EX-99 2 a201810-yearstatisticalrep.htm 2018 10-YEAR STATISTICAL REPORT Exhibit

 
RATEMAKING JURISDICTIONS AND REGULATORY AGENCIES
 
 
 
 
 
 
 
 
 
The Company is subject to regulation by the Arizona Corporation Commission (ACC), the Public Utilities Commission of Nevada (PUCN) and the California Public Utilities Commission (CPUC). These commissions regulate public utility rates, practices, facilities, and service territories in their respective states.
 
 
 
 
 
 
 
 
 
 
The Federal Energy Regulatory Commission (FERC) regulates a wholly owned subsidiary of the Company, Paiute Pipeline Company (Paiute), and the rates it charges for transportation of gas directly to certain end-users and the transportation and storage of gas to various local distribution companies for resale in northern Nevada and northern California.
 
 
 
 
 
 
 
 
 
 
Shown below is a list of Southwest's ratemaking jurisdictions and the corresponding regulatory agency having jurisdiction:
 
 
 
 
 
 
 
 
 
 
Ratemaking Jurisdiction
 
Regulatory Agency
 
 
 
 
 
Arizona:
 
Arizona Corporation Commission
 
 
 
 
 
 
 
1200 West Washington
 
Web site:
www.azcc.gov
 
 
 
 
Phoenix, AZ 85007-2996
 
 
 
 
 
 
 
(602) 542-4251
 
FAX:
(602) 542-2129
 
 
 
 
 
 
 
 
 
 
California:
 
California Public Utilities Commission
 
 
 
 
 
    Northern
 
505 Van Ness Avenue
 
Web site:
www.cpuc.ca.gov
 
 
    Southern
 
San Francisco, CA 94102-3298
 
 
 
 
 
    South Lake Tahoe
 
(415) 703-2782
 
FAX:
(415) 703-1758
 
 
 
 
 
 
 
 
 
 
Nevada:
 
Public Utilities Commission of Nevada
 
 
 
 
 
    Northern
 
1150 East William Street
 
Web site:
http://puc.nv.gov
 
 
    Southern
 
Carson City, NV 89701-3109
 
 
 
 
 
 
 
(775) 684-6101
 
FAX:
(775) 684-6110
 
 
 
 
 
 
 
 
 
 
Nevada/California:
 
Federal Energy Regulatory Commission
 
 
 
 
 
    Paiute
 
888 First Street, N.E.
 
Web site:
www.ferc.gov
 
 
 
 
Washington, DC 20426
 
 
 
 
 
 
 
(202) 502-8400
 
FAX:
(202) 208-2268
 
 
 
 
 
 
 
 
 
A list of the commissioners appointed or elected to the various regulatory agencies follows this page.



SUMMARY OF COMMISSIONER STATUS BY JURISDICTION
March 2019
 
 
 
 
 
 
ARIZONA
 
 
 
 
 
Five members, elected statewide to four-year staggered terms. Governor appoints replacements, if position is vacated.
 
Chairman Bob Burns
Rep.
Term ends
01/01/2021
 
Commissioner Boyd Dunn
Rep.
Term ends
01/01/2021
 
Commissioner Andy Tobin
Rep.
Term ends
01/01/2021
 
Commissioner Sandra Kennedy
Dem.
Term ends
01/01/2023
 
Commissioner Justin Olson
Rep.
Term ends
01/01/2023
 
Executive Director Matt Neubert
 
 
 
CALIFORNIA
 
 
 
 
 
Five members, appointed to six-year staggered terms by Governor and confirmed by Senate.
 
President Michael Picker
Dem.
Term ends
12/31/2020
 
Commissioner Liane M. Randolph
Dem.
Term ends
12/31/2020
 
Commissioner Martha Guzman-Aceves
Dem.
Term ends
12/31/2022
 
Commissioner Clifford L. Rechtschaffen
Dem.
Term ends
12/31/2022
 
Commissioner Genevieve A. Shiroma
Dem.
Term ends
12/31/2024
 
Executive Director Alice Stebbins
 
 
 
NEVADA
 
 
 
 
 
Three members, appointed to four-year staggered terms by Governor; no confirmation required.
 
