Arizona commission approves rate request by Arizona Public Service Co.

The Arizona Corporation Commission (ACC) approved a rate adjustment for Arizona Public Service Co. (APS) that seeks to recover costs spent to upgrade the electric system and invest in infrastructure.

Starting March 8, the average residential customer using 1,050 kilowatt hours (kWh) per month will see their bill increase about 8 percent, or about $10.50 a month. The increase will vary from customer to customer based on a variety of factors.

“APS and the 28 parties in the case were thoughtful, vigorous advocates for their respective interests,” ACC Chairman Jim O’Connor said. “Our constitutional obligation is to protect the interest of all ratepayers and ensure the grid is reliable. I believe today’s decision fulfills our duties. It means that rates are equitable and fair among customers. Arizona’s population and economy is growing at a rapid pace, and that means utilities must expand their infrastructure and service, as well. While Thursday’s decision was not easy, it is a necessary one to make sure utilities continue to meet the demand of our growing economy and maintain reliable service.”

Also. residential customers with rooftop solar will see an additional estimated $2-3 a month for an average 10-kilowatt solar system, to better align rates with the cost of service.

The rate includes various investments in maintaining reliability and increasing resiliency. Among them, APS crews replace aging power poles, conductors, and underground cables. It also cleared vegetation around equipment and hardened infrastructure against severe storms and wildfires. Further, APS installed and upgraded advanced grid technologies to reduce the occurrence and duration of power outages.

In addition, APS is expanding its clean energy sources like solar, wind and battery energy storage. With storage, APS can capture solar energy and store it for times when customer energy use is high, but the sun is not shining.

Also, businesses will see a change in rates based on their customer class. While the base rate will increase, the Power Supply Adjustment — which recovers costs for fuel and purchased power — is decreasing. Further, the Federal Environmental Improvement Surcharge — which recovers a portion of the costs to comply with federally mandated upgrades — is being eliminated as a line item, with those costs rolled into the base rate.

APS offers various services to help customers manage or lower their bills. Go to APS.com for more information.

APS serves approximately 1.4 million homes and businesses in 11 of Arizona’s 15 counties. The company is committed to serving customers with 100 percent clean power by 2050.