November 11, 2008

UES Files Request to Increase Natural Gas Service Rates

UniSource Energy Services has filed a request for new natural gas service rates that would increase average residential bills by an estimated 6% beginning in late 2009 or early 2010.

UniSource Energy Services' (UES) current rates are based on costs the company incurred during 2005, and expenses have increased steadily since then. The company has spent more than $54 million since 2005 to strengthen and expand its distribution system while adding more than 5,000 new customers.

In a request filed with the Arizona Corporation Commission, UES has proposed phasing in an increase to its monthly customer charge while eventually reducing its usage-based rates. This change will align the company's rates more closely with the costs of serving individual customers, which do not vary significantly with consumption.