Chairman Ann Wilkinson
Rep.
Term ends
09/30/2020
 
Commissioner Ann C. Pongracz
Dem.
Term ends
09/30/2019
 
Commissioner C.J. Manthe
Rep.
Term ends
09/30/2021
 
Executive Director Stephanie Mullen
 
 
 
FERC
 
 
 
 
 
Up to five members, appointed to five-year staggered terms by President and confirmed by U.S. Senate.
 
Chairman Neil Chatterjee
Rep.
Term ends
06/30/2021
 
Commissioner Cheryl A. LaFleur
Dem.
Term ends
06/30/2019
 
Commissioner Bernard McNamee
Rep.
Term ends
06/30/2020
 
Commissioner Richard Glick
Dem.
Term ends
06/30/2022
 
Secretary Kimberly D. Bose
 
 
 






SUMMARY OF KEY REGULATORY FILINGS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ADDITIONAL
ADDITIONAL
PERCENT
OVERALL
RATE OF
 
 
 
 
 
 
MARGIN
MARGIN
AUTHORIZED
RATE OF
RETURN ON
COMMON
 
FILING
TEST
FILING
EFFECTIVE
REQUESTED
AUTHORIZED
OF REQUESTED
RETURN
COMMON EQUITY
EQUITY
JURISDICTION
TYPE [1]
PERIOD
DATE
DATE
($mm)
($mm) [2]
AMOUNTS
GRANTED
GRANTED
RATIO
NEVADA
 
 
 
 
 
 
 
 
 
 
    Docket No. 16-06003 (SNV) [3]
VIER
 
06/03/16
01/01/17
0.0
0.0
100
6.46
10.00
42.74
    Docket No. 16-09022 (NNV)
GIR
 
09/30/16
01/01/17
0.1
0.1
100
7.88
9.30
59.06
    Docket No. 16-09022 (SNV)
GIR
 
09/30/16
01/01/17
0.7
0.7
100
6.46
10.00
42.74
    Docket No. 17-06002 (SNV) [3]
VIER
 
06/01/17
01/01/18
0.8
0.8
100
6.55
10.00
42.74
    Docket No. 17-09029 (NNV)
GIR
 
09/29/17
01/01/18
(0.2)
(0.2)
100
7.88
9.30
59.06
    Docket No. 17-09029 (SNV)
GIR
 
09/29/17
01/01/18
4.4
4.4
100
6.46
10.00
42.74
    Docket No. 18-06005 (SNV) [3]
VIER
 
06/04/18
01/01/19
0.0
0.0
100
6.46
10.00
42.74
    Docket No. 18-05031 (NNV)
GRC
01/31/18
05/29/18
03/04/19
1.4
(2.1)
NM
6.98
9.25
49.66
    Docket No. 18-05031 (SNV)
GRC
01/31/18
05/29/18
03/04/19
28.3
9.2
33
6.65
9.25
49.66
    Docket No. 18-05031 (NNV)
GIR
01/31/18
05/29/18
01/01/19
0.0
0.0
100
6.98
9.25
49.66
    Docket No. 18-05031 (SNV)
GIR
01/31/18
05/29/18
01/01/19
6.0
6.0
100
6.65
9.25
49.66
ARIZONA
 
 
 
 
 
 
 
 
 
 
    Docket No. G-0155A-16-0107
GRC
11/30/15
05/02/16
04/01/17
32.0
16.0
50.0
7.42
9.50
51.70
    Docket No. G-0155A-16-0107
COYL
 
02/28/18
09/01/18
2.4
1.7
71.0
7.42
9.50
51.70
    Docket No. G-0155A-16-0107
VSP
 
02/28/18
09/01/18
3.0
2.4
80.0
5.71
9.50
51.70
    Docket No. G-0155A-16-0107 [4]
COYL
 
02/27/19
06/01/19
3.2
TBD
TBD
TBD
TBD
TBD
    Docket No. G-0155A-16-0107 [5]
VSP
 
02/27/19
06/01/19
9.5
TBD
TBD
TBD
TBD
TBD
 
 
 
 
 
 
 
 
 
 
 
CALIFORNIA
 
 
 
 
 
 
 
 
 
 
    Application 12-12-024 (SCA)
GRC
12/31/14
12/20/12
06/12/14
5.6
1.9
34
6.83
10.10
55.00
    Application 12-12-024 (NCA/SLT)
GRC
12/31/14
12/20/12
06/12/14
6.0
5.2
87
8.18
10.10
55.00
    Advice Letter No. 960 (SCA)
Attrition
 
