SURPRISE, AZ — Brandon Pickett knows all too well how expensive electricity can get. His highest summer bill last summer reached nearly $600.
He and his family are trying to cut costs in their 2,600-square-foot home. That means doing laundry during off-peak hours.
“We’re doing what we can,” he said.
Pickett isn’t just cutting back, though. He’s one of hundreds of people who have written letters to the Arizona Corporation Commission, opposing a proposed rate increase from Arizona Public Service. The utility is seeking to raise rates 14% overall, two years after the commission granted an 8% hike.
APS filed its latest rate application last summer, and the first public comment meeting is set for January 20.
The proposed rate increases vary depending on the rate category and how much electricity a customer uses.
Here’s what it looks like, according to information distributed to customers by APS:
- Homeowners could pay 16% more, depending on their rate plan. One APS example shows a $302 monthly summer bill increasing to $355.
- Solar customers would see a controversial fee double. The Grid Access Charge monthly fee would rise to between $5 and $6.APS says this charge helps cover costs to maintain and operate the energy grid that serves them.
- Churches could face 16% increases.
- Schools could see 14% increases.
- Data centers could face the steepest hikes – a 45% jump in their rates, which APS says protects existing customers from subsidizing expansion.
- The proposal also includes a request for what’s called a Formula Rate Mechanism. If granted, it would fundamentally change the way the commission has handled past utility cases. It could allow annual increases to utility rates.
The proposed increase is already drawing criticism. Arizona Attorney General Kris Mayes is intervening in the rate case, saying it’s unacceptable for a monopoly utility to increase costs for families already struggling with inflation.
APS officials say the increase is necessary because, according to the rate filing, “current rates do not recover sufficient revenue to ensure reliable service - especially in the face of dramatic system load growth showing no sign of relenting.”
“We understand that there’s never a good time for people to have their rates changed,” said Anne Carlton, manager of regulatory compliance for APS, in an interview with ABC15.
She says rising expenses are the main reason for the requested increase. Equipment, such as transformers, has gotten 50% more expensive. Contractors also cost more.
“In general, the cost of doing business has increased due to economic conditions,” she said.
Carlton said data centers are currently “paying their fair share.” APS says the 45% proposed hike is designed to prevent current customers from subsidizing new data centers moving to Arizona.
“What we're doing in this rate case is really looking forward to say we do have a very different looking horizon when we look at data centers,” she said.
The Arizona Corporation Commission will make the final decision on how much rates will go up. A vote is expected this fall.
Public comment meetings are scheduled for:
- Jan. 20 beginning at 1 p.m. at the commission office, 1200 W. Washington St. Instructions for calling by telephone are available at the commission’s website.
- Feb. 18
May 18
Customers can give their written comments online at any time via the commission’s website.
Email ABC15 Investigator Anne Ryman at: anne.ryman@abc15.com, call her at 602-685-6345, or connect on X and Facebook.
