Beatrice Lang
UniSource Energy Services and Mohave Electric Company are two electric companies that serve customers in Mohave County, Arizona. In recent years, UniSource has come under fire from its customers for high electricity bills, with some protesting the sharp increase in rates. On the other hand, Mohave Electric Company provides electricity to the residents of Mohave County and parts of La Paz County, Arizona, with no recent reports of customer dissatisfaction regarding rates. This begs the question: which electric company is cheaper, Mohave or UniSource?
Explore related products
What You'll Learn
- UniSource Energy Services customers in Santa Cruz and Mohave counties face a 14% bill increase
- UniSource Energy Services provides four unique plans to help customers reduce their bills
- UniSource Energy Services' base rates have remained unchanged since August 2016
- UniSource Energy Services' Budget Billing program has been adopted by 9% of its customers
- UniSource Energy Services' CARES program offers discounts to low-income customers
UniSource Energy Services customers in Santa Cruz and Mohave counties face a 14% bill increase
UniSource Energy Services, a subsidiary of Fortis, Inc., provides energy to over 243,000 customers across Arizona. In July 2022, it was reported that UniSource Energy Services customers in Santa Cruz and Mohave counties would face an average home bill increase of nearly $14, or about 12%, starting in February 2024. This increase was approved by the Arizona Corporation Commission, allowing UniSource to recover some of the costs of new system investments.
UniSource Energy Services had not increased its base rates since August 2016, and the new rates reflected the company's investments in maintaining reliable service. These investments included new poles, transformers, power lines, security enhancements, and technology upgrades. Additionally, UniSource's customers in Santa Cruz and Mohave counties had experienced a significant increase in peak energy demand, driven by hotter weather and the addition of new customers.
The rate increase was expected to impact customers differently, with higher bills during hotter months and lower bills when the weather cooled down. UniSource also offered a Customer Assistance Residential Energy Support (CARES) program, providing discounts to customers with household incomes of up to 200% of the federal poverty level.
In February 2024, electric customers of UniSource Energy Services in Santa Cruz and Mohave counties experienced an average 14% bill increase. This increase was attributed to a combination of factors, including record summer heat and a significant rate increase earlier in the year. The high temperatures magnified the impact of the rate increase, resulting in even higher bills for customers.
While UniSource Energy Services cited the need to recover costs for system improvements and higher operating expenses, customers in Mohave County expressed their frustration over the unexpected surge in their power bills. The Arizona Corporation Commission received complaints from ratepayers, but ultimately upheld the rate increase, acknowledging UniSource's entitlement to recoup its system investments.
Electric Companies in Siargao Island: Who Powers Paradise?
You may want to see also
Explore related products
UniSource Energy Services provides four unique plans to help customers reduce their bills
UniSource Energy Services provides energy to more than 243,000 customers across Arizona. The company has been criticised for its high rates, with customers in Mohave County protesting a 14% bill increase in February 2024, which can be even higher during the summer. However, UniSource has defended its pricing by stating that it is their first base-rate increase in more than seven years, and the money is required to recover the millions spent on system improvements to ensure reliable service.
Time-of-Use Rates
Two of the plans include time-of-use rates that offer discounts for usage during off-peak hours. Customers can shift their energy usage to off-peak hours to take advantage of lower rates and reduce their monthly bills.
Demand Charge
Two of the plans pair reduced energy charges with a "demand" charge. This rewards customers who can limit their concurrent use of large appliances during on-peak hours. By avoiding using a lot of energy during peak hours, customers can lower their overall energy costs.
System Reliability Benefit (SRB)
UniSource has introduced a new surcharge called the System Reliability Benefit (SRB) to help recover the costs of major system improvement projects. This surcharge will be applied to new generating projects costing at least $25 million, allowing UniSource to add new generating assets and reduce its reliance on wholesale power purchases.
Customer Assistance Residential Energy Support (CARES) Program
UniSource offers a discount program called CARES for customers with household incomes up to 200% of the federal poverty level or $5,000 monthly income for a four-person household. About 10% of the utility's customers are on this discount rate, and they must reapply annually.
In addition to these four unique plans, UniSource also provides payment assistance and a low-income discount for customers struggling to pay their bills. They also work with community partners to provide emergency bill payment assistance to qualifying customers.
Electricity Companies: Austin's Top Energy Providers
You may want to see also
Explore related products
UniSource Energy Services' base rates have remained unchanged since August 2016
UniSource Energy Services (UES) provides energy to more than 243,000 customers across Arizona. It also provides electric service to more than 101,000 customers in Mohave and Santa Cruz Counties. In February 2024, UniSource introduced new electric rates for its customers to help cover rising costs and support ongoing investments in safe, reliable service.
