The Arizona Corporation Commission approved a large rate increase for Arizona Public Service Company during the February 22, 2024, special open meeting. Already struggling ratepayers will see an average monthly bill increase of between $10 – $12 a month.
APS requested a Return on Equity (ROE) of 10.25 percent, the Commission responded in a 4-1 vote to adopt a slightly smaller ROE of 9.55 percent with a return on the fair value increment (FVI) of 0.25 percent, for a whopping 8 percent increase effective March 1, 2024.
I was the only Commissioner that voted NO on APS rate case. Proud to advocate for residential/small business customers across Arizona who deserve better than continuous rate increases.
— Anna Tovar (@AnnaTovarAZ) February 23, 2024
The Commission approved an additional fee for residential customers who have solar systems connected to the grid. Assuming a 10KW system, it would range between $2.29/month and $2.56/month depending on the customer’s rate plan. Customers with smaller systems will pay less.
Commissioner Jim O’Connor praised the vote to increase costs on struggling Arizonans, calling APS “thoughtful,” and the increase “necessary.”
“APS and the 28 parties in the case were thoughtful, vigorous advocates for their respective interests,” said O’Connor. “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,” said Chairman O’Connor.
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