11/26/14
01/01/15
1.8
1.8
100
6.83
10.10
55.00
    Advice Letter No. 960 (NCA/SLT)
Attrition
 
11/26/14
01/01/15
0.7
0.7
100
8.18
10.10
55.00
    Advice Letter No. 995 (SCA)
Attrition
 
11/30/15
01/01/16
1.8
1.8
100
6.83
10.10
55.00
    Advice Letter No. 995 (NCA/SLT)
Attrition
 
11/30/15
01/01/16
0.7
0.7
100
8.18
10.10
55.00
    Advice Letter No. 996 (SCA)[6]
Attrition
 
11/30/15
01/01/16
1.7
1.7
100
6.83
10.10
55.00
    Advice Letter No 1024 (SCA)
Attrition
 
11/30/16
01/01/17
1.9
1.9
100
6.83
10.10
55.00
    Advice Letter No. 1024 (NCA/SLT)
Attrition
 
11/30/16
01/01/17
0.8
0.8
100
8.18
10.10
55.00
    Advice Letter No. 1025 (SCA) [6]
Attrition
 
11/30/16
01/01/17
0.2
0.2
100
6.83
10.10
55.00
    Advice Letter No. 1058 (SCA)
Attrition
 
11/30/17
01/01/18
2.0
2.0
100
6.83
10.10
55.00
    Advice Letter No. 1058 (NCA/SLT)
Attrition
 
11/30/17
01/01/18
0.8
0.8
100
8.18
10.10
55.00
    Advice Letter No. 1086 (SCA)
Attrition
 
11/30/18
01/01/19
2.0
2.0
100
6.83
10.10
55.00
    Advice Letter No. 1086 (NCA/SLT)
Attrition
 
11/30/18
01/01/19
0.8
0.8
100
8.18
10.10
55.00
FERC
 
 
 
 
 
 
 
 
 
 
    Docket No. RP14-540
GRC
08/31/14
02/28/14
09/01/14
9.0
2.4
27
[7]
[7]
[7]
    Docket No. CP14-509 (2015 Elko Expansion)
Expansion
 
06/27/14
01/06/16
6.0
6.0
100
[8]
[8]
[8]
    Docket No. CP17-471 (2018 Expansion)
Expansion
 
07/05/17
11/26/18
3.3
3.3
100
[8]
[8]
[8]
 
 
 
 
 
 
 
 
 
 
 
[1] GRC = General Rate Case; VIER = Variable Interest Expense Recovery Mechanism; GIR= Gas Infrastructure Replacement; COYL= Customer Owned Yard Lines;
 
 
     Attrition = Annual Attrition Filing and Automatic Trigger Mechanism for Cost of Capital; VSP = Vintage Steel Pipe
 
 
[2] Authorized amounts do not include the effect of lower depreciation rates, which contribute to an increase in operating income
 
 
[3] Represents the net change in margin resulting from the Average Variable Interest Rate (AVIR)
 
 
[4] 2019 COYL margin pending ACC approval, expected May 2019
 
 
[5] 2019 VSP margin pending ACC approval, expected May 2019
 
 
[6] Adjustments to 2016 (AL 996) and 2017 (AL 1025) Attrition to recover the revenue requirement associated with the Victor Valley transmission replacement
 
 
[7] Stipulation - Not Identified in Order
 
 
[8] Stipulation in Docket No. RP14-540 authorized a pre-tax rate of return of 11.50 percent
 
 




SUMMARY OPERATING RESULTS
 
YEAR ENDED DECEMBER 31,
(In thousands, except per share amounts)
 
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Results of Consolidated Operations
 
 
 
 
 
 
 
 
 
 
 
Contribution to net income - gas operations
 
$
138,842

$
156,818

$
119,423

$
111,625

$
116,872

$
124,169

$
116,619

$
91,420

$
91,382

$
79,420

Contribution to net income - utility infrastructure services
 
44,977

38,360

32,618

26,692

24,254

21,151

16,712

20,867

12,495

8,062

Contribution to net income - corporate and administrative
 
(1,542
)
(1,337
)








Net income
 
$
182,277

$
193,841

$
152,041

$
138,317

$
141,126

$
145,320

$
133,331

$
112,287

$
103,877

$
87,482

 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
 
$
3.69

$
4.04

$
3.20

$
2.94

$
3.04

$
3.14

$
2.89

$
2.45

$
2.29

$
1.95

Diluted earnings per share
 
$
3.68

$
4.04

$
3.18

$
2.92

$
3.01

$
3.11

$
2.86

$
2.43

$
2.27

$
1.94

 
 