Despite the new rates, UniSource's base rates have remained unchanged since August 2016. They are based on 2014 costs. This means that for seven and a half years, UniSource did not increase its base rates. The company has passed along energy cost changes without markup. The new rates reflect the more than $330 million that UniSource has invested since 2014 to maintain reliable service. These investments include new poles, transformers, power lines, and other equipment, as well as security enhancements and technology upgrades.
UniSource's President and CEO, Susan Gray, stated that the company needed to increase its rates to support its ongoing investments in safe and reliable service. The new rates will help UniSource serve the increasing energy needs of growing communities in Mohave and Santa Cruz counties. Customers' peak energy demand has increased by 16% since 2014, driven by hotter weather and the addition of more than 8,000 customers.
The average monthly bills of typical residential customers on UniSource's Basic pricing plan will increase by $13.68, or about 12%, under the new rates. This impact will vary with seasonal usage and is likely to be higher during hot weather and lower in cooler months. UniSource offers resources to help customers manage energy use and find payment assistance.
Hiring Electricians: The Process and What to Expect
You may want to see also
Explore related products
UniSource Energy Services' Budget Billing program has been adopted by 9% of its customers
UniSource Energy Services (UES), a subsidiary of Fortis, Inc., provides energy to over 243,000 customers across Arizona. The company has implemented a Budget Billing program that allows customers to pay the same amount each month, levelling out the typically higher summer bills due to increased air conditioning usage. As of August, approximately 9% of UES customers, or 8,848 individuals, had signed up for the Budget Billing program.
UES customers in Mohave County have protested high bills, with an average 14% increase in February 2024, and even higher summer bills. The company attributed these increases to system improvements and the recovery of costs for purchased power and fuel. In response, the Arizona Corporation Commission (ACC) approved a controversial surcharge, allowing UES to start recouping some costs of new system investments.
UES serves about 80,000 electric customers in Mohave County and 19,000 in Santa Cruz County. The company's base rates have remained unchanged since August 2016, based on 2014 costs. However, with customers' peak energy demand increasing by 16% since 2014 due to hotter weather, UES has invested in new poles, transformers, power lines, and other equipment to maintain reliable service.
UES offers various billing and payment options, including the Budget Billing program, to assist customers in managing their energy costs. The company also provides payment assistance and low-income assistance programs, such as the Customer Assistance Residential Energy Support (CARES) program, which offers discounts to eligible customers.
General Electric's Goal: Every Business Unit a Leader
You may want to see also
Explore related products
UniSource Energy Services' CARES program offers discounts to low-income customers
UniSource Energy Services provides energy to more than 243,000 customers across Arizona. It is a subsidiary of Fortis, Inc., which owns utilities that serve over 3 million customers across Canada, the US, and the Caribbean. UniSource Energy Services' sister company, Tucson Electric Power Co., serves about 19,000 electric customers in Santa Cruz County and 80,000 in Mohave County.
UniSource Energy Services' customers have protested high bills, with an average 14% bill increase in February 2024, and even higher summer bills. The company has justified these high rates by citing the need to recover millions of dollars spent on system improvements to ensure reliable service.
To assist customers facing financial challenges, UniSource Energy Services offers the Customer Assistance Residential Energy Support (CARES) program. This program provides monthly discounts for low-income customers struggling to pay their gas or electric bills. Specifically, electric customers with a household income of up to 200% and gas customers with a household income of up to 150% of the federal poverty level (FPL) may qualify for the CARES program. This program is especially beneficial for low-income customers who require the use of life support equipment in their homes.
The CARES program is just one of UniSource Energy Services' initiatives to support its customers. The company also offers extended payment arrangements, payment extensions, and other forms of assistance to customers facing financial difficulties. Additionally, UniSource partners with Community Action and other agencies to provide energy efficiency measures and improvements to eligible customers through the Low-Income Weatherization Program.
Rock Hill Electric Company: Powering the City
You may want to see also
Frequently asked questions
UniSource Energy Services has increased its rates to recover the costs of system improvements and higher operating costs since its last rate case in 2015. The company has spent around \$300 million on system upgrades to ensure reliable service.
UniSource's CARES program offers discounts to customers with household incomes of up to 200% of the federal poverty level, which is around \$5,000 monthly income for a family of four. About 10% of UniSource's customers are on this discount rate.
UniSource offers four unique plans that allow customers to reduce their bills by changing their energy usage habits. Two of these plans include time-of-use rates that offer discounts for usage during off-peak hours.
Yes, Mohave County is also served by Tucson Electric Power Co., a sister company of UniSource.
