Electric customers in Lake Havasu City will see their average monthly bill increase by $13.68 starting tomorrow. But one Arizona nonprofit says the increase could place a huge burden on residents who can least afford it.
Earlier this month, the Arizona Corporation Commission approved a proposed rate increase by UniSource Energy Services that was originally proposed for November 2022. As approved, the company's electricity rates will increase by 12% in Lake Havasu City and Nogales, but the company's discounts will not increase. Pricing plan for low-income earners.
The tax increase will affect more than 9,300 low-income households and individuals in Mohave and Santa Cruz counties, according to Phoenix-based anti-poverty group Wildfire.
As of December 2022, nearly 10% of UniSource's customers participate in the company's Customer-Assisted Home Energy Support Program, which provides low-income households with $16 off their monthly electricity bill. This discount applies to customers whose income equals less than 200% of his federal poverty level. The amount discounted on low-income customers' bills hasn't increased since the company last raised prices in 2016.
Wildfire officials continued to engage in discussions with the Corporation Commissioner and Unisource throughout the last year, proposing a tiered low-income rate structure that would allow for discounts of up to 25%. The commission voted 3-2 this month to maintain UniSource's $16 discount under the CARES program.
As of this year, up to 40% of UniSource customers in Lake Havasu City and Nogales could qualify for that discount, according to Wildfire Executive Director Kelly McGowan.
“This pandemic will impact thousands of people in Santa Cruz and Mohave counties who are already struggling to make decisions about where and how to spend their limited income,” McGowan said in a news release last week. We are deeply troubled by this two-punch.” “His first general rate increase in more than seven years at UniSource Energy Services is understandable, but there is no justification for not increasing low-income rate plans to give low-income ratepayers a chance to retain some. you can't.”
McGowan said the increased costs to UniSource customers over the past two years meant the financial situation would be more difficult, especially for residents in the service area, where poverty rates are high and there are many elderly people on fixed incomes.
Until this year, UniSource's fees were based on the company's 2014 costs and have remained unchanged since August 2016. UniSource has added more than 8,000 customers since then, a 16% increase at its peak, according to a company statement last year. Inflation increases energy demand and costs.
Company officials said earlier this month that the new rates will allow Unisource to continue meeting the energy needs of residents in Mojave and Santa Cruz counties while also addressing the company's more than $330 million in infrastructure investments over the past seven years. Ta.
February's rate increase follows the company's purchased electricity and fuel adjustment fee, which took effect in May. The surcharge was expected to increase the average customer's monthly bill by about 9%, but last year his UniSource customers saw their bills increase by hundreds of dollars during the region's high summer temperatures. Havasu encountered controversy due to its experience with
UniSource officials said the company is not legally allowed to profit from the surcharge, which will cover approximately 100 million yen in increased fuel and energy costs until it expires in December 2025. It will be used to recover $4 million.
