FOR IMMEDIATE RELEASE
February 23, 2024
Contact:
Caryn Potter, Southwest Energy Efficiency Project (SWEEP) | cpotter@swenergy.org, 602-312-1345
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[PHOENIX, AZ] – In a 4-1 decision Thursday night, utility regulators at the Arizona Corporation Commission (ACC) approved Arizona Public Service’s (APS) request to increase rates despite uncertainties regarding the impact on customer electric bills and the relaxation of reporting requirements, raising concerns about transparency and consumer protection. The Commission also raised APS’s profits with a Return of Equity from 8.7% to 9.55% without fully understanding the impacts of this decision on the amount that customers will pay every month.
This decision comes amidst a deluge of consumer comments filed at the ACC, reflecting widespread concern regarding their ability to manage utility bills.
The ACC also rejected proposals to make the cost of electric service to customers more transparent, including a sensible public reporting process on APS’s regional electric markets activities recommended by the Southwest Energy Efficiency Project (SWEEP). The Commission also approved a new capital investment adjustor called the System Reliability Benefits Mechanism that will allow APS to charge ratepayers for new power projects that aren’t in service yet – increasing the risk of overcharges.
“At a time when APS customers already feel the financial strain of last year’s bill increases, approving further rate hikes without a comprehensive understanding of their ultimate impacts is deeply concerning,” said Caryn Potter, Arizona Representative for SWEEP. “This decision highlights the necessity for APS to provide additional avenues for customers to reduce their monthly energy consumption. Among these, utility energy efficiency programs emerge as one of the most effective means for customers to alleviate the tangible effects of this rate hike.”
Approval of APS’s rate increase comes at the same time the Commission has announced its intention to repeal the Arizona Energy Efficiency Resource Standard, which has saved APS Customers more than 7.4 Million Megawatt Hours of energy, which is equivalent to the energy use of more than 660,077 homes per year.*
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The Southwest Energy Efficiency Project (SWEEP) is a public interest organization promoting greater energy efficiency and clean transportation in Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming. swenergy.org
*Calculated using the Environmental Protection Agency’s Greenhouse Gas Equivalencies Calculator: https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator
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