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Arizona AG challenges proposed APS rate hike of 14%

aps building
Justin Stabley/KJZZ
APS Building in downtown Phoenix.

The Arizona Attorney General’s Office is challenging a proposed 14% rate hike for APS customers. But APS says it’s necessary to maintain “top tier reliability.”

If approved by the Arizona Corporation Commission, the rate increase could take effect at the tail-end of 2026.

APS says the hike accounts for system upgrades and maintenance. Spokesperson Ann Porter says they have heard customer concerns, but there’s been economic changes since the last time the rate was set.

But Richie Taylor with the AG's Office calls it “corporate greed.”

“APS could slash the proposed rate hike from 14% to 3% and still maintain grid reliability and attract and retain investment," Taylor said. "And this would save the average Arizona family about $220 a year ”

The AG’s Office submitted an expert analysis to the commission accusing APS of using unrealistic assumptions including exaggerated risk estimates.

“Reasonable investors can still make a good return on their money and rate payers can still pay reasonable amounts for their bills," Taylor said.

Porter says the current rate is based on a more than 4-year-old cost analysis, and has not kept up with economic changes.

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Jill Ryan joined KJZZ in 2020 as a morning reporter, and she is currently a field correspondent and Morning Edition producer.