NPL Construction Co. ("NPL"), a wholly-owned subsidiary, is a full-service underground piping contractor that provides utility companies with trenching and installation, replacement, and maintenance services for energy distribution systems. NPL operates in 19 major markets nationwide.

Southwest continues to improve efficiencies to maximize shareholder returns. Appropriate rate designs and timely rate relief are critical to achieve allowable rates of return. Southwest received a $33.5 million rate increase for its Arizona rate jurisdiction, effective December 2008. Southwest received a rate increase of $3.2 million for its California rate jurisdictions, commencing January 2009. Southwest filed general rate cases in early 2009 for its Nevada and FERC-regulated jurisdictions, requesting increases of $30.5 million and $3.9 million, respectively. Both rate cases are scheduled to be completed, with new rates effective in 2009.

Southwest and its employees consistently exceed customer expectations, ensure the successful implementation of new technologies, work within approved budgets, and participate in public service.

Southwest remains focused on its core strategies: continue to work closely with regulatory bodies to improve the level and stability of revenues and cash flows; pursue sensible cost control; aggressively manage growth; maintain a highly trained, efficient, and motivated workforce; and evaluate strategic opportunities to grow both the regulated and non-regulated portions of Southwest.

In February 2009, the Southwest Board of Directors increased the annual dividend by $0.05, from $0.90 to $0.95 per share. Southwest has paid quarterly dividends continuously since going public in 1956.