Regulators have approved a rate increase for Sulphur Springs Valley Electric Cooperative that could boost your bill $9 a month.
While it's the utility's first increase in 16 years, the Arizona Corporation Commission did not give the utility all it sought.
The commission ap-proved an 8.18 percent rate increase, which is less than the 10.18 percent that had been sought by the utility. The rate hike gives the utility an additional $7.5 million in annual revenues, which translates to an average impact of about $9 per month for residential customers.
"We recognize these are tough economic times, and the commission lowered the rate increase by $1 from the recommended order," said Kris Mayes, who chairs the commission.
Along with the rate hike, the commission is requiring the utility to conduct an independent feasibility study on construction of a power line from Whetstone to Sonoita. The line is intended to improve power distribution to Whetstone, Sonoita, Elgin and Patagonia. After hearing objections from residents in those communities and surrounding areas on the power line's potential environmental impact, commissioners voted for an independent study on other options.
"We approved, as part of the overall order, the provision requiring SSVEC to conduct an independent feasibility study and not to build the 69kV line until that is completed." Mayes said. Regulators also approved an amendment by Mayes requiring the utility to conduct outreach forums designed to let the public provide opinions on the independent study.
When contacted about the rate case and the commission's Tuesday decision, Sulphur Springs Valley Electric Cooperative officials said they would have a statement early next week.
(Dana Cole is a reporter at the Sierra Vista Herald/Bisbee Daily Review.)