Phoenix, Arizona * Arizona Public Service (APS) has filed an application with the Arizona Corporation Commission (ACC) for a rate adjustment to support the reliability and resilience of its energy services. The new rates, if approved, are not expected to go into effect until the second half of 2026.
The proposed rate adjustment reflects a 13.99% net increase to revenue collection. For a typical residential customer using 1,000 kilowatt-hours of electricity, the net monthly bill impact would be about $20. APS last filed a rate case three years ago, and the ACC approved new rates in 2024 based on costs from 2021-2022.
The rate adjustment proposal is designed to ensure each customer group pays its fair share, allowing APS to manage rising expenses without compromising service quality. It includes adjusting rate design elements, updating the grid access charge for residential rooftop solar customers, and proposing a tool to make future rate adjustments more gradual on an annual basis based on the previous year’s expenses and investments.
APS is committed to supporting customers with their rate plans, flexible payment arrangements, and ways to manage bills and save money. The company offers residential customers the choice between three different rate plans to align with their energy needs, as well as tools to determine the rate plan that will save the most money based on their usage. Additionally, APS offers monthly discounts for qualifying customers, payment assistance programs, and free and interest-free payment arrangements.
The rate case process typically takes more than a year, including setting hearings, public comment sessions, and deadlines for participant evidence and testimony. An administrative law judge will guide and schedule the rate case, and the ACC commissioners will ultimately determine new rates based on the recommended opinion and order.
APS serves about 1.4 million homes and businesses in 11 of Arizona’s 15 counties and is a leader in delivering affordable, reliable, and clean energy in the Southwest. The market has reacted to these announcements by moving the company's shares 1.67% to a price of $90.70. Check out the company's full 8-K submission here.
