Utility customers in Arizona might be feeling a jolt in their wallets soon after the Arizona Corporation Commission approved a rate increase for Arizona Public Service (APS) customers. Critics and advocacy groups have slammed the decision, alleging that the vote was rushed, with Diane Brown, Executive Director of the Arizona Public Interest Research Group Education Fund, taking the front line in demanding a reconsideration. "APS ratepayers deserve to know what increases they are paying for and approximately how much more they can expect to pay each month," Brown stated in a letter to the commissioners, as reported by ABC15.
Despite the concerns raised by Brown, and others anticipating a déjà vu of the controversial 2017 APS rate hike, which saw actual bill increases threefold the expected amount, the Commission pushed forward. Commissioner Jim O'Connor was confident about the preliminary estimates, telling reporters "The rate we are guestimating is 8% bill impact," a statement that bears striking resemblance to days of yore, when statistical gambles were taken with significantly less at stake. O'Connor's comment came even as the commission admitted that number crunching was ongoing, according to ABC15.
In the aftermath of the 4-1 vote, APS issued a preliminary statement on the expected impact—an 8% or so increase in bills, amounting to roughly $10-$12 extra per month for the average residential customer. However, the full mathematical impact of the rate increases, including numerous changes to the proposed rate case decided on that Thursday, remains a floating variable with APS and Commission staff still calculating the finalized figures. This lack of concrete data has only intensified the scrutiny of the decision-making process, giving rise to outcries for transparency.
Chair Jim O'Connor appeared dismissive of predictions that the bill impact could surge as high as 15%, branding them as "hyperbole". "It’s just a mathematical calculation, ultimately," O'Connor told 12News. The remark, seemingly glib, reminiscent of a previous era's cavalier attitudes, sat at odds with the sentiment of ratepayers and advocates alike. The new rate plan is set to take effect on March 1st, with the commission and APS still reconciling final numbers.
In a nod to that past financial pain, Padgaonkar criticized the Commission for their hasty vote, without having definitive data on impact: "It appears that this Commission was too cavalier to even wait to quantify the ratepayer bill impact," Padgaonkar said, as noted by 12News. Whether this hike will mirror the fallout of 2017's decision remains a looming question for the nearly 1.4 million APS customers.
