Arizona Public Service (APS) officials are gearing up to request a rate increase from the Arizona Corporation Commission, just one year after the commission approved an 8 percent rise in the average residential bill, as reported by ABC15. The formal rate case, expected to be filed in June, cites rising costs attributed to inflation, high-interest rates, and a volatile supply chain, although specifics of the rate hike are yet to be disclosed by APS.
Community watchdog groups are voicing their disapproval over the potential increase which, if sanctioned, wouldn't take effect until at least July 8, 2026; last year, the Arizona Corporation Commission, consisting of five elected members, implemented a new strategy that allows utilities the choice of seeking updated rates annually, a method that Commissioner Nick Myers argued promotes smaller, regular rate increases rather than infrequent, substantial hikes, with him stating, “Customers want this,” as noted by ABC15.
Meanwhile, APS has proposed a one-time credit for May 2025 to customers who pay the Environmental Benefits Surcharge, with the credit decision anticipated to be made at the ACC's April 22 meeting, informed by APS's press release. This surcharge funds renewable projects and energy efficiency initiatives, including Limited Income Weatherization and APS's Virtual Power Plant program—programs that did not exhaust the funds collected due to higher customer energy usage and the success of initiatives like Green Power Partners.
The utility company hopes to pass the savings to customers as a more substantial one-time credit rather than spreading it out over time, stating, “These are renewable projects, energy efficiency programs like Limited Income Weatherization (which refers to modifying a home or building to improve its resistance to the effects of weather), customer and load management programs and our Virtual Power Plant program,” as per Kerri Carnes, APS Director of Customer Technology, in information obtained by APS's announcement. The credit amount hinges on individual energy usage with an average estimate of a $23 reduction for a typical residential customer. In addition, APS continues to support customers through energy bill management programs and energy use tips, including Budget Billing, the Most Economical Plan tool, various rate plans, and the Home Energy Checkup service, aiming to provide not only financial relief but also practical solutions for efficient energy consumption.
