APS Rate Hike Meeting May 18th

Background on the APS rate case. The last APS rate case resulted in an average 8% rate increase or $10 each month, and was decided by the Arizona Corporation Commission, APS’s regulators, in 2023.

APS is now seeking:

• An average rate increase of approximately $20 month (or 14.58% on average for residential customers), net of adjustors[1], for a total net increase of $579 million.
• An increase in the basic service charge[2] to $15 a month.
• A doubling of the grid access charge for the average solar customer to nearly $6 each month.
• Formula rates, which would allow for annual increases to customer bills based on the formula to be created and approved in this case. If formula rates and the proposed rate get approved, the average 14% rate increase would likely be a baseline for the next five years.
• An increase — bringing to over 10% — the amount that shareholders make off capital investments, meaning that if the Commission approves APS’ request, more money for shareholders and less money for ratepayers.
• Continuation of support to limited-income bill assistance programs at $2.5 million a year, and maintaining their tiered discount rate for income-eligible customers.

APS has stated that high inflation and interest rates, system investment needs due to growth in their service territory, and supply chain issues are among the reasons they need this increase. While the utility is entitled to recover prudent costs in areas such as load growth and supply chain shortages, their shareholders have recently yielded hundreds of millions of dollars in profits to the detriment of their customers.

1.  Provide comment during the public comment session:

Mon., May 18. There is a public comment session scheduled to start at 10:00 a.m. and end by 1:00 p.m., or until the last person has provided comment, whichever comes first. If you are going in person, we encourage you to arrive at least 15 minutes before the comment period starts. If you are calling in, the call-in line should be open 15 minutes before the comment period starts. Comments are usually taken in order of requests to speak on that day. The number to call is 1 (877) 309-3457; Passcode 801972877#

Information and tips on providing public comment.

• Sign in to speak when you get to the Commission or call in early.
• Listen for the prompt of when to speak. You may need to press a number on your phone to unmute yourself.
• Feel comfortable knowing that a very nice Administrative Law Judge for the Arizona Corporation Commission (regulators of APS) is running the public comment session. It is extremely rare that you will be asked a question. Typically, questions are only asked if clarification is needed – e.g., seeing if you are an APS customer.
• Prepare your comments, knowing you likely will have no more than 3 minutes to speak. The most effective public comments are those that speak from your experience/concern and are respectful, stick to the topic, and make your point(s) clear. It is helpful to note how long you have been an APS customer and it is nice to thank the Commission for the opportunity to provide comments.

2. Submit a letter to the Arizona Corporation Commission. While the opportunity to submit a letter will continue to exist for months, it is very helpful to provide comments in writing as soon as possible.

Tips on writing a letter. The Arizona Corporation Commissioners will decide whether or not APS gets the full rate increase they are seeking. Writing a letter is one of the most effective ways for Commissioners to know ratepayers are paying attention and don’t want to pay for unfair rates and fees. IF possible, please email your hand-written or typed letter to Diane at dbrown@arizonapirg.org with subject line: Letter on APS rate case. We will make sure your letter is properly submitted to the Commission. If you prefer, you can instead submit through the Commission’s online form: https://efiling.azcc.gov/online-services/utilities-public-comment-external or call the Commission at (602)542-4251.

1.   Add Docket Number: E-01345A-25-0105 near the top of your letter. For example:

Arizona Corporation Commission

1200 W. Washington St.

Phoenix, AZ 85007

Docket Number: E-01345A-25-0105

2.   Address the Chair, Vice-Chair and Commissioners. For example:

Dear Chair Myers, Vice-Chair Walden, and Commissioners,

Note if you are an APS customer, especially if you have been an APS customer for years. If you aren’t you can still write a letter, as the Commissioners are elected by Arizona voters.

State why you are writing – mentioning the main point(s) you want to get across in the first paragraph.

*Keep your comments tied to your utility bills/the rate case.

*Fine to be passionate but please be respectful.

*You aren’t expected to be an expert, what is important is providing your thoughts.

      *Write one paragraph or one page or something in between.

      Pick an item(s) APS is proposing and provide your thoughts such as:

      *How another approximate average $20 a month would impact you/your household

      *How you feel about the proposed various bill increases

      *What ‘just and reasonable’ utility bills mean to you

      *How you think Commissioners should stand up for ratepayers

      *What APS expenses you think are reasonable and what are unreasonable

5.   Restate your main thought and thank Commissioners for considering your views.

6.   Put your first and last name, address, and city or town and zip code on the bottom.

Sample letter (please do not copy the language)

Arizona Corporation Commission

1200 W. Washington St.

Phoenix, AZ 85007

Docket Number: E-01345A-25-0105

Dear Chair Myers, Vice-Chair Walden, and Commissioners,

I’ve been an APS customer for close to 10 years.

I’m writing today to urge you to look closely at what APS has proposed in their rate case and to make sure you are putting ratepayers before shareholders as you look at what they are requesting.

While $20 more a month for customers may not seem like a lot to APS, it is a lot to me and my family. I understand APS also has bills to pay but I’m counting on you to make sure they are fair. Right now, it seems like APS spends quite a bit of money on advertising and lobbying and not enough on programs to reduce energy waste.

Please carefully review APS’ proposal and put everyday consumers first.

Thank you for taking my views into account.

Sincerely,

Your first and last name

Your street address

Your city or town and zip code