 
 
 
 
 
 
 
 
 
 
Average common shares
 
49,419

47,965

47,469

46,992

46,494

46,318

46,115

45,858

45,405

44,752

Average shares (assuming dilution)
 
49,476

47,991

47,814

47,383

46,944

46,758

46,555

46,291

45,823

45,062

 
 
 
 
 
 
 
 
 
 
 
 
Results of Natural Gas Operations
 
 
 
 
 
 
 
 
 
 
 
Gas operating revenues
 
$
1,357,728

$
1,302,308

$
1,321,412

$
1,454,639

$
1,382,087

$
1,300,154

$
1,321,728

$
1,403,366

$
1,511,907

$
1,614,843

Net cost of gas sold
 
419,388

355,045

397,121

563,809

505,356

436,001

479,602

613,489

736,175

866,630

Operating margin
 
938,340

947,263

924,291

890,830

876,731

864,153

842,126

789,877

775,732

748,213

Operations and maintenance expense *
 
404,813

391,321

381,964

369,832

368,313

361,422

349,257

342,882

340,435

340,343

Depreciation and amortization
 
191,816

201,922

233,463

213,455

204,144

193,848

186,035

175,253

170,456

166,850

Taxes other than income taxes
 
59,898

57,946

52,376

49,393

47,252

45,551

41,728

40,949

38,869

37,318

Operating income
 
281,813

296,074

256,488

258,150

257,022

263,332

265,106

230,793

225,972

203,702

Other income (deductions)*
 
(17,240
)
(6,388
)
(11,484
)
(21,075
)
(8,254
)
(11,231
)
(16,557
)
(21,020
)
(10,492
)
(2,009
)
Net interest deductions
 
81,740

69,733

66,997

64,095

68,299

62,555

66,957

68,777

75,113

74,091

Net interest deductions on subordinated debentures
 








1,912

7,731

Income before income taxes
 
182,833

219,953

178,007

172,980

180,469

189,546

181,592

140,996

138,455

119,871

Income tax expense
 
43,991

63,135

58,584

61,355

63,597

65,377

64,973

49,576

47,073

40,451

Contribution to consolidated net income
 
$
138,842

$
156,818

$
119,423

$
111,625

$
116,872

$
124,169

$
116,619

$
91,420

$
91,382

$
79,420

 
 
 
 
 
 
 
 
 
 
 
 
* To reflect the impacts of the Company's adoption of the Financial Accounting Standard Board ("FASB") update, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost", non-service components of these costs have been presented as reclassified to Other income (deductions) for all periods presented, with no impact to earnings overall.




SUMMARY CONSOLIDATED BALANCE SHEET
 AT DECEMBER 31,
(In thousands)
 
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Net utility plant
 
$
5,093,238

$
4,523,650

$
4,131,971

$
3,891,085

$
3,658,383

$
3,486,108

$
3,343,794

$
3,218,944

$
3,072,436

$
3,034,503

Other property and investments
 
623,551

428,180

342,343

313,531

326,743

260,871

242,096

192,004

134,648

115,860

Restricted cash
 




821



12,785

37,781

49,769

Current assets
 
839,769

657,032

533,307

558,174

606,611

494,672

458,417

461,632

445,894

417,632

Noncurrent assets
 
801,171

628,204

573,505

595,895

615,739

323,523

443,750

390,642

293,434

288,528

  Total assets
 
$
7,357,729

$
6,237,066

$
5,581,126

$
5,358,685

$
5,208,297

$
4,565,174

$
4,488,057

$
4,276,007

$
3,984,193

$
3,906,292

CAPITALIZATION
 
 
 
 
 
 
 
 
 
 
 
Common stock equity
 
$
1,360,425

$
1,005,052

$
952,235

$
945,455

$
899,534

$
888,507

$
876,555

$
869,226

$
855,114

$
839,061

Accumulated other comprehensive income (loss), net
 
(52,668
)
(47,682
)
(48,008
)
(50,268
)
(50,175
)
(41,698
)
(50,745
)
(49,331
)
(30,784
)
(22,250
)
Retained earnings
 
