UniSource Sparks Debate: AZ Corporation Commissioner Urges Review of 2024 Rate Hike

Arizona Corporation Commissioner Lea Marquez Peterson has initiated a review of the recent 12% rate increase granted to UniSource Energy Services. This decision stems from numerous complaints lodged by Lake Havasu City residents, who experienced significant spikes in their electric bills this July. The joint complaints were directed to the Arizona Attorney General’s Office, highlighting the profound impact of the rate hike.

Despite having supported the rate increase in January, Peterson is now urging the commission to reconsider its stance due to the escalation in complaints from customers in Havasu and Kingman. “I have received many communications from ratepayers in the Lake Havasu and Kingman area,” she stated, acknowledging the rate shock felt by residents during the summer months. Peterson noted that while disconnection moratoriums and utility assistance programs are available, it has prompted her to reconsider the rate structure’s design.

In her proposal, Peterson suggested that rate increases for Havasu customers be adjusted, with higher rates during winter and reduced rates in the summer, aiming to ease the financial burden on residents. However, she clarified that any changes would not apply retroactively under current commission rules.

Commissioner Anna Tovar, who voted against the increase in January, had warned of the impending financial strain on average consumers, predicting an additional $18 on monthly bills. Her concerns about rising energy costs echoed throughout the community. “We are losing sight of the customers at a time when affordability matters most,” Tovar expressed in her statements at that time.

Tovar highlighted the disparity between the rate increases faced by residential versus commercial customers, with residential bills potentially increasing by as much as 13%, while commercial and industrial consumers would see a smaller adjustment of 6.75%. She emphasized the need to focus on alleviating financial pressures on residential customers, stating, “I did not support this decision because I believe it makes residential customers more vulnerable.”

In light of the ongoing scrutiny, Commissioner Peterson is inviting feedback from stakeholders regarding potential solutions to address the soaring summer bills experienced by UniSource customers. Comments can be submitted electronically to the Arizona Corporation Commission’s docket.