On February 22nd, the Arizona Corporation Commission is scheduled to review the APS rate proposal during a public meeting.

In a recent rate hearing of utility company APS, Judge Sarah N. Harpring released her recommendation for a potential increase in APS rates.

Harpring is in charge of the ongoing APS rate case, a formal process to determine the just value of the company and establish new rate schedules for its customers. In regards to the utility, Harpring suggested a Return on Equity (ROE) of 9.55%. While this recommendation is below APS’s proposed 10.25%, it is still more than 1% higher than the 8.2% ROE recommended by the state consumer agency, RUCO.

Every small percentage represents a significant variation in the potential profit margin worth millions of dollars for the utility company.

On February 22, the Arizona Corporation Commission will hold a public meeting to discuss the APS rate request.

APS has stated that their proposed increase in rates is crucial to maintain dependable and strong energy provision to around 1.4 million individuals in Arizona. The involved parties in this matter include unions, community organizations, supporters of renewable energy, and educational institutions.

The proposal put forth by APS will affect customers in various ways.

The proposed rate increase for small businesses and schools by the company is higher compared to that for large companies.

According to federal records filed by APS, the average cost per kWh for APS customers in the summer of 2023 was 12% higher compared to the previous summer.

The rise in costs is a direct outcome of the commission’s decision in the previous year to actively compensate the utility for increased fuel expenses during the pandemic and to resolve a long-standing legal conflict.