UES Seeks New Electric Rates To Cover Investments In Service Quality

UES is asking for new rates to be in place in early 2014, more than three years after the most recent increase. Other rate components such as renewable energy and energy efficiency surcharges required to satisfy state-mandated programs have contributed to customer bills during that period. The ACC will determine when new rates would take effect.

UES’ proposal includes a new funding plan for energy efficiency programs that reflects the company’s focus on energy efficiency as a low-cost resource. Customers could partially offset monthly bill increases associated with higher base rates by participating in one or more of the company’s energy efficiency programs.

UES’ proposed rates include a mechanism to help ensure the recovery of its system costs. A portion of these costs is recovered through rates that generate revenue based on consumption levels, which are reduced by state-mandated energy efficiency and renewable power programs. The mechanism would be adjusted annually to account for the reduced energy sales that result from these programs. A similar mechanism has already been authorized for other Arizona utilities.

UES is also proposing a new cost adjustment mechanism that will allow UES to recover costs associated with the transmission of electric power to customers. A similar mechanism has already been authorized for use in Arizona.

UES’ rate-increase request will be reviewed by the ACC, a five-member panel of elected officials that sets utility rates and oversees other aspects of the company’s operations. That review typically includes public hearings before an administrative law judge who recommends a proposed order for the ACC. The review process typically takes about a year.

Additional details about UES’ rate proposal are available at uesaz.com, including frequently asked questions and a copy of the application.

UniSource Energy Services, a subsidiary of UNS Energy Corporation (NYSE: UNS), provides electric service to about 91,000 customers in Mohave and Santa Cruz counties. The company also provides natural gas to more than 146,000 customers in Mohave, Yavapai, Coconino, Navajo and Santa Cruz counties. For more information, visit uesaz.com. To learn more about UNS Energy, visit uns.com.

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