Electric customers of UniSource Energy Services in Santa Cruz and Mohave counties are facing a 14% bill increase as the sister company to Tucson Electric Power seeks new rates for the first time in seven years.
UniSource’s request, filed Friday with the Arizona Corporation Commission, would boost overall revenues by 10.4% and increase the average monthly bills of typical residential customers by $18.52 when new rates take effect in 2024.
UniSource says its proposed rates would help cover the cost of investments made since 2014, including new substations, transmission and distribution system upgrades, and critical maintenance and improvements for generating resources. The new rates also would reflect higher fuel and energy prices UniSource has paid, the company said.
“Although we’ve had to pass along higher market energy prices in recent years, I’m proud we’ve been able to hold the line on our own expenses for so long,” said Susan Gray, UniSource’s president and CEO.
UniSource said it limited the average annual growth of its operations and maintenance costs to less than 2.1% between 2015 and 2021, while inflation totaled 2.5%, and peak demand on its energy grid has grown 16% since 2014.
The projected increase would raise the average monthly bill to $148.58, but the impact will vary based on usage, and customers’ total bills also will be affected by changes to pass-through fuel and purchased-power charges, UniSource said.
UniSource is seeking to offer an $18 monthly discount — up from $16 currently — for qualifying low-income customers whose household income does not exceed 200% of the federal poverty level.
The proposed rates also would eliminate transaction fees for most credit card payments and for cash payments made at third-party payment processors, the company said.
UniSource says its proposed rates support investments that will help the company manage long-term energy costs, reduce dependence on purchased power and build a better-balanced energy portfolio.
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