By Taylor Johnson
Copyright hoodline
Arizonans facing a potential surge in their electricity bills caught a break when Attorney General Kris Mayes stepped in to challenge a hefty rate hike proposed by Arizona Public Services (APS). The Arizona Corporation Commission (ACC) has greenlit Mayes’ intervention against APS’s aim to increase electric rates by a staggering 14%, as reported by the AG’s office. Mayes was quoted as stating, “Arizonans are already feeling squeezed by sky-high electric bills and now APS is trying to jack them up even further.” She further emphasized the inappropriateness of allowing APS to capitalize on their monopoly to the detriment of Arizona consumers.
The proposed rate hike by APS, if approved, could see Arizona consumers dishing out an additional $20 on their monthly electric bills starting next summer. This increase would boost APS revenue by upwards of $580 million annually. Despite APS citing rising operational costs as the reason for the rate increase, it’s important to note that Pinnacle West Capital Corporation, APS’s parent company, reported a net income of $609 million the previous year. This proposed increase follows a series of previous rate hikes, with an 8% rise in 2024, another 8% increase in 2023, and a 4.5% hike back in 2017. According to a release by the AG’s office, Arizona residents are already grappling with electricity costs that surpass those in 38 other states.
A projection from Princeton University spells more worry for Arizonans, as it forecasts an uptick in annual energy costs. An estimated increase of $165 per household by 2030 and $280 by 2035 can be expected due to legislation passed by Congress this summer, aptly named the ‘One Big Beautiful Bill.’ These predictions add another layer to the urgency of Attorney General Mayes’ intervention, in a bid to ward off additional financial strain on Arizona’s residents.
APS, as Arizona’s largest electric service provider, has the reach that extends to homes and businesses across 11 of the state’s 15 counties. Therefore, the proposed rate adjustment carries significant implications for the majority of Arizona consumers. A detail that Mayes, who previously served on the ACC, is all too familiar with. “Giving APS another rate increase, after making more than $600 million in net income last year, is outrageous and I will not stand for it,” Mayes shared with the AG’s office. A copy of the procedural order of the rate case can be accessed here, providing transparency and insight into what exactly the intervention entails.
