Arizona Public Service’s proposed rate hike faced criticism this week, as the state utility regulator held a public hearing. Residents told the Arizona Corporation Commission that the proposed rates are not affordable.
Last year, APS filed for approval of increasing rates by about 14%, which would amount to about $20 more per month for customers.
APS says the hike, which would be the fourth since 2017, is necessary to cover operating costs and grid maintenance. And while the utility says rates are still below the national average, customers like Tatiana Johnson of Phoenix told the commission that the hike isn’t necessary.
“Continuous rate hikes are exploitative, excessive and egregious. Pinnacle West, APS’s parent company, just wants to increase their profit. The fact is they are doing fine," Johnson said.
William Horton of Buckeye told the Corporation Commission that Arizonans are often stuck using a certain amount of electricity, especially during the summer.
"We don’t have the option to use less. We don’t get to turn off the AC to save money. We don’t get to gamble with our health and our children’s health," Horton said.
Attorney General, and former commissioner, Kris Mayes has intervened in the case, saying APS reported $600 million in profits in 2024. There will be four more public comment hearings through May at the commission's office.
The next hearings are set for:
- Jan. 26, 6-8:30 p.m. (telephonic only)
- Feb. 18, 10 a.m.-1 p.m. (telephonic and in person)
- Feb. 18, 6-8:30 p.m. (telephonic only)
- May 18, 10 a.m.-1 p.m. (telephonic and in person)
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Data analyst Abhay Padgoankar says a group of around 100 data centers and other large industrial users have nearly all of the increased demand on APS's system in recent years. To keep up with demand, he says, the utility is buying more power from outside suppliers and charging that across the entire rate base. -
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