12News Investigation Examines Data Center Surcharge on APS Customer Bills
A 12News investigation examines an APS surcharge that customers pay to support power infrastructure associated with large new loads, including data centers. Consumer advocates and a report submitted to state regulators allege residential and smaller business customers may be subsidizing data center-related costs, while APS disputes the claim and says its rates protect customers.
12News reports that Arizona Public Service customers are paying a surcharge that can add hundreds of dollars to commercial bills and more than $20 to some residential bills. The investigation links the issue to APS infrastructure expansion for large customers, including data centers, and cites a report alleging that residential and smaller business customers bear costs that should be assigned to the largest industrial users.
Customers in the Phoenix area, including fixed-income resident Ralph and Glendale business owner Cafe Rumba, describe the surcharge as a significant burden. Other residents acknowledge that data center construction creates jobs but want assurances that the industry's growth will not increase their monthly bills.
APS says the surcharge is a pass-through charge that supports the broader grid and denies that residential and business customers are subsidizing data center growth. The Arizona Corporation Commission is considering a new rate structure in an ongoing rate case, while the Attorney General's Office argues that APS's proposed changes do not adequately protect customers.