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Monday, March 31, 2025

Commissioner Walden pushes for transparency and efficiency in Southwest Gas rate case

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Nick Myers, Vice Chair | Arizona Corporation Commission

Nick Myers, Vice Chair | Arizona Corporation Commission

Commissioner Rachel Walden has played a key role in two significant amendments approved during the recent Arizona Corporation Commission meeting. These amendments, backed by unanimous votes, focus on the Southwest Gas rate case.

The first amendment led to the removal of a proposal for Southwest Gas to implement income-based rate classes in its future rate cases. Commissioner Walden emphasized the need to carefully consider structural changes. "I’m not a proponent of income-based rates. They create cost shifts and are difficult, if not impossible, to verify eligibility," she stated. She pointed to California's experience, noting that the California Public Utility Commission's attempt to introduce income-based rates led to significant litigation and was eventually withdrawn.

The second amendment, created together with Chair Thompson, aims to ensure that energy efficiency program spending aligns with what is collected via an approved surcharge. It also prioritizes supporting low-income families. Commissioner Walden stated, "I do not rubber-stamp backdoor cost recovery. This amendment strikes the right balance between honoring low-income support programs and requiring accountability."

Commissioner Walden praised Administrative Law Judge Hains for his contributions to the case, which originally suggested an 11.5% increase in average residential bills. The amended decision successfully reduces the proposed rate hike by over 36% for all ratepayers.

For further details, Commissioner Walden's office can be reached via Walden-Web@azcc.gov.

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