TUCSON – New rates for UniSource Energy Services natural gas service will take effect March 1 to help cover rising costs, provide more help to low-income customers, and support over a decade of investment in safe, reliable service.
The new rates, approved Feb. 19 by the Arizona Corporation Commission, reflect the company’s first base rate increase since 2012. They include a higher basic service charge – $12.05, up from $10 – and higher usage-based rates that are expected to increase the average monthly bills of residential customers with typical usage by about $5. The impact will vary with usage and is likely to be higher in colder weather.
Customers can mitigate the impact of higher rates by managing their energy usage. UniSource also provides resources that help customers pay their bills, from payment arrangements to short-term assistance for qualifying customers.
“We’re glad we were able to hold our base rates steady for so long,” said UniSource President Erik Bakken. “We work hard to keep service affordable for our customers by limiting our long-term costs and maintaining efficient, effective operations.”
UniSource will offer increased support to low-income customers through its CARES program. Improvements include:
Increasing the monthly bill credit from $3 to $5, more than covering the increased basic service charge.
Providing a year-round 40 percent discount on the Purchased Gas Adjustor (PGA), which is adjusted over time to pass along the cost of natural gas without any markup.
The ACC also approved changes that will allow annual adjustments to customer rates, supporting stable bills and more gradual rate changes for customers. The Annual Rate Adjustment Mechanism (ARAM) will be adjusted annually starting next year to reflect historical changes in the cost of serving customers’ growing energy needs.
These costs could include capital improvements such as pipeline replacement and safety-related projects, as well as operating and maintenance expenses, taxes, debt and other costs. Customers and other interested parties will still have opportunities to review and file public comments about these adjustments before any proposed changes receive final approval. The ARAM will allow for both increases and decreases in customer rates.
Current natural gas rates, which took effect in 2012, do not reflect more than $260 million UniSource has invested since 2010 to maintain reliable service for customers. New rates will allow UniSource to recover its investments and help fund future improvements, including $150 million in new business requirements and system reinforcement through 2029. New rates will help UniSource serve the expanding energy needs of its growing customer base, which has increased by 14.5 percent since 2010.
UniSource has achieved high levels of service and safety in recent years. The company responded promptly to nearly 390,000 calls from its gas and electric customers last year, with the average call answered in about one minute. UniSource also achieved excellent scores on annual pipeline safety audits and posted a considerably lower rate of recordable injuries than the industry average.
UniSource provides natural gas service to more than 168,000 customers in Northern and Southern Arizona. It also provides electric service to more than 105,000 customers in Mohave and Santa Cruz Counties. For more information about UniSource, visit uesaz.com. UniSource and its parent company, UNS Energy, are subsidiaries of Fortis, Inc., a leader in the North American regulated electric and gas utility industry. For more information visit fortisinc.com.