944,285

857,398

759,263

699,221

639,164

567,714

484,369

406,125

343,131

285,316

Noncontrolling interest
 
(452
)
(2,365
)
(2,217
)
(2,083
)
(2,257
)
(2,128
)
(1,681
)
(989
)
(465
)
(41
)
Subordinated debentures
 









100,000

Redeemable noncontrolling interest
 
81,831


22,590

16,108

20,042






Long-term debt, less current maturities
 
2,107,258

1,798,576

1,549,983

1,551,204

1,631,374

1,381,327

1,268,373

930,858

1,124,681

1,169,357

  Total capitalization
 
$
4,440,679

$
3,610,979

$
3,233,846

$
3,159,637

$
3,137,682

$
2,793,722

$
2,576,871

$
2,155,889

$
2,291,677

$
2,371,443

LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
Current maturities of long-term debt
 
$
33,060

$
25,346

$
50,101

$
19,475

$
19,192

$
11,105

$
50,137

$
322,618

$
75,080

$
1,327

Current liabilities
 
905,585

790,535

578,274

515,570

450,925

423,059

484,992

524,950

521,881

472,903

Deferred income taxes and investment tax credits
 
529,201

476,960

840,653

769,445

723,688

674,411

616,184

557,118

466,628

436,113

Other deferred credits and other long-term liabilities
 
1,449,204

1,333,246

878,252

894,558

876,810

662,877

759,873

715,432

628,927

624,506

  Total liabilities
 
2,917,050

2,626,087

2,347,280

2,199,048

2,070,615

1,771,452

1,911,186

2,120,118

1,692,516

1,534,849

  Total capitalization and liabilities
 
$
7,357,729

$
6,237,066

$
5,581,126

$
5,358,685

$
5,208,297

$
4,565,174

$
4,488,057

$
4,276,007

$
3,984,193

$
3,906,292

 
 
  

  

  

  

  

  

  

  

  

  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAS SEGMENT CASH FLOWS
 
YEAR ENDED DECEMBER 31,
(In thousands)
 
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
From operating activities
 
$
382,502

$
309,216

$
507,224

$
497,500

$
288,534

$
265,290

$
344,441

$
216,745

$
342,522

$
371,416

From investing activities
 
(669,392
)
(557,384
)
(446,238
)
(416,727
)
(328,645
)
(304,189
)
(296,886
)
(289,234
)
(178,685
)
(265,850
)
From financing activities
 
280,906

267,090

(63,339
)
(74,159
)
23,413

44,947

(43,453
)
(2,327
)
(107,779
)
(81,744
)
  Net change in cash
 
$
(5,984
)
$
18,922

$
(2,353
)
$
6,614

$
(16,698
)
$
6,048

$
4,102

$
(74,816
)
$
56,058

$
23,822

 
 
  
  
  
  
  
  
  
  
  
  




GAS OPERATIONS SEGMENT
UTILITY PLANT
 
AT DECEMBER 31,
(In thousands)
 
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Distribution
 
$
6,049,380

$
5,600,769

$
5,198,531

$
4,935,730

$
4,655,640

$
4,410,598

$
4,224,560

$
4,048,078

$
3,847,731

$
3,716,881

General
 
416,643

396,252

382,084

365,865

356,072

324,490

310,936

291,639

279,402

270,825

Transmission
 
386,159

363,396

349,981

312,996

312,300

313,306

301,505

295,103

274,646

271,467

Intangible
 
243,694

232,566

226,754

205,782

198,457

171,193

150,396

144,135

135,330

127,188

Construction work in progress
 
193,028

125,248

111,177

119,805

74,332

101,413

74,178

44,894

37,489

45,872

Other
 
38,363

36,661

36,410

34,914

34,680

33,612

33,014

33,186

33,267

33,376

Accumulated depreciation & amortization
 
(2,234,029
)
(2,231,242
)
(2,172,966
)
(2,084,007
)
(1,973,098
)
(1,868,504
)
(1,750,795
)
(1,638,091
)
(1,535,429
)
(1,431,106
)
  Net utility plant
 
$
5,093,238

$
4,523,650

$
4,131,971

$
3,891,085

$
3,658,383

$
3,486,108

$
3,343,794

$
3,218,944

$
3,072,436

$
3,034,503

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OPERATIONS & MAINTENANCE EXPENSES
 
YEAR ENDED DECEMBER 31,
(In thousands)
 
