Valley residents begin providing comments on APS rate case

My concern with going to a formula base method is transparency, oversight and public comment will be removed and then it will be pretty much an automated deal.”

Sun City West resident Jim Scott

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By Jennifer Jimenez
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Residents from the Sun Cities made the trek to downtown Phoenix to have their voices heard in person by the administrative law judge at the Arizona Corporation Commission regarding the proposed rate hike by the state's largest electric utility

Sun City West resident Jim Scott, wanted to attend the public comment session to share the impact an 14.58% increase proposed by Arizona Public Service Co.  — an approximate $20 a month — to not only his, but his fellow neighbors’ livelihood.

Scott said his interest was piqued after attending a presentation from interveners on the APS proposed utility rate increase, hosted by the Sun City Homeowners Association. From there, he organized a Sun City West community effort to educate residents on the case and how to get involved.

Heading down to the ACC, 1300 W. Washington St., Scott said was important.

“It was an interesting experience. I went into the hearing room and they called people up to speak and also had some on the phone,” he explained.

Scott admits he was nervous to get up and read his statement, but said he listened to the people ahead of him and everyone’s message was clear. They painted a bigger picture with regard to the multiplier effect to every small, medium and large business that will ripple through to pricing and increased costs. Adding, no one quite knows what the true impact will be.

“My concern with going to a formula base method  is transparency, oversight and public comment will be removed and then it  will be pretty much an automated deal,” said Scott.

The formula rate method would allow APS to potentially increase rates in the future absent a rate case, based on an agreed-upon formula.

Scott said he is a skeptic by nature, but what really hit him was one particular phone call from a senior woman. He said it was “life-changing to hear her story.”

This woman said she lived in a manufactured home and she and her husband only use one light during the evening to cut their energy usage. Scott said she described her husband’s use of a sleep apnea machine and heart monitor and her need to use an oxygen tank, which is making her power bill very high.

“She said her last bill was $540, and you could hear the cracking in her voice talking about how the previous month she was trying to catch up and was in arrears more than $900. That month was her 40-year wedding anniversary and the couple had 35 cents in their checking account to celebrate with in their checking account,” said Scott.

This issue is important and critical to many households, according to Scott, and people need to know they can also get involved.

Arizona Public Interest Research Group Executive Director Diane Brown was observing during the public comments at the ACC.

“The Arzona PIRG Education fund is an intervener and we are not able to comment during the public comment period. We save that for the hearing when interveners  speak, however, we have been working to educate folks in the Sun Cities and across APS service territories about the rate case and answer questions and encourage them to be involved,” she explained.

She said the organization appreciates having the opportunity to see some residents testify at the ACC and was happy to be a resource for anyone who wants to learn more about the process.

Brown said the commission will hold another opportunity for public comment before the hearing starts in May and then again, immediately prior to the commission vote, which is expected to happen later this year. She said in between those times, ratepayers can and should provide input in writing to the commission to let them know how another $20 a month in rates would impact their household.

“As we have spoken with ratepayers in the Sun Cities, West Valley and across the state, the vast majority of consumers are unaware of the Arizona Corporation Commission and their role as regulators of APS. When we provide examples of how consumers’  voices can and have been heard at the commission including how APS received approximately $200,000 less than when they requested in their last rate case, rate payers are more energized to speak up and provide their perspectives,” said Brown.

SCHOA President  Ed VanNess spoke during the public comment session, saying residents in Sun City are seniors and many live on fixed incomes, therefore an increase on electricity rates can create a hardship on people who cannot increase their income.

VanNess said with the increase from 2023 and the proposed addition will take the rates to roughly a 23% in a little more than two years. He said organization officials are concerned about a proposed formula rate mechanism which reduces transparency and limits public input.

“SCHOA urges the commission to reject this proposal rate,” he said.

Brown said having SCHOA, as well as officials from the Property Owners and Residents Association  and residents from the Sun Cities speaking up has been incredibly powerful and helpful to illustrate the impacts to the decision the commission is making when it comes to utility rates. She said ratepayers in the Sun Cities are not using the word affordability as a buzz word, but are sharing hard decisions to paying an electric bill instead of buying medication or food.

According to APS official Ann Porter, APS filed the rate application in June of last year. She said the open comment sessions are a part of a process  the ACC has in place for any rate adjustments.

“These public comment sessions are all part of the data gathering process that the Administrative Law Judge oversees — before APS and other interested parties discuss the rate case, in person. (The current timeline projects that this will happen in May or June of this year.)

“At the end of that process, the Arizona Corporation Commission will hear the judge’s recommendation and make a decision at the end of this year, or even possibly early 2027. Rate adjustments will not happen until the process is complete,” she stated in an email.

To learn more about the APS rate case proposal, visit www.aps.com/ratecase.

Residents who would like to submit letters, can email those to dbrown@arizonapirg.org, with Letter on APS rate case in the subject line. Letters can also be submitted through the ACC’s online form efiling.azcc.gov/online-services/utilities-public-comment-external.

Reporter Jennifer Jimenez can be reached at jjimenez@iniusa.org. Please submit comments at yourvalley.net/letters or email them to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.

Jennifer Jimenez
Reporter | Sun City West

jjimenez@iniusa.org

Meet Jennifer

In 2020, Jennifer Jimenez began working for Independent Newsmedia, Inc., USA. She began her career as a sports reporter in Peoria and Glendale, covering the very same schools she used to compete at.  During this time, she also worked for television news, magazines and sports radio stations.

Community: Jennifer is a member of the Hall of Fame at Peoria High School where she graduated in 2001, alongside her father Joe Hernandez. She serves youth soccer players as a pro-trainer and coach.  

Education: Grand Canyon University 2005 B.A. Liberal Arts

Ranom Fact: She has a street named after her in south Peoria “Jennifer Rose Court.”

Hobbies: Country dancing, coaching soccer, teaching private swim lessons and running are things she does for fun.