COMMISSION NEWS

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

TO: EDITORS, NEWS DIRECTORS

DATE: July 15, 1998

FOR: IMMEDIATE RELEASE

CONTACT: Perry Baker (602) 542-0844


CORPORATION COMMISSION FINES SOUTHWEST GAS FOR JANUARY EXPLOSION

Phoenix, AZ - By a unanimous vote, the Arizona Corporation Commission has accepted the terms of a settlement with Southwest Gas stemming from the January 15, 1998 explosion that destroyed the Strapped Jock athletic shoe store, 3rd Street and Indian School.

"This settlement is a major victory for increased public safety throughout the state," noted Commissioner-Chairman Jim Irvin. " Not only has Southwest Gas accepted responsibility for the safety violations that were associated with this particular incident, they have agreed to implement measures that will help prevent such an accident from occuring in the future."

The settlement requires that Southwest Gas accept responsibility for 15 safety violations uncovered by ACC inspectors, pay a $100,000 penalty to the ACC's Pipeline Safety Office, and, commit to the completion of over $1000,000 worth of safety improvements to their system in the Phoenix and Tucson metro areas within 16 months. If they do not make the upgrades within the specified time frame, the company faces additional penalties of up to $250,000. Furthermore, the settlement states that the penalties cannot be passed along to the company's ratepayers,

(Pls. note: This action today does not have any bearing on any private legal action that Southwest Gas and the owners of various businesses damaged in the explosion may be involved in.)