PHOENIX – The Arizona Corporation Commission hosted its Winter Preparedness Workshop on Tuesday, October 1. Arizona’s regulated natural gas utilities, including Southwest Gas and UNS Gas, Inc. delivered detailed presentations to the Commission and stakeholders. Interstate Natural Gas Pipeline Companies, Kinder Morgan and Transwestern Pipeline Company, also delivered presentations.
Overall, natural gas production continues to increase, storage levels are above the 5-year average, and the national supply appears secure and steady. Both Southwest Gas and UNS Gas, Inc. officials announced lower gas prices will result in lower monthly bills for customers. The Purchased Gas Cost Adjustment (PGA) is expected to fall in the coming months. By April 2025, Southwest Gas said its customers can expect to see a $19 decrease in their natural gas bills compared to last year. On average, Southwest Gas residential customers should see their winter bills decrease by about $14 a month, with the average residential bill estimated to be at $67.24. Last winter season, the average residential bill was about $81.04.
Kinder Morgan operates the largest natural gas transmission network in the United States. In its presentation, the network told the Commission that it is able to access natural gas supplies from several different pipelines to continuously meet the daily demands of customers and power generating utilities throughout the peak winter season, which runs from November through March. Transwestern Pipeline Company also operates a natural gas transmission network that serves Arizona and other western states. Transwestern’s Phoenix lateral delivery network and mainly serves the state’s electric utilities power generating facilities. The Phoenix lateral is continually expanding as supply and use are increasing.
The National Oceanic and Atmospheric Administration is predicting La Nina winter pattern this year, which could produce warmer-than-average temperatures for Arizona, and further help keep natural gas prices lower.
