WHO WE ARE DIVERSIFIED UTILITY REGULATED BUSINESS UNREGULATED Natural gas distribution A diversified utility Utility infrastructure services to 2 million+ services provider for services in 28 markets customers in Arizona, customers across across the United California & Nevada North America States and Canada Reflecting our core values, we are very proud of our commitment to strengthen 1,158 $44M the communities we serve $1.2M Nevada employees Taxes to 86 Nevada nonprofits Note: 2018 annual figures 3 SUSTAINABLE BUSINESS PRACTICES LED lighting Energy efficient windows and coverings Computerized HVAC Solar canopies Energy Star® rated bill management system Replace percentage of fleet annually Add CNG and alternative fuel vehicles CNG fueling stations From fleet and facilities Energy independence and economic growth GHG Down 27.44% fueled by natural gas from 2005 to 2017 -Source: EIA, Monthly Energy Review March 2018 Safe, reliable natural gas helps meet energy Renewable natural gas, demand affordably hydrogen and synthetic gas continue to decarbonize the pipeline 5 5 5 COMPRESSED NATURAL GAS (CNG) 14.5M therms delivered to Nevada customers in 2018 represents the emissions reduction equivalency of taking Renewable natural gas represents a significant opportunity 16.5K to further decarbonize the transportation sector in Nevada vehicles off the road One vehicle represents the reduction of GHG emissions equivalent to 500 passenger vehicles RENEWABLE NATURAL GAS (RNG) SB 154 –RNG Legislation • Investment in RNG 90% • Purchase of RNG as part of gas of Southwest Gas customers see supply portfolio RNG as environmentally friendly • Aspirational targets as percentage of gas supply RNG’s Potential “Adding 25% RNG into the existing natural “The research indicates that RNG gas system and delivering it to heat homes delivered to residential and commercial directly (versus using it to generate buildings could reach similar GHG electricity), the region can achieve its emissions reduction targets in 2030 as climate goals without a substantial build appliance electrification.” out of new power plants.” -SoCalGas: Analysis of the role of Gas for a Low-Carbon California Futureby Navigant CATALYST FOR ECONOMIC DEVELOPMENT Makes Nevada Communities SB 151 Ideal Companion Competitive Paved the Way for Renewables Availability of natural gas in site Allows for expansion of natural Available when the sun is not selection criteria gas service to unserved shining and the wind is not Balanced energy solutions that communities blowing, natural gas is reliable are clean, safe and affordable Specifically, for the purpose of Cleaner heating source than are attractive aiding in economic development wood or propane Natural gas service arrived in RNG will continue to decarbonize Mesquite, NV in 2019 the pipeline PUCN approved expansion to Spring Creek, NV in 2019 NATURAL GAS IS A MAJOR CONTRIBUTOR 3.0 11.0 TO REDUCTIONS IN CO2EMISSIONS “U.S. carbon dioxide (CO2) emissions are near 20-year lows, and a major reason for that progress is the development and use of America’s abundant natural gas resources. EIA projects energy-related CO2 emissions to be substantially below 2005 levels by 2040 thanks, in large measure, to a continued shift to less carbon-intensive fuels, such as natural gas.” Emissions (Million Metric Tons of Carbon Dioxide) - American Petroleum Institute Source: U.S. Energy Information Administration Source: University of California, Berkeley CoolClimate Calculator 2020 (https://coolclimate.berkeley.edu/calculator). Blended average household CO2e emissions data from Las Vegas area zip codes and converted annual CO2e tons to average daily pounds. DIRECT USE OF NATURAL GAS 91% energy efficiency The most efficient, cost effective Direct Use and environmentally friendly use of natural gas is to use it directly at the appliance in your home or business. Converting to Electricity 36% 91% 83.5% 71% 76% Prefer natural gas DO NOT support Consider natural gas Consider natural gas as an energy choice removal of natural gas a clean energy source more affordable from homes Source: Southwest Gas Customer Survey December 2019, represents average of NNV and SNV responses 12 $160 $40 $70 $107 $112 Natural Water Mobile TV (Cable/Satellite) Electric Gas Phone Sources: • Natural Gas $40 – 2018 Southwest Gas average monthly residential bill • Water $70 – Circle of Blue (www.circleofblue.org); Price of Water 2018: 3.3 Percent Increase in 30 Large U.S. Cities • Cable/Satellite TV $107 – Fortune (www.fortune.com); Why the Price of Cable TV Stopped Going Up So Fast This Year • Electric $112 – U.S. Energy Information Administration (www.eia.gov); Electricity data • Mobile Phone – Consumer Reports (https://www.consumerreports.org/) May 2019 based on average cell phone bill for 2 smartphones 13 Policy-driven electrification would increase Reductions from policy-driven the annual energy-related costs of electrification could reduce GHG converted households emissions by only 38 to 46% 1 to 1.5% meaning the average household of U.S. GHG by 2035 would pay an additional $750 to $910 per year Source: American Gas Association - A Thoughtful Pathway Towards U.S. Emissions Reductions, 2018 14 SAFETY, JOBS AND GHG REDUCTION BILL Safety Jobs GHG Reduction Allows for the replacement of SWG invests over $1 billion per Greatly reduces potential for aging natural gas infrastructure year in NV including $ 40 million methane emissions by on an accelerated basis a year on these infrastructure modernizing pipeline Enhances the safety and projects Proactively removes vintage pipe reliability of the distribution Investment has created more and replaces it with new, safer system to the benefit of all than 1,500 jobs in the state material designed to prevent customers Bill would allow workers on greenhouse gas emissions future projects to be paid prevailing wages Southwest Gas Foundation $2.1M $1,153 81% Employee Average Employee donations in employee participation 2018 donation in 2018 in 2018 Bill assistance programs 8,000 Employee volunteer hours (2016-2018) 16 Southwest Gas is committed to making a positive impact on our environment, community, customers and employees..