PHOENIX — Arizona Public Service is asking state regulators to approve an average 14% electric rate increase – and buried deep inside its more than 2,000-page proposal is a request that could also allow the utility to request a rate increase every year.
The Arizona Corporation Commission begins a hearing on Monday on the rate case. Inside the massive filing, APS is asking to switch to a new system called “formula rates." This essentially would allow the utility to come forward with an annual request for rate adjustments.
If approved by the Arizona Corporation Commission, the utility would only have to go through a formal rate case – like it’s doing now – once every five years.
Many customers are already pushing back against the idea.
“That is crazy talk,” said Maria Bears, a Sun City West resident who attended a meeting earlier this year to speak out about the proposed rate increase. “I can’t believe they are even asking for it.”
But Anne Carlton, APS’ manager of regulatory compliance, defended the idea in an interview with ABC15. She said the goal is incremental changes rather than larger increases every few years.
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“If you're going to buy a cup of coffee, and it changes from $2 to $8 in a day, it can really freak people out,” she said. “Whereas, if that changes in a smaller amount over time, it's something that we feel like people could probably budget for better.”
She said if approved, APS would still need approval from the Arizona Corporation Commission before any annual increases.
“We would still need to go through a submittal, public participation, a full evaluation of all our financials,” she said.
The possibility of annual increases worries APS customers like Ana Compean of Buckeye. She said her family’s budget is already tight.
“We’re going to be trying to stretch our dollars when we don’t have any more dollars to stretch,” she said.
Here’s the estimated timeline for the APS rate case:
A hearing begins Monday and is scheduled to last several weeks through June 30.
Regulators will then spend several months reviewing details. A vote isn’t expected until December. Any rate hikes would show up on bills early next year.
You can still weigh in on this proposal before regulators vote. The Arizona Corporation Commission is accepting public comments. A link to the commission’s website is here.
Here are more details on what else is being proposed as part of the rate hike:
- 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.
Email ABC15’s Anne Ryman at anne.ryman@abc15.com, call her at 602-685-6345, or connect on X, formerly known as Twitter.
