While rising bills may seem daunting for Uni- source customers in Mohave, Yavapai, Coconino and Navajo counties in northern Arizona and Santa Cruz County in southeastern Arizona, those ratepayers are by no means alone. Natural-gas prices nationwide are soaring due to tight supplies.

Valley utility customers won't be spared, either. Southwest Gas is seeking a rate increase for its 500,000 Valley customers, and Salt River Project and Arizona Public Service Co. want to shift costs to ratepayers because the higher natural- gas prices make it more expensive to generate electricity.

Even consumer advocates say there is little they can do to shield customers from the rising natural-gas prices gripping the nation.

"We can't overcome the tidal wave of increasing pressure on prices that everybody is experiencing," said Stephen Ahearn, director of Arizona's Residential Utility Consumer Office.

"These companies do not make a profit on increasing gas prices."

Unisource wanted an immediate 40 percent increase, but Commissioner Kris Mayes suggested a gradual approach that included a 26 percent increase during the winter months. The amount of the surcharge gradually builds through spring and summer months when heating bills are typically lower. The move is designed to shield Arizonans from sticker shock by charging the higher rates during the winter.

"The 26 percent increase is bad enough," Mayes said. "Having a 40 percent increase would have been a crushing blow this winter."

Unisource officials say that the approach will create a growing deficit because it will be forced initially to pay higher natural-gas costs than the amount they are allowed to pass along to consumers. An existing deficit of nearly $7 million will swell beyond $20 million next year.

"We understand the commission is attempting to prevent rate shock this winter," said Joe Salkowski, Unisource spokesman in Tucson. "It does not collect all of our gas costs for this winter."



Reach the reporter at ken.alltucker@arizonarepublic.com or (602) 444-8285.