Roughly 1.4 million Arizona residents may soon face higher electricity bills as Arizona Public Service (APS), the state’s largest utility, seeks approval for a nearly 14% rate increase.
The proposed hike follows a new policy adopted by the Arizona Corporation Commission (ACC) on December 3, allowing utilities to request annual rate increases using a streamlined formula rate-making process. This approach shortens the review period compared to traditional rate cases. APS’s parent company, Pinnacle West Capital Corporation, filed its application on June 13 under the new framework. If approved, the new rates would take effect on July 8, 2026.
While utilities using the formula-based system must still undergo a full rate case review every five years, APS’s latest request far exceeds its previous 8% hike approved in February 2024.
“For a typical residential customer using 1,000 kilowatt-hours of electricity, the net monthly bill impact would be about $20,” APS stated in a press release.
The new rate policy is backed by all five Republican members of the ACC and industry groups, who claim it reduces regulatory delays and creates more stable rates. But critics, including AARP Arizona, the Residential Utility Consumer Office, and Democratic Attorney General Kris Mayes, argue it undermines long-standing consumer protections and will result in higher costs.
“If APS’ 14% rate hike request is approved, Arizona consumers will pay an extra $20 on monthly electric bills beginning next summer,” Mayes said in a June 17 press release. “In 2024, APS increased rates by 8%, adding $12 per month. In 2023, it was another 8%, and 4.5% back in 2017. Arizonans already pay more for electricity than residents in 38 other states.”
APS President and CEO Ted Geisler acknowledged the burden rising costs place on customers.
“We understand it’s never a good time for bills to go up,” Geisler said. “We’re working to control costs while giving customers tools and choices to manage their usage. Reliability is essential in Arizona’s extreme climate. This rate case ensures we can continue meeting those needs.”
Despite APS’s justifications, public sentiment has overwhelmingly opposed the rate increase. As of June 22, customer comments submitted to the ACC were unanimously against the proposal. Among them was Sedona resident Bruce K. Misamore, who expressed frustration over fees imposed on solar users.
“The $80+ monthly charge just to access the grid is outrageous,” Misamore wrote on May 27. “Especially considering my system feeds excess power back into it.”
More details on the proposed rate hike are available at aps.com/ratecase and azcc.gov. Public comments can be submitted through the commission’s website by selecting “Meetings & Cases” and then “Make a Public Comment in a Docket.” Be sure to reference Docket Number E-01345A-25-0105.
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