Public Concerns Rise Over Proposed APS Rate Increases
PHOENIX – Edward Van Ness, representing the Sun City Homeowners Association, recently voiced strong concerns at a public session of the Arizona Corporation Commission. The commission, which holds significant sway over future energy costs for residents, is set to review and potentially approve rate changes proposed by Arizona Public Service (APS), the state’s largest energy provider.
Van Ness, speaking on behalf of many Sun City residents, highlighted the financial strain that a proposed rate hike could impose, especially on retirees living on fixed incomes. Many residents face tough decisions, such as choosing between paying for utilities or buying groceries.
The public comment session was a precursor to the upcoming APS rate case hearing scheduled for May.
RELATED: Turning Point action is targeting a typically quiet utility board election
APS is seeking approval for a substantial revision in its customer billing methods. If approved, residential customers might experience an average increase of 16% in their monthly power bills, translating to approximately $20 more per month. This move aims to generate an additional $579.2 million in revenue for APS.
Many APS customers find the prospect of a $20 monthly increase difficult to manage. “Let’s face it, it’s got to be pretty demeaning to your aspect of life,” Van Ness said. “And could be, you know, ‘why am I sticking around? I can’t afford to live anymore, so I might just wanna die,’ and that’s a heck of a thing to have to think about in your life.”
While public discourse has largely focused on the immediate financial implications for consumers, APS is also proposing a shift to a formula rate system. This change could potentially reduce regulatory oversight, allowing APS to adjust rates annually without undergoing the traditional, more rigorous rate case process for five years.
Anne Carlton, APS’s manager of regulatory compliance, explained that the current rates are based on 2021 and 2022 expenditures. “With the economy changing so dynamically since then and everything becoming so much more expensive, you can imagine that every piece and part that we use to maintain the grid has become more expensive, up to 70% higher, even above 100% higher,” Carlton said.
If the formula rate system is approved, APS would annually conduct a cost of service study for each customer category, allowing them to adjust rates based on current data. “We’re going to perform a cost of service study every year as part of a formula,” Carlton added. This method could address significant changes in customer classes more efficiently than the current system.
Consumer advocacy groups, such as Arizona PIRG, have expressed concerns about the potential lack of scrutiny with this new system. Diane Brown, executive director, noted that while companies typically seek cost recovery for large capital expenses every few years, the formula rate would allow APS to implement increases annually with less oversight.
Numerous parties, including major retailers and the Arizona Attorney General, have filed interventions in the rate case to ensure thorough examination of the proposal. “We’ve consistently heard that $20 more a month on average would greatly impact their lives and that of their household,” Brown said. “Individuals have shared heartbreaking stories about the need to forgo medicine or food due to recent rate increases.”
The proposed adjustments include a 14% average increase across all customer categories, with specific increases of 16% for residential users and up to 45% for data centers.
APS is also considering doubling the Grid Access Charge for solar customers, which some critics label as a “solar tax.” This nominal fee is intended to cover service costs for residential clients generating their own solar power.
Peoria resident Donna Levy, who uses solar panels, expressed dissatisfaction with APS’s compensation for excess electricity. She shared that her neighbor was discouraged from installing solar panels after consulting with APS. “And us older citizens, in our lifetime, you can never make back the money of what it costs to put the solar on your roof,” Levy remarked.
The final hearing for the rate case is slated for May, with a decision expected before November’s elections, where two seats on the Arizona Corporation Commission will be contested.
“You can’t live without power,” Van Ness said. “I mean, you need to take a bath and you need to be able to cook your food. So it’s just a disheartening thing for me to know the people who are having to make dire choices that will affect them in the future, in today.”
This article first appeared on Cronkite News and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.
PARSELY = { autotrack: false, onload: function() { PARSELY.beacon.trackPageView({ url: “https://cronkitenews.azpbs.org/2026/03/04/on-top-of-a-14-rate-increase-aps-asks-arizona-utility-regulators-to-switch-to-yearly-increases/”, urlref: window.location.href }); } }
The post On top of a 14% rate increase, APS asks Arizona utility regulators to switch to yearly increases first appeared on Copper Courier.
