Utilities report profits up; gas rate increase sought

Las Vegas-based utility companies Southwest Gas Corp. and NV Energy are reporting higher first-quarter profits.

Southwest Gas, which serves customers in Arizona, California and Nevada, last week said it earned $78.9 million, or $1.70 per share, on operating revenue of $657.7 million.

That’s up from a profit of $68.6 million, $1.48 per share, on operating revenue of $628.4 million in the first quarter of 2011.

The company attributed part of the improvement to higher rates in Arizona and said that in Nevada, it’s seeking an annual rate increase that would boost revenue $27 million.

Separately, NV Energy on Tuesday said that its profits are so strong that it’s boosting its quarterly dividend to shareholders from 13 cents per share to 17 cents per share.

The company earned $12.2 million, or 5 cents per share, in the most recent quarter. That’s up from $2.3 million or 1 cent in the year-ago quarter.

Gross margin — operating revenue less energy and conservation costs — of $338 million was up from $308.9 million.

“Earnings increased despite mild weather, largely due to higher income associated with our investment in the Harry Allen generating station,” CEO Michael Yackira said in a statement. “The dividend increase we announced today demonstrates our confidence that NV Energy is entering a period of more stable earnings and sustained free cash flow.”

A $700 million expansion of the Harry Allen natural gas-fired electric generating station 25 miles north of Las Vegas was added to the local power grid last year. The plant serves 375,000 homes. Its costs are now included in higher rates paid by customers.

Business

Share

Previous Discussion:

Discussion 3 comments

Only trusted comments are displayed on this page. Untrusted comments have expired from this story.

  1. Greedy little piggies.

  2. NV Energy builds a new power plant and gets a rate increase to cover the cost.

    Now the ratepayers are paying for the new power plant and the savings from not having to purchase the electricity is given to investors in the form of an over 30% increase in dividends.

    How is it that NV Energy crys poor at the PUC hearings then hands out a 30% increase in dividends? Nice to see Governor Sandavol was looking out for the investors, instead of constituents, when making his appointments to the PUC. How much in campaign contributions from NV Energy to Sandavol receive? I'm paying an 11% increase in my electricity rates so investors can get a 30% increase in dividends. Nice.

  3. Gasoline prices up...check.

    Food prices up...check.

    Water rates up...check.

    Electricity rates up...check.

    Now, natural gas rates up...check.

    Increase in pay? Forget it.