Investing in Arizona
On February 27, 2026, Southwest Gas Corporation submitted a general rate case application to the Arizona Corporation Commission seeking a $101 million revenue increase. If approved, under these new rates, which would take effect by April 2027, the average residential customer will see an increase of $5.18 per month (10.69% over current rates).
It will help ensure that Southwest Gas can continue making critical investments to:
HIGHLIGHTS
The rate case will refresh rates to reflect today’s costs to safely and reliably deliver natural gas service to customers.It will help ensure that Southwest Gas can continue making critical investments to:
- Maintain and upgrade natural gas pipelines for safety and reliability.
- Support the growing energy needs of Arizona’s communities.
- Strengthen systems that serve new homes, businesses, and economic development.
Key Takeaways
- Updates rates to reflect the current level of operating expense.
- Reflects infrastructure investment of $900M made over approximately 3 years.
- Continuation of full revenue decoupling .
- No change to rate design and maintains basic service charge.
**American Council for an Energy-Efficient Economy
- Proposes a Rate Adjustment Mechanism (RAM), an annual rate adjustment mechanism designed to recover changes in the cost of service.
- The average Southwest Gas residential customer’s Energy Burden is 0.5%, as compared to 3.1% for the average US residential customer**.
Frequently Asked Questions
What is a General Rate Case?
Southwest Gas is a regulated utility and only earns a return on our investments that are approved by our regulators. We are not allowed to adjust the delivery charge without regulatory approval. The Company makes significant investments in our distribution system to ensure our customers can rely on their natural gas service. Unlike non-regulated companies, regulated utilities can only recoup those investments after they have been scrutinized and approved through the regulatory process of a General Rate Case.
Will customers be notified of a rate change?
Yes. Southwest Gas provides written notice to customers of delivery charge rate changes. We notify customers of these changes through bill inserts.
How will these new rates affect customer bills?
We understand the importance of keeping energy affordable and are committed to managing our costs to operate efficiently for our customers. We estimate that the average residential customer that uses 24 therms per month will see an increase of $5.18 per month.
Why does Southwest Gas need to adjust rates?
The Company needs to refresh customer rates to reflect the current level of operating expense and infrastructure investment.
When was the last time Southwest Gas adjusted its rates in Arizona?
Southwest Gas last adjusted its rates in March 2025 to recover the cost of investments made from September 2022 through October 2024.
Is Southwest Gas proposing changes to the components on my bill?
No, the filing maintains the current rate design that’s been in place since January 2012. The rate design continues to include a monthly basic service charge and a volumetric rate, which captures both the delivery charge and gas cost component on a customer's bill.
What if a customer needs assistance paying their bill?
We know energy costs are an important part of household budgets, and we’re here to help. Southwest Gas offers payment assistance programs, budget billing options, and flexible payment plans for customers who need support. More information about these and other programs can be found at swgas.com/azassist.
Where can I find more information?
Download a copy of the filing:
Arizona General Rate Case 2026 Application
For more information about the charges on a natural gas bill visit:
swgas.com/understanding-your-bill
