ACC Urges Review of UniSource’s Controversial 12% Rate Hike Amid Havasu Residents’ Outrage Over High Electric Bills

Arizona Corporation Commissioner Lea Marquez Peterson is advocating for a reconsideration of the recent 12% rate hike authorized for UniSource Energy Services, following substantial complaints from Lake Havasu City residents regarding their soaring electric bills in July. This complaint was officially lodged with the Arizona Attorney General’s Office.

Peterson, who initially supported the rate increase in January, is now urging the commission to re-evaluate its decision after numerous residents reported exorbitant summer electricity charges in Havasu and Kingman.

“I have received many communications from ratepayers in the Lake Havasu and Kingman area, which is served by UniSource,” Peterson stated. “They are experiencing rate shock from higher-than-usual summer electricity bills. While I have informed them about our disconnection moratorium and available utility assistance programs, this situation has prompted me to reflect on the rate structure’s design.”

Peterson proposes that rate increase percentages for Havasu customers should be larger during winter months and smaller in the summer to mitigate the financial burden. If approved, such a change would not be retroactive due to commission rules.

In a previous statement, Commissioner Anna Tovar expressed concerns about the increase. She warned that the rate hike would add approximately $18 to average monthly electric bills, along with additional adjustments that could further impact residential customers negatively.

“Energy costs are skyrocketing,” Tovar remarked on January 17. “We are losing sight of the customers at a time when affordability matters most.”

Tovar opposed several aspects of the recent UniSource rate case, highlighting a significant difference in rate increases between residential and commercial consumers. Under the current hike, residential rates could rise by as much as 13%, while commercial and industrial bills would increase by a lesser amount of 6.75%.

“We need to be looking for ways to relieve the pressure on residential consumers,” Tovar added in January. “I did not support this decision because I believe it makes residential customers more vulnerable.”

Peterson has invited stakeholders to submit suggestions to alleviate the financial strain caused by recent high summer bills for UniSource customers. Comments can be filed electronically on the Arizona Corporation Commission’s docket.