A natural gas utility serving over 2 million customers in Arizona, Nevada, and parts of California, Southwest Gas, has been fined $2 million by Arizona regulators due to concerns about piping degradation in high-temperature environments. The Arizona Corporation Commission announced a consent agreement with Southwest Gas, imposing the civil penalty and mandating increased inspections.
The issue revolves around Driscopipe polyethylene (PE) M7000 and M8000 piping, identified by federal regulators in 2012 as susceptible to degradation in hot ambient temperatures. Reports of degradation and resulting leaks have primarily surfaced in the Mohave Desert region spanning Arizona, California, and Nevada.
An investigation in Arizona revealed that Southwest Gas had failed to adequately map the locations of this type of piping. The utility estimates that there are over 10,000 miles of the problematic piping in Arizona and has devised a plan to prioritize replacement or abandonment in high-risk areas.
The consent agreement follows two incidents in 2021, including an explosion in Chandler that injured four individuals. In addition to addressing unmapped areas with defective piping, Southwest Gas is now required to promptly report any leaks and conduct more frequent leak patrols throughout the year.
An amendment proposed by Corporation Commissioner Kevin Thompson stipulates that Southwest Gas must seek regulatory approval for any rate adjustments aimed at recovering costs associated with the agreement. Thompson emphasized the importance of upholding public safety and ensuring accountability on the part of the utility, urging a fair distribution of responsibility between customers and the utility.
