Havasu Electricity Bills Surge: Unpacking the Surprising Rate Hike and Surcharges

Residents in Lake Havasu City are grappling with rising electricity bills due to recent surcharges and a rate hike approved by the Arizona Corporation Commission (ACC). This marks the first rate increase from UniSource in seven years, initiated amidst rising energy demands in Mohave and Santa Cruz Counties.

In November 2022, UniSource proposed changes to their rates, which included significant investments exceeding $330 million in infrastructure over the past seven years. The proposal was submitted to the ACC for evaluation and approval.

As the approval process unfolded, customers began feeling the effects as surcharges were introduced in August 2023. An average increase of approximately $11 per month was anticipated, though some customers experienced much larger hikes, particularly during the intense summer heat.

Public dissatisfaction led to several meetings last summer, where customers voiced their concerns. UniSource conducted additional public hearings in Tucson in September 2023. The feedback collected during these sessions was forwarded to the ACC for consideration.

In January 2024, the ACC approved the proposed increases by a 4-1 vote, with the new rates set to take effect on February 1. Commissioner Anna Tovar stood alone in opposition, citing that the increase would unduly burden residential customers amid soaring energy prices.

“I cannot support a rate increase that puts undue burden on residential customers,” Tovar stated in a news release on January 17, emphasizing concerns over affordability during a challenging economic period.

Despite the initial projections, many customers reported even steeper increases in their bills. The combined impacts of the rate hike and surcharges have left numerous Lake Havasu City customers in difficult financial situations.

The mission of the ACC is to ensure affordable and reliable utility services, covering not just electricity but also gas, water, and wastewater sectors. The commission is composed of five members, including the chair, with terms lasting four years.

Current commissioners include Chair Jim O’Connor, Nick Meyers, Lea Márquez Peterson, Kevin Thompson, and Anna Tovar. Three seats on the commission are up for election in the upcoming general election on November 5, affecting O’Connor, Tovar, and Márquez Peterson.