The U.S. Bureau of Indian Affairs is raising electric power rates for the San Carlos Irrigation Project-Power Division in Arizona.

On Dec. 19, the BIA published a notice that the adjusted 2023 power rates would go into effect Jan. 18, 2023 in the Federal Register for the San Carlos Irrigation Project-Power Division, Arizona Power.

“While the BIA does everything possible to prevent increasing costs for consumers, the electric power rate increases are necessary to bring the cost of operations to current standards, which has not been done in over 16 years,” BIA Director Darryl LaCounte said in a Dec. 16 news release. “These electric power rate increases now reflect the current cost to operate and supply the power, perform appropriate maintenance and ensures BIA can continue to provide safe and reliable services into the future.”

While average residential monthly bills will increase by $4.08 or 3.2% per month, average commercial monthly bills will increase by 15-20% per month, according to the Federal Register. Customers with above average energy consumption and demand will see higher bill increases.

The rate increase was announced in February, and it is the first proposed rate increase since 2006. The date that the rates were supposed to go into effect was June 1.

“The San Carlos Irrigation Project’s proposed rate increase is one that must be considered given the last rate increase was 16 years ago, and operating costs have continued to rise,” LaCounte said in the announcement. “The project is the sole provider of electricity to Indian and non-Indian customers in some of the communities it serves, and this proposed rate increase will help us continue to meet our power obligations to them.”

SCIP is a federally owned electric utility that was authorized by an Act of Congress in 1924 to provide irrigation water to the project landowners.