Tucson, Ariz. – UniSource Energy Services has filed its first Annual Rate Adjustment Mechanism (ARAM) request with the Arizona Corporation Commission (ACC), seeking recovery of investments made to maintain and improve its natural gas system.

The filing reflects approximately two years of system investments made since the mechanism was approved as part of the company’s most recent gas rate proceeding.

If approved by the ACC, the proposed adjustment would take effect April 1, 2027. The average residential customer with typical usage would see a monthly bill increase of about $2.25. Actual impacts will vary based on usage, with typical January bills increasing by about $3.80 and typical July bills increasing by $1.30. The proposed 4.4 percent increase is less than the 6.3 percent cumulative inflation since June 2024, the period used to establish current rates.

“We know customers pay close attention to any change in their bills,” said Jay Rademacher, Vice President of Rates. “Providing safe, reliable natural gas service requires ongoing investment in the system our customers depend on every day. This filing helps us recover the cost of improvements we’ve made to support reliability while maintaining the regulatory oversight built into the ARAM process.”

The ARAM was part of new UniSource gas rates approved by the ACC in February 2026. The mechanism allows for annual reviews of certain investments and costs associated with providing service, helping support gradual rate adjustments over time while enhancing regulatory oversight and transparency.

Because this is the first filing under the ARAM, it reflects investments and cost increases that have accumulated over approximately the last two years. Future filings will return to an annual review cycle. This initial filing reflects $41.5 million in system investments made to maintain and improve the natural gas system, including pipe replacement projects, metering equipment upgrades and other infrastructure that supports safe and reliable service.

The ACC will review the ARAM filing before determining whether to approve the requested adjustment. Customers can learn more about the ARAM process at uesaz.com/gas-aram.

About UniSource Energy Services

UniSource Energy Services provides natural gas service to more than 170,000 customers in northern and southern Arizona. It also provides electric service to 106,000 customers in Mohave and Santa Cruz counties. UniSource is committed to providing safe, reliable energy service while maintaining affordable rates and delivering value to customers and communities.

For more information about UniSource, visit uesaz.com. UniSource and its parent company, UNS Energy, are part of the Fortis group of companies. Fortis, Inc., is a leader in the North American regulated electric and gas utility business. For more information visit fortisinc.com.

News Media Contact:

Joseph Barrios
(520) 884-3725
jbarrios@uesaz.com