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Distribution
 
$
185,176

$
186,860

$
188,064

$
181,249

$
170,377

$
174,129

$
166,356

$
157,855

$
157,220

$
159,282

Administrative and general*
 
151,157

135,569

123,246

114,501

122,532

107,874

104,152

107,741

106,434

103,927

Customer accounts
 
47,719

48,937

51,024

51,071

50,200

53,809

55,894

57,414

60,187

60,896

Transmission
 
15,020

13,744

13,666

14,779

15,792

15,864

14,207

12,353

9,622

9,338

Production and storage expenses
 
4,885

5,256

4,889

5,052

4,960

5,054

4,500

4,492

4,215

3,985

Customer service and informational
 
827

935

1,050

3,165

4,440

4,677

4,142

2,962

2,646

2,484

Sales
 
29

20

25

15

12

15

6

65

111

431

  Total operations and maintenance expenses*
 
$
404,813

$
391,321

$
381,964

$
369,832

$
368,313

$
361,422

$
349,257

$
342,882

$
340,435

$
340,343

 
 
 
 
 
 
 
 
 
 
 
 
* To reflect the impacts of the Company's adoption of the update to FASB Topic 715, all periods are presented to exclude non-service components of net periodic pension and other post-retirement benefit cost, which have been reclassified to Other income (deductions) for purposes of this report.



GAS OPERATIONS SEGMENT
 
AT DECEMBER 31,
CUSTOMERS BY CLASS
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Residential
1,964,355

1,932,332

1,902,227

1,874,852

1,849,555

1,824,008

1,796,929

1,780,155

1,758,557

1,744,481

Small commercial
80,676

80,047

79,437

78,833

78,230

77,848

76,800

76,633

76,746

77,416

Large commercial
992

1,016

1,042

1,043

1,086

1,076

1,118

1,433

1,185

1,263

Industrial / Other
329

332

318

318

341

333

308

320

328

320

Transportation
955

929

905

879

833

812

739

715

643

646

  Total customers
2,047,307

2,014,656

1,983,929

1,955,925

1,930,045

1,904,077

1,875,894

1,859,256

1,837,459

1,824,126

 
 
 
 
 
 
 
 
 
 
 
ANNUAL CUSTOMER GROWTH RATE
1.6
%
1.5
%
1.4
%
1.3
%
1.4
%
1.5
%
0.9
%
1.2
%
0.7
%
0.3
%
 
 
 
 
 
 
 
 
 
 
 
SYSTEM THROUGHPUT BY CLASS
 YEAR ENDED DECEMBER 31,
(In thousands of dekatherms)
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Residential
69,702

67,427

68,463

65,542

61,738

74,133

65,505

71,877

70,470

66,974

Small commercial
30,534

29,767

29,452

28,512

27,658

29,804

27,067

30,392

30,094

29,423

Large commercial
9,255

9,256

9,095

9,228

9,439

10,276

11,658

11,226

11,183

11,724

Industrial / Other
3,775

3,382

3,028

3,097

3,238

5,021

4,783

5,021

5,892

7,262

Transportation
105,055

97,441

97,056

103,571

90,669

103,792

99,809

94,154

99,860

104,389

  Total system throughput
218,321

207,273

207,094

209,950

192,742

223,026

208,822

212,670

217,499

219,772

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OPERATING MARGIN BY CLASS*
 YEAR ENDED DECEMBER 31,
(In thousands)
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Residential
$
647,209

$
657,574

$
640,157

$
623,828

$
612,641

$
601,076

$
582,619

$
549,844

$
537,980

$
513,299

Small commercial
145,250

144,096

142,490

136,344

136,272

133,474

132,964

129,946

127,802

129,103

Large commercial
22,822

22,232

22,450

22,249

23,412

25,171

26,421

20,248

20,936

21,879

Industrial / Other
8,251

7,495

7,177

6,937

6,477

7,735

8,706

8,772

9,515

10,302

Transportation
114,808

115,866

112,017

101,472

97,929

96,697

91,416

81,067

79,499

73,630

  Total operating margin
$
938,340

$
947,263

$
924,291

$
890,830

$
876,731

$
864,153

$
842,126

$
789,877

$
775,732

$
748,213

 
 
 
 
 
 
 
 
 
 
 
 * Includes allocations of miscellaneous, unbilled, and other operating revenues.
 
