Don’t want higher APS bills? Time to weigh in – Diane Brown

If you are an APS customer you’ve likely heard they want to raise rates by an average of 14%, an average of $20 a month or $240 a year. What you may not know is that APS doesn’t always get what it wants. The last time they wanted to raise rates they proposed close to $700 million and the elected members of the Arizona Corporation Commission – their regulators and ultimate deciders on their proposal – granted them $500 million.

APS customers that express their perspectives, and intervenors that scrutinize and provide evidence contradictory to the utility’s position, offer counter proposals for Commissioners to consider. As we’ve talked in person with residents in over 50 municipalities in our state, including Prescott and Prescott Valley, there were a number of common themes that ratepayers told us they want Commissioners to keep in mind. Overall consumers are pleased with the reliable electricity service they receive and positive about the company’s customer service. Consumers also understand that the utility is a business, costs have increased, and the utility is entitled to recover sensible expenses, such as maintaining infrastructure.

However, APS customers also told us they think an average 14% rate increase is unreasonable, particularly on the heels of the utility’s recent rate and bill increases. Ratepayers are overwhelmingly skeptical of formula rates, which could result in annual increases for the next five years based on the formula to be created and approved in this case. Therefore, it is not surprising that consumers are concerned that if formula rates and the proposed rate get approved, the average 14% rate increase could be a baseline for the next five years. And most APS customers did not have an issue with shareholders making a return on their investment, although they deemed a return on equity of over 10% excessive and want the company to be more focused on its customers vs. its shareholders.

In addition, consumers in both rural and urban areas are worried about costs associated with data centers. Arizona PIRG Education Fund heard a significant level of distrust from APS customers regarding the definition of “growth pays for growth” and want to ensure that no data center expenses will be covered by residential or small business ratepayers in either the short or long-term.

Whether you agree or disagree with sentiments provided from residents in Prescott, Prescott Valley, and elsewhere, or have additional praise and/or concerns on topics such as a proposed increase in the monthly service charge, grid access charge for solar customers, or the amount of advertising and sponsorships carrying APS’ name, what matters most is providing your thoughts on what is ‘just and reasonable’.

On May 18 at 10:00 am, the Arizona Corporation Commission is holding a public comment session. To call or listen in, dial 1(877)309-3457; Passcode 801972877#. You can also call the Commission at (602)542-4251 before or after that day and they will take and pass along your comments. Don’t want higher APS bills? Time to weigh in.