Don’t want higher APS bills? Time to weigh in with the Arizona Corporation Commission

Diane E. Brown

Submitted photo/Arizona PIRG

Utilities

APS faces critics on plan for future rate hikes amid higher costs

UTILITY RATES

Valley residents begin providing comments on APS rate case

OPINION — If you are an Arizona Public Service customer, you’ve likely heard the utility wants to raise rates by an average of 14%, an average of $20 a month or $240 a year. What you may not know is that APS doesn’t always get what it wants.

The last time APS wanted to raise rates, they proposed close to $700 million and the elected members of the Arizona Corporation Commission — their regulators and ultimate deciders on their proposal — granted them $500 million.

APS customers who express their perspectives, and intervenors that scrutinize and provide evidence contradictory to the utility’s position, offer counter proposals for commissioners to consider. As the Arizona Public Interest Research Group Education Fund and others have talked in person with residents in over 50 municipalities in our state, including the Sun Cities, Cave Creek and Carefree, there were a number of common themes that ratepayers told us they want commissioners to keep in mind.

Overall, consumers are pleased with the reliable electricity service they receive and positive about the company’s customer service. Consumers also understand that the utility is a business, costs have increased and the utility is entitled to recover sensible expenses, such as maintaining infrastructure.

However, APS customers also told us they think an average 14% rate increase is unreasonable, particularly on the heels of the utility’s recent rate and bill increases. Ratepayers are overwhelmingly skeptical of formula rates, which could result in annual increases for the next five years based on the formula to be created and approved in this case.

Therefore, it is not surprising that consumers are concerned that if formula rates and the proposed rate get approved, the average 14% rate increase could be a baseline for the next five years. Most APS customers did not have an issue with shareholders making a return on their investment, although they deemed a return on equity of over 10% excessive and want the company to be more focused on its customers vs. its shareholders.

In addition, consumers in both rural and urban areas are trepidatious about costs associated with data centers. Arizona PIRG Education Fund heard a significant level of distrust from APS customers regarding the definition of “growth pays for growth” and want to ensure that no data center expenses will be covered by residential or small business ratepayers in either the short or long-term.

Whether you agree or disagree with sentiments of residents in the Sun Cities, Cave Creek, Carefree and elsewhere, or have additional praise and/or concerns on topics such as a proposed increase in the monthly service charge, grid access charge for solar customers or the amount of advertising and sponsorships carrying APS’ name, what matters most is providing your thoughts on what is “just and reasonable.”

At 10 a.m. May 18, the Arizona Corporation Commission will hold a public comment session. If you can come to 1200 W. Washington St. in Phoenix, please be there. To call to speak or listen in, dial 1-877-309-3457; Passcode 801972877#. You also can call the commission at 602-542-4251 before or after that day and they will take and pass along your comments.

Diane E. Brown is executive director of the Arizona Public Interest Research Group Education Fund. 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.