Arizonians are bracing for a financial jolt as APS, the state's largest energy provider, gears up to introduce a significant rate hike come Friday. The increase will disproportionately impact schools, churches, rooftop solar customers, and particularly, small businesses with an average hike of 13.5%, according to 12News. In contrast, extra-large businesses are in line for just a 7.2% increase, stoking criticism and concern among the smaller players in the marketplace that already operate on slim margins.
Demands for energy spike as the mercury climbs, the hike's timing couldn't be worse for APS customers who already saw their electricity costs soar by 12% per kWh this summer compared to last, as per 12News analysis of APS financial reports. APS defends its position, claiming the need to recover from past expenses and to maintain strong credit for borrowing as the energy demand grows in the state.
APS's spokesperson, Jill Hanks, stated “While it might appear the rate increase hits smaller businesses disproportionately, the larger businesses are actually consuming much more energy – and paying much more of the overall pie, too,” Yet, this justification does little to console the rising apprehensions among smaller establishments that stand on the edge of sustainability. Meanwhile, Arizona Chamber of Commerce President Danny Seiden has thrown his support behind APS's proposed rate formula, citing in an interview with 12News the need to "invest" to avoid falling behind with energy supply issues.
Scrutiny on the proposed increase is high, with critics such as consumer advocate Abhay Padgaonkar accusing APS of attempting to pad APS's guaranteed profits. Meanwhile, the Residential Utility Consumer Office advocates for a more modest annual revenue increase of $85 million, far less than APS's request of $378 million. Amidst this tug-of-war, small businesses remain wary, given that schools and churches are already projected to see a 8-9% increase in their bills, which indicates a heavy load for pillars of the local community.
Saving grace options for concerned consumers include APS's price comparison tool and potential assistance from nonprofits like Wildfireaz.org, who offer confidential screenings for homeowners in need of help. As for small businesses, they are left to contend with the rising costs and the underlying sentiment of imbalance in the corporate energy arena, where an unequal burden can potentially jeopardize the very backbone of Arizona's economy, as outlined by 12News.