 
 
 
 
 
 




 
 
 
 
 
 
 
 
 
 
 
 
MARKET PRICE PER SHARE
 
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
High
 
$
85.97

$
86.87

$
79.58

$
63.68

$
64.20

$
56.03

$
46.08

$
43.20

$
37.25

$
29.48

Low
 
62.54

72.32

53.51

50.78

47.21

42.02

39.01

32.12

26.28

17.08

Close [1]
 
76.50

80.48

76.62

55.16

61.81

55.91

42.41

42.49

36.67

28.53

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
COMMON SHARES OUTSTANDING (in thousands) [1]
 
53,026

48,090

47,482

47,378

46,523

46,356

46,148

45,956

45,599

45,092

DIVIDEND YIELD [1]
 
2.7
%
2.5
%
2.3
%
2.9
%
2.4
%
2.4
%
2.8
%
2.5
%
2.7
%
3.3
%
DIVIDENDS DECLARED PER SHARE [2]
 
$
2.08

$
1.98

$
1.80

$
1.62

$
1.46

$
1.32

$
1.18

$
1.06

$
1.00

$
0.95

PRICE / EARNINGS RATIO [1]
 
20.73

19.92

23.94

18.76

20.33

17.81

14.67

17.34

16.01

14.63

RETURN ON EQUITY - TOTAL COMPANY [2]
 
9.3
%
11.2
%
9.3
%
8.9
%
9.7
%
10.6
%
10.4
%
9.3
%
9.1
%
8.1
%
RETURN ON EQUITY - GAS SEGMENT ONLY [2]
 
8.2
%
10.0
%
7.7
%
7.6
%
8.5
%
9.6
%
9.6
%
8.0
%
8.5
%
7.8
%
BOOK VALUE PER SHARE [1]
 
$
42.63

$
37.74

$
35.03

$
33.65

$
32.03

$
30.51

$
28.39

$
26.68

$
25.60

$
24.44

 
 
 
 
 
 
 
 
 
 
 
 
GAS OPERATIONS SEGMENT
 
 
YEAR ENDED DECEMBER 31,
HEATING DEGREE DAY COMPARISON
 
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Actual
 
1,531

1,478

1,613

1,512

1,416

1,918

1,740

2,002

1,998

1,824

Ten-year average
 
1,694

1,733

1,771

1,792

1,816

1,876

1,866

1,888

1,876

1,882

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
NUMBER OF GAS SEGMENT EMPLOYEES [1]
 
2,312

2,285

2,247

2,219

2,196

2,220

2,245

2,298

2,349

2,423

CUSTOMERS / EMPLOYEE [1]
 
886

882

883

881

879

858

836

809

782

753

OPERATIONS & MAINTENANCE EXPENSE / CUSTOMER [2,3]
 
$
211

$
207

$
206

$
204

$
202

$
206

$
200

$
196

$
196

$
194

WEIGHTED AVERAGE COST OF GAS (per therm) [2]
 
$
0.31

$
0.44

$
0.37

$
0.44

$
0.55

$
0.42

$
0.42

$
0.58

$
0.62

$
0.71

CONSTRUCTION EXPENDITURES (in thousands) [2]
 
$
682,869

$
560,448

$
457,120

$
438,289

$
350,025

$
314,578

$
308,951

$
305,542

$
188,379

$
212,919

[1] At December 31,
 
 
 
 
 
 
 
 
 
 
 
[2] For the year ended December 31,
 
 
 
 
 
 
 
 
 
 
 
[3] Includes non-service components of net periodic pension and other post-retirement benefit cost in calculation.
 
 
 
 
 

GAS OPERATIONS SEGMENT
Transportation Volumes and Operating Margin
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DEKATHERMS
 
OPERATING
 
 
 
DEKATHERMS
 
OPERATING
DIVISION/CUSTOMER TYPE
 
 
TRANSPORTED
 
MARGIN
 
 
 
TRANSPORTED
 
MARGIN
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Twelve Months Ended 12-31-18
 
 
 
Twelve Months Ended 12-31-17
Southern Nevada
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
9,907,541

 
$
10,445,785

 
 
 
9,580,642

 
$
10,986,943

 
Industrial
 
 
 
 
5,379,474

 
4,530,144

 
 
 
5,176,130

 
4,674,822

 
Power Generation
 
 
 
45,807,455

 
14,988,240

 
 
