COMMISSION NEWS

ARIZONA CORPORATION COMMISSION
1200 W. WASHINGTON STREET
PHOENIX, AZ 85007

TO: EDITORS, NEWS DIRECTORS

DATE: July 13, 1998

FOR: IMMEDIATE RELEASE

CONTACT: Perry Baker (602) 542-0844


ACC Reaches Tentative Agreement with Southwest Gas Corporation

The Arizona Corporation Commission will review the details of a proposed settlement reached with Southwest Gas stemming from the January 15, 1998 explosion that destroyed the Strapped Jock athletic shoe store, 3rd Street and Indian School. The settlement will be considered by the three Commissioners TOMORROW, JULY 14th, beginning at 10:00am, in the Commission's Hearing Room, 1200 West Washington, Phoenix, Arizona.

The proposed settlement includes the following provisions: Southwest Gas will accept responsibility for numerous safety violations that were alleged by the ACC. In addition, they will be accessed a penalty of 350,000 dollars, of which 250,000 will be deferred IF the company reaches certain specific safety goals and objectives over the next 16 months. (Example of safety goals: Institute a working, rapid shut-off system for the Central Phoenix area; Institute a working, rapid shut-off system for the Tucson area; Implement a coordinated, centralized emergency response plan, with a single supervisor in charge during an emergency, continuing until the service outage has been restored.

The ACC safety staff is recommending that this proposed settlement be accepted and adopted by the Commissioners.