Customers of Southwest Gas can expect reduced monthly bills after a newly approved rate change takes effect.

The Public Utilities Commission of Nevada has approved a statewide rate decrease for Southwest Gas customers as part of an order issued in Docket No. 25-05009.

The decision, approved June 23, follows a settlement agreement between the commission’s Regulatory Operations Staff, Southwest Gas, and the Nevada Bureau of Consumer Protection.

The approved change lowers the company’s Deferred Energy Accounting Adjustment, or DEAA, rate, which affects how customers are charged for the cost of natural gas.

In Southern Nevada, the DEAA rate will drop from $0.16528 per therm to ($0.20000) per therm.

In Northern Nevada, the rate will go from $0.15000 per therm to ($0.25000) per therm.

The lower rates are scheduled to take effect July 1.

Based on average usage, Southwest Gas estimates the reduction will lower monthly bills by more than $13 for customers in Southern Nevada and by more than $22 for customers in Northern Nevada.

The company stated, “See Exhibit 1 to the accepted Stipulation for an average bill comparison.”

The DEAA is a pass-through rate, which means Southwest Gas does not earn a profit from the natural gas it purchases on behalf of its customers.

State law allows the company to earn returns on infrastructure investments, but not on fuel purchases.

Southwest Gas recovers natural gas costs through two charges: the Base Tariff Energy Rate, or BTER, and the DEAA.

The BTER is based on estimated fuel costs and updated quarterly using the previous 12 months of recorded prices.

The DEAA adjusts for any difference between the BTER revenues and the actual cost of gas, ensuring customers pay only what the utility paid.

Overcharges result in a credit, while undercharges result in a collection adjustment.

Officials said the rate reduction reflects shifts in market conditions.

The Bureau of Consumer Protection, part of the Nevada Attorney General’s Office, represents residential and small business customers in matters before the commission.