Along with APS proposed 14% rate increase, the utility is also seeking a formula rate that has some utility customers worried their bills will automatically go up.
But APS says it’s not quite that simple.
APS says the Arizona Corporation Commission would still need to approve any proposed rate hikes that would come from the formula.
There is also something called a dead band, where the utility can only ask for a rate increase if the cost of providing electricity exceeds a certain year over year threshold.
APS says the formula is meant to simplify the rate process in the coming years. But critics say that would also mean the public gets less input.
APS customer Vanessa Perez spoke against the formula rate at a public hearing last week.
“Because now after repeated increases, APS wants the ability to raise rates with less public oversight and fewer opportunities for community input," Perez said.
At a recent debate, Commissioners Nick Myers and Kevin Thompson supported formula rates, arguing they would prevent large rate spikes year to year.
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“There is a limited water supply. It’s getting even lower. And with that, a lot of hard decisions need to be made,” said John Berggren, regional policy manager for the environmental nonprofit Western Resource Advocates.
