While rising bills may seem daunting for Uni- source customers in
Mohave, Yavapai, Coconino and Navajo counties in
northern Arizona and Santa Cruz County in
southeastern Arizona, those ratepayers are by no
means alone. Natural-gas prices nationwide are
soaring due to tight supplies.
Valley utility customers won't be spared,
either. Southwest Gas is seeking a rate increase
for its 500,000 Valley customers, and Salt River
Project and Arizona Public Service Co. want to
shift costs to ratepayers because the higher
natural- gas prices make it more expensive to
generate electricity.
Even consumer advocates say there is little they
can do to shield customers from the rising
natural-gas prices gripping the nation.
"We can't overcome the tidal wave of increasing
pressure on prices that everybody is
experiencing," said Stephen Ahearn, director of
Arizona's Residential Utility Consumer Office.
"These companies do not make a profit on
increasing gas prices."
Unisource wanted an immediate 40 percent
increase, but Commissioner Kris Mayes suggested
a gradual approach that included a 26 percent
increase during the winter months. The amount of
the surcharge gradually builds through spring
and summer months when heating bills are
typically lower. The move is designed to shield
Arizonans from sticker shock by charging the
higher rates during the winter.
"The 26 percent increase is bad enough," Mayes
said. "Having a 40 percent increase would have
been a crushing blow this winter."
Unisource officials say that the approach will
create a growing deficit because it will be
forced initially to pay higher natural-gas costs
than the amount they are allowed to pass along
to consumers. An existing deficit of nearly $7
million will swell beyond $20 million next year.
"We understand the commission is attempting to
prevent rate shock this winter," said Joe
Salkowski, Unisource spokesman in Tucson. "It
does not collect all of our gas costs for this
winter."
Reach the reporter at
ken.alltucker@arizonarepublic.com or (602)
444-8285.