Phoenix, Arizona – Arizona’s largest utility has been approved to increase electricity rates, affecting about 1.4 million customers. The Arizona Corporation Commission has given the green light to the rate hike, leading to mixed reactions among residents.
Residential customers of Arizona Public Service Co. will see their average monthly bills rise by $10 to $12 starting in March. In addition, customers with rooftop solar systems will face an extra fee of $2.50 to $3 per month. The decision came after a lengthy hearing, where input was gathered from both vocal participants and written submissions.
Commission Chair Jim O’Connor, along with three Republican colleagues, supported the new rate plan despite uncertainties surrounding its impact on customers. The approved rate increase falls within an estimated 8%, prompting concerns from various groups, including the Arizona Public Interest Research Group Education Fund.
Parties involved in the rate case, spanning nearly two years, encompass a diverse range of interests, from labor unions to renewable energy advocates. The utility argues that the rate hike is crucial for maintaining reliable services across multiple counties in the state, covering expenses from past infrastructure expansions.
APS President Ted Geisler defends the need for the rate increase, citing a return on equity of 9.55% as essential for bolstering the utility’s financial stability and credibility with creditors. However, dissenting opinions are present within the commission, with Democratic Commissioner Anna Tovar voicing concerns over the added costs to consumers.
Community members and industry stakeholders have raised objections to the supplemental fee targeting solar customers specifically, emphasizing the financial burden it places on those utilizing renewable energy sources. Despite these pushbacks, the commission stands by its decision, awaiting detailed analyses on the revised rate structure’s impact on varying customer classes.
As the debate over electricity rates continues, stakeholders are closely monitoring the evolving landscape of energy pricing and policy in Arizona. The impact of these rate adjustments on customers, particularly those with solar installations, underscores the complexities of balancing utility infrastructure investments with consumer affordability.