Another Southwest Gas Rate Hike Strains Family Budgets

Last year, Southwest Gas celebrated a record-breaking revenue increase, driven by consecutive rate hikes on Arizona customers in 2022 and 2023.

Now, in 2024, gas company executives are planning another rate hike—the third in three years. Southwest Gas has filed a new rate case with the Arizona Corporation Commission (ACC), seeking a $125.6 million revenue increase, which translates to a roughly 12% rate hike.

Many Arizonans, especially those from marginalized communities, are already struggling to pay their bills. The company’s latest earnings report revealed its highest quarterly income ever, with President and CEO Karen S. Haller earning over $7.1 million last year.

The disproportionate impact of these rate increases on low-income and marginalized communities cannot be overlooked. An April 2024 report from the National Energy Assistance Directors Association shows that at least one-third of households of color, low-income households, and households with children struggle to pay their utility bills.

Partnering with Moms Clean Air Force, I aim to highlight this unfair rate hike that the ACC will soon vote on. Our utility regulators must ensure that all Arizonans have access to safe, reliable, and affordable energy.

Utility regulators should protect consumer interests, but recent history shows they haven’t. It’s essential to reduce subsidies and incentives that increase reliance on methane gas, a potent climate pollutant linked to respiratory illnesses.

Natural gas, primarily methane, has a global warming potential 87 times greater than carbon dioxide and contributes to Arizona’s poor air quality. Phoenix consistently ranks among the most polluted cities in the U.S.

When methane enters our homes through gas appliances, it emits pollutants like nitrogen dioxide, carbon monoxide, and formaldehyde, contributing to respiratory illnesses such as asthma.

I strongly oppose Southwest Gas’ request for a third rate hike in three years. We must transition away from fossil fuels like gas and coal to improve the health of our communities. This rate increase will only benefit Southwest Gas’ executives and shareholders.

Paloma Greenwald, RN BSN MA, is a Health Policy Nurse and a member of the Arizona Nurses Association Climate Change & Health Working Group and the Public Policy Committee of the Arizona Public Health Association. She resides in Surprise.