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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Democratic Gov. Katie Hobbs wants ongoing funding for energy assistance programs, but she needs support from Republican lawmakers to make it happen.
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Arizona added nearly 2-gigwatts of solar power, bringing the total amount statewide to about 11.5 gigawatts. To put that in perspective, APS’ peak demand last year was more than 8 and a half gigawatts.
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The Trump administration has called on big tech companies to keep energy costs down amid the data center boom. But critics say the Trump administration's request does little to hold big tech companies accountable.
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Arizona regulators have repealed renewable energy requirements for the state’s utilities, erasing rules first passed two decades ago.