Press Release: Unisource Drops Demand Charge Proposal for Non-Solar Customers

Lake Havasu City, AZ – In Lake Havasu City this past month, hundreds of individuals spoke out against Unisource’s Rate Proposal Case that would have implement demand charges on all residential electric bills. A proposal Supervisor Buster Johnson said could have raised residential bills by more than $30 a month. In response to the overwhelming opposition, Unisource has released a statement that they will not continue to pursue demand charges on non-solar customers. “I want to thank everyone who came out against this proposal. It is obvious that they have heard the voices of Mohave County residents,” Supervisor Buster Johnson stated. “While Unisource is dropping demand charges for all customers, they are still intending on asking the Corporation Commission for an increase in the base charge fee and to implement demand charges on new solar customers,” Johnson continued.

Unisource Energy serves about 90,000 customers in Mohave and Santa Cruz County. In their proposal, they are asking the Arizona Corporation Commission to allow them to raise the customer base charge from the current $10 a month fee to $20. “This ten dollar increase would equal $900,000 more a month for this utility company,” Johnson stated. “We cannot be just satisfied with them dropping the demand charges. This increase is still left in their proposal and is still not justified or warranted. I still encourage people to file opposition against their proposal, and let them know that Mohave County residents do not want any type of unjustified increase,” Johnson continued.

While non-solar customers won’t see demand charges implemented, new solar customers will see demand charges if Unisource’s proposal is approved. New solar customers would also see a change in net metering. Currently, UniSource solar customers get paid the full retail rate for excess power their solar panels send back to the grid. The proposal would drop the rate by about half, down to the rate the utility pays to purchase power from large-scale solar arrays.

Mohave County’s overwhelming “no” on Unisource’s proposal was also heard by the Arizona Corporation Commission. Both Commissioners Doug Little and Bob Burns wrote letters earlier this month asking the parties involved to provide other options aside from demand charges. “Lake Havasu City is a retirement community for thousands of senior citizens and a second home to several winter visitors from across the U.S. This extra high charge will be almost impossible for residential ratepayers to control,” Supervisor Johnson said to the Commission during testimony earlier this month.

Unisource’s revised proposal will still need final approval from the Corporation Commission. A decision is expected this coming June.

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