UniSource Rate Hikes Hit Havasu Businesses Hard Amid Skyrocketing Costs

Recent rate hikes from UniSource have left Lake Havasu City businesses, particularly in the hospitality sector, grappling with increased electricity bills amid already rising operational costs. The impact is being felt strongly by residential customers as well, prompting petitions and formal complaints against the increases.

In a city where the economy heavily relies on tourism, organizations like Go Lake Havasu are vital for supporting local businesses through marketing efforts. Lisa Krueger, interim CEO of Go Lake Havasu, noted that sharing office space with the Lake Havasu Area Chamber of Commerce and the Partnership for Economic Development has helped manage utility costs. Nonetheless, she expressed concern about the broader implications of rising utility expenses on the hospitality and tourism industries.

Business owners are reacting to these changes. Regan Ross, who owns The KAWS, indicated that despite being on a budget billing plan, their electricity bill is set to increase by approximately $250. The potential increase would reach around $1,000 without budget billing. Similarly, College Street Brewery’s General Manager, Stephanie Martin, reported that their summer electricity costs surged from $8,000 to $12,000.

These utility hikes arrive alongside skyrocketing food supply expenses that are forcing businesses to raise prices to retain profitability. Ross remarked, “We’ve already seen a significant increase in supply and product costs, which impacts our pricing.” Martin echoed this sentiment, stating that continuous hikes in labor and food costs necessitate price adjustments as well.

Faced with these challenges, many establishments are taking steps to mitigate costs. Ross mentioned that at The KAWS, energy conservation efforts are limited due to operational needs. “We already have LED lighting; we can’t unplug our refrigeration,” he noted. On the other hand, Martin indicated that College Street Brewery plans to switch to solar energy and has been managing their air conditioning usage more conservatively this summer.

Additionally, Krueger’s team at the Chamber of Commerce is implementing energy-efficient practices, such as regulating thermostat settings and turning off lights after hours. They are also navigating operational challenges, having remained partially open this summer while waiting for the installation of a new air conditioning unit, aimed at improving efficiency and reducing future costs.