APS rate hike: Customers protest 14% electricity cost increase proposal
The Arizona Corporation Commission is holding hearings regarding a proposed 14% electricity rate increase for residential customers and a 45% increase for certain businesses, including data centers, by utility company APS. Customers are strongly protesting the proposed hikes, citing affordability concerns. The commission is currently hearing testimony and will make a decision in the coming months.
Customers packed an overflow room on May 18 to protest a proposed 14% electricity rate increase for residential users by Arizona Public Service (APS) at the Arizona Corporation Commission (ACC) hearings. The for-profit utility is also seeking a 45% rate increase for specific businesses, including data centers, prompting widespread outrage among attendees who spoke about the struggles of living paycheck to paycheck and the lack of choice in electricity providers.
During the first day of weeks-long hearings, over 30 third-parties, including the Arizona Attorney General, are expected to testify. Judge Charles Hains will weigh the evidence to determine a reasonable rate before making a recommendation to the commission. Critics, such as Ylenia Aguilar of the Sierra Club, expressed skepticism about the ACC's independence, though Chairman Nick Myers denied claims of rubber-stamping utility requests, stating utilities rarely get everything they ask for.
APS justified the proposed increase, citing rapidly rising equipment costs, with transformer costs up 49%-90% since rates were last set five years ago, and emphasizing the need to cover current operational expenses to maintain grid reliability. The judge is anticipated to conclude testimonies by the end of June, with a commission vote to follow, and any new rates potentially going into effect next year.