Phoenix— On Tuesday, October 26, 2021, Arizona Corporation Commissioner Justin Olson will move his amendment to the Arizona Public Service (APS) rate case to provide its customers with alternatives for procuring their power.
Earlier this month, the Commission held a three-day Special Open Meeting for members of the public, APS officials, and other parties to weigh-in on the APS pending rate application.
The company is seeking a 5 percent rate increase.
“My amendment frees captive APS customers and empowers them to choose what company will provide energy to their homes. This amendment will unleash the powerful forces of the marketplace to benefit all Arizonans,” argues Olson. “Arizona state law is clear that “…a competitive market shall exist in the sale of electric generation service” A.R.S. § 40-202(B).”
Olson says that despite the law, competitive power companies have had applications pending in front of the Corporation Commission for more than a decade with no action taken by the Commission.
“It’s time that the Corporation Commission complies with state law and authorizes competitive power companies to provide energy services to Arizona residents,” said Olson, who is currently running in the U.S. Senate Republican Primary. “Customers deserve an alternative to the government granted monopoly.”
“In the State Legislature, I fought for and delivered balanced budgets, low taxes and economic growth. I was an unwavering voice for secure borders, the right to life and the second amendment. At the Corporation Commission, I have worked to protect Arizonans hard earned resources and to advance free markets,” said Olson, who pledged to to the same if elected to the U.S. Senate.”
Commissioner Lea Márquez Peterson also filed an amendment which proposes the company reduce costs and achieve average retail rates of $0.09/kWh by 2030 via a plan that would span multiple years and multiple rate cases. APS’s current average retail rate is $0.1172/kWh.
With the rate case open, Peterson believes there is still an opportunity to achieve rate relief for customers, without degrading the state’s regulatory compact or the utility’s financial health and ability to provide safe and reliable service in our state.
The company’s last rate decrease was in 1996, which was a part of a comprehensive, multi-year, multi-rate case plan beginning in 1991 to rein in the company’s operating expenses and achieve operational excellence in the midst of impending retail electric competition in Arizona.
APS has already stated they plan to file their next rate case as soon as summer of 2022.