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APS Files Rate Case to Maintain Reliable, Resilient Energy for Customers

Nov. 16, 2022
The case would strengthen the state’s grid at a time when extreme weather and increased demand place unprecedented reliance on the electricity system.

Arizona Public Service Co. has filed a rate case to meet the needs of its customers by ensuring the existing and future supply of reliable energy. The case would strengthen the state’s grid at a time when extreme weather and increased demand place unprecedented reliance on the electricity system.

APS invests more than $1.5 billion a year to maintain and grow Arizona’s energy infrastructure. That means replacing aging equipment, improving technology, reducing the impacts of power outages and increasing resiliency to wildfires and other threats.

In Arizona, regulated utilities such as APS must file a request with the Arizona Corporation Commission (ACC) for approval to recover costs. The open, public process ensures transparency to APS customers.  APS rates have stayed relatively flat since 2018.

“We have a responsibility to keep electricity as affordable as possible, while continuously expanding the grid to ensure reliability and energy resiliency,” said APS President Ted Geisler. “Our rates remain below the national average and have stayed flat since 2018. Our goal is to continue serving customers with top-tier reliability, but we need to recover recent costs so that we can keep up with Arizona’s growth.”

Beyond recovering the costs to maintain reliable and affordable service, the filing also reflects investments in cost-effective renewables, including new solar and battery storage, and upgrades to its power plants including Palo Verde Generating Station – the nation’s largest power producer, all of it clean and carbon-free. Customer-focused programs also are a priority, with the proposed addition of two off-peak holidays, the elimination of payment transaction fees and tiered discounts for limited income customers. In this rate case, which is proposed to take effect Dec. 1, 2023,

APS is requesting a net $460 million annual revenue increase. If approved as proposed, the monthly bill would increase 13.6 percent – about $18 or roughly 60 cents per day for an average residential customer using 1,023 kilowatt-hours – though the impact will vary based on individual energy use and service plan. Next steps in the ratemaking process, which typically lasts for at least one year, consist of the ACC setting a procedural schedule, which includes hearing dates and public comment sessions. The process concludes with a vote by the ACC commissioners. More information is available at aps.com/ratecase.

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