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Arizona Regulators Open Hearings on APS 14% Rate Hike and Annual Adjustment Plan

Regulators will weigh whether APS can shift to annual rate changes through a formula-rate system.

Overview

  • Arizona’s utility commission began six weeks of evidentiary hearings Monday, with the final in-person public comments taken at the kickoff and a vote expected in December.
  • APS is asking for an average 14% increase and for permission to use formula rates, which would allow yearly adjustment requests with full rate cases only every five years.
  • Company officials say any yearly change would still require a formal filing, public input, and commission approval before it could take effect.
  • Opposition has mounted from Attorney General Kris Mayes, Democratic legislative leaders, and customers who protested and told commissioners the hikes would strain family budgets.
  • APS projects different impacts across customer groups, including about 16% for many households, roughly 14% for schools, about 16% for churches, a doubled $5–$6 monthly grid fee for solar users, and up to 45% for data centers to prevent other customers from covering expansion costs.