Meter suggests that the proposed massive increase is warranted due to operational and capital costs. I disagree! These costs have been well known for years and in some cases decades.
Given the long life of most capital assets, replacement can and should be funded with nominal increases in rates over time to capitalize a “sinking fund” reserved specifically for future spending on asset replacement.
A request for a 14% increase in rates demonstrates either corporate greed or extremely poor planning on the part of APS management; maybe both? In any case, ratepayers should not be required to shoulder such a massive increase in a single year.
In a competitive market, APS would not be able to do this as their customer base would decrease immediately. Perhaps the best thing that the Arizona Corporation Commission can do to protect consumers that have the bad fortune to be in the APS service area is to limit profitability to no more than 2% to 3% annually, including funding for future expenses in a sinking fund or something similar. This profitability would be guaranteed as there is no competition for the product and future expenses can be reasonably estimated and planned in advance.
Monopolies are permitted in the USA by very few exceptions, utility companies being one such exception. As such profits should be limited to a minimum.
One final thought for Meter since he believes that this increase in rates is reasonable and warranted. I suggest that he begin sending an additional 14% more than his monthly bill to APS immediately as a gift. I am sure it would be gratefully accepted.
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