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Arizona Regulators Cut Power Company's Rate-Hike Request

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Thursday, November 4, 2021   

PHOENIX, Ariz. -- Following pressure from consumer groups and ratepayers, the Arizona Corporation Commission this week made significant cuts to a rate increase requested by Arizona Public Service (APS).

The power utility had asked for a $169 million boost in the rates it charges customers, but the regulatory board handed them a $119 million reduction. The decision reversed parts of a 2017 rate hike that was granted by a different group of commissioners amid charges of political partisanship and influence peddling.

Diane Brown, executive director of the Arizona Public Interest Research Group Education Fund, said for once, it was not "business as usual."

"The Commission basically didn't give APS everything they wanted, while for a period of time it was kind of assumed that APS just gets what it wants," Brown explained. "We also think it's kind of important to have folks realize that when they weigh in, it can make an impact."

The ruling reduced the utility's rate of return, denied a request to recoup the cost of decommissioning a power plant, and forced changes in several programs they said did not benefit customers. APS immediately announced it would take the matter to court.

Under the decision, APS must reduce its mandatory time-of-use peak rate, allow overnight off-peak rates for electric vehicle charging, and reduce the cost burden on low-income customers.

Brown pointed out the bottom line is lower electric bills.

"With the Commission's vote on the APS rate case, the vast majority of APS ratepayers are not expected to experience an increase and may even see a decrease on their monthly electric bill," Brown noted.

While consumer and community groups advocated with the commission over the rate case, Brown emphasized in the end, the people who pay the power bills made the difference.

"APS rate payers, speaking out and making their views heard to commissioners," Brown stated.

APS provides electricity to more than 2.7 million customers in 11 of the state's 15 counties, including large parts of the Phoenix metro area.

Disclosure: Arizona PIRG Education Fund contributes to our fund for reporting on Budget Policy and Priorities, Consumer Issues, Energy Policy, and Urban Planning/Transportation. If you would like to help support news in the public interest, click here.


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