Electricians, Adam Hall, right, and Steven Gabert install solar panels on a roof for Arizona Public Service company in Goodyear. Utility bills for the typical APS customer are going up by about $10.50 per month starting on or after March 8, according to preliminary numbers.
Utility bills for the typical Arizona Public Service Co. customers are going up by about $10.50 per month starting on or after March 8, according to preliminary numbers.
On Thursday, the Arizona Corporation Commission voted to approve another APS rate hike for its 1.4 million Arizona customers as a way for the utility to recover costs it has already paid to improve its existing infrastructure.
APS pays $1.5 billion each year to upgrade technology, add substations, replace aging poles and wires and help reduce outage impacts, according to a video on the utility’s website.
The initial application for this particular APS rate case was filed in October 2022.
In addition to paying more for power, solar customers within APS’s territory will be asked to pay a $2.50 additional fee monthly.
The latest increase will allow the state’s largest utility to cover what it already has spent in infrastructure costs as well as invest in future projects, said Jill Hanks, an APS spokeswoman.
“While we realize it is never a good time to increase rates and this change will impact customers differently, we included increased assistance for our most vulnerable customers,” Hanks said. “We’re still working through the data, but preliminary estimates show a bill impact of roughly 8%, in the range of $10-$12 a month, for a typical residential customer.”
Thursday’s meeting was an 11-hour gathering that inched along where APS President Ted Geisler and Residential Utility Consumer Office officials — among others — were in attendance.
Some participants — after another party would make a claim — frequently stepped up to the podium and would quickly refute portions of whatever was said to members of the Arizona Corporation Commission.
The commission received at least 2,000 written public comments prior to the meeting and had more than 50 public commenters signed up to speak during Thursday’s meeting, according to Chairman Jim O’Connor.
At one point, the Geisler told commission members the utility’s “financial condition is seriously deteriorating” and the utility was having trouble getting loans.
APS officials expect energy demand to eventually grow by 40%, Geisler told commission members on Thursday.
“A variety of factors have changed since the conclusion of APS’s last rate case (in 2021), including significant investment in plant and infrastructure, revenue and expenses, the cost of capital, customer growth, compounded inflationary pressures, and disruptions to the global supply chain,” language in the October 2022 rate case application said.
One APS customer said she was unhappy the utility was seeking another rate hike. She told the commission the utility provides “excellent service” but was not pleased with “ridiculous” surcharges and fees.
On her particular bill, she claimed two-thirds of her bill was made up of extra fees.
Abhay Padgaonkar, a consumer advocate, said APS is “very profitable” and pays about 5% in dividends to investors or about $380 million each year.
Many Valley residents don’t pay enough attention to APS continually asking for rate increases, Padgaonkar said.
“No, (residents don’t pay enough attention),” Padgaonkar said. “(Residents) think they have no control. They should vote for commissioners who are not utility friendly.”
Thursday’s decision “expands the APS energy support program — which provides discounts for qualifying” limited-income customers, Hanks said. The decision also adds “two more off-peak holidays for customers on time-of-use plans 4 p.m. to 7 p.m. weekdays, time-of-use 4 p.m. to 7 p.m. weekdays with demand charge and saver choice plus plans, she said.
The ACC last approved a base rate increase for APS in 2017, according to Katie Conner, an APS spokeswoman.
In a 2019 application, APS officials requested a separate increase of 4.99% for the average residential consumer’s bill, with an estimate the vast majority of its customers would see their bills increase between 3% and 6%, according to the initial filing.
The Arizona Corporation Commission voted to slash APS revenue by about $119.8 million after the state's largest utility requested the increase in that particular rate case.
Brent Ruffner joined Independent Newsmedia, Inc., USA, in 2021 where he writes about developments at TSMC and Maricopa County issues, including election topics.
He's written about stories that range from accusations that a Mesa monkey breeding facility is unsafe to what to do if you encounter a rattlesnake in the desert.
Community: He is a supporter of the American Cancer Society.
Education: Bachelor's degree in Journalism and Mass Communication, Arizona State University, May 2007.
Random Fact: He met former San Francisco Giants outfielder Willie Mays at a Phoenix Firebird game after winning a contest for an autographed baseball.
Hobbies: Hiking in the woods and collecting sports memorabilia.
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