 
40,529,032

 
15,504,665

          Southern Nevada Totals
 
 
 
61,094,470

 
$
29,964,169

 
 
 
55,285,804

 
$
31,166,430

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Northern Nevada (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
1,957,306

 
$
1,477,370

 
 
 
2,007,146

 
$
1,450,850

 
Industrial
 
 
 
 
6,838,353

 
3,010,433

 
 
 
6,756,991

 
3,019,937

 
Power Generation
 
 
 
6,602,686

 
3,293,423

 
 
 
4,526,184

 
2,767,807

 
Resale
 
 
 
 
9,747,072

 
29,403,399

 
 
 
10,141,671

 
29,552,987

          Northern Nevada Totals
 
 
 
25,145,417

 
$
37,184,625

 
 
 
23,431,992

 
$
36,791,581

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Includes transportation customers of Paiute Pipeline Company, a wholly owned subsidiary of Southwest Gas Corporation.



GAS OPERATIONS SEGMENT
Transportation Volumes and Operating Margin
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DEKATHERMS
 
OPERATING
 
 
 
DEKATHERMS
 
OPERATING
DIVISION/CUSTOMER TYPE
 
 
TRANSPORTED
 
MARGIN
 
 
 
TRANSPORTED
 
MARGIN
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Twelve Months Ended 12-31-18
 
 
 
Twelve Months Ended 12-31-17
Southern Arizona
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
1,458,500

 
$
3,937,823

 
 
 
1,376,307

 
$
3,811,908

 
Industrial
 
 
 
 
1,680,790

 
1,487,490

 
 
 
1,820,390

 
1,360,157

 
Power Generation
 
 
 
1,652,109

 
3,546,246

 
 
 
1,716,488

 
3,706,291

 
Irrigation
 
 
 
 
791,242

 
2,073,329

 
 
 
858,689

 
2,086,022

          Southern Arizona Totals
 
 
 
5,582,641

 
$
11,044,888

 
 
 
5,771,874

 
$
10,964,378

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Central Arizona
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
4,419,333

 
$
12,478,553

 
 
 
4,641,724

 
$
12,513,797

 
Industrial
 
 
 
 
4,275,060

 
10,371,284

 
 
 
4,076,645

 
9,844,410

 
Power Generation
 
 
 
846,351

 
1,208,851

 
 
 
394,842

 
746,871

 
Irrigation
 
 
 
 
2,353,179

 
5,070,181

 
 
 
2,459,152

 
4,239,177

          Central Arizona Totals
 
 
 
11,893,923

 
$
29,128,869

 
 
 
11,572,363

 
$
27,344,255

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




GAS OPERATIONS SEGMENT
Transportation Volumes and Operating Margin
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DEKATHERMS
 
OPERATING
 
 
 
DEKATHERMS
 
OPERATING
DIVISION/CUSTOMER TYPE
 
 
TRANSPORTED
 
MARGIN
 
 
 
TRANSPORTED
 
MARGIN
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Twelve Months Ended 12-31-18
 
 
 
Twelve Months Ended 12-31-17
Southern California
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
576,103

 
$
1,053,074

 
 
 
481,364

 
$
698,011

 
Industrial
 
 
 
 
295,628

 
571,135

 
 
 
249,678

 
345,558

 
Power Generation
 
 
 
466,923

 
654,417

 
 
 
647,589

 
661,747

          Southern California Totals
 
 
 
1,338,654

 
$
2,278,626

 
 
 
1,378,631

 
$
1,705,316

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Company (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
18,318,783

 
$
29,392,605

 
 
 
18,087,183

 
$
29,461,509

 
Industrial
 
 
 
 
18,469,305

 
19,970,486

 
 
 
18,079,834

 
19,244,884

 
Power Generation
 
 
 
55,375,524

 
23,691,177

 
 
 
47,814,135

 
23,387,381

 
Resale
 
 
 
 
9,747,072

 
29,403,399

 
 
 
10,141,671

 
29,552,987

 
Irrigation
 
 
 
 
3,144,421

 
7,143,510

 
 
 
3,317,841

 
6,325,199

          TOTAL COMPANY
 
 
 
105,055,105

 
$
109,601,177

 
 
 
97,440,664

 
$
107,971,960

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Includes transportation customers of Paiute Pipeline Company, a wholly owned subsidiary of Southwest Gas Corporation.