Earlier in July as power demand and prices began to peak, Tucson, AZ-based UniSource Energy Services (UES) forewarned its natural gas customers in the northern part of Arizona about the likelihood of higher gas utility bills this winter. Per-therm gas costs could rise to $1.32 in November, drop back and then rise again to about $1.37/th in March of next year, UES announced.

The utility, which owns Tucson Electric Power (TEP), filed a request with state regulators this month for a 7%, or $9.6 million, general rate increase. UES proposes to increase its gas utility customer monthly service charge from $7-11/month, during the heating months of December through March.

Estimating a December bill at about $148, UniSource said there would be no profit increase for the utility in the rate hike. Any eventual increase in charges for distribution service would not take effect until August 2007, UES said.

Projected winter bill increases reflect higher wholesale natural gas prices, although market prices have fallen so far this year, UES said. “The [prices] remain above historic levels due to increased demand from homeowners, factories and gas-fired electric power plants,” the company said.

“This winter’s bills also will include a graduated purchased gas adjuster (PGA) surcharge established by the Arizona Corporation Commission (ACC) to recover gas costs not included in the PGA. The ACC designed the surcharge to rise in the summer and fall during the winter to ease the burden on customers during the home heating season.”

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