News Summary
Arizona Public Service (APS) is seeking a 14% increase in electricity rates starting in 2026, potentially increasing customer bills by about $20 monthly. The proposal has drawn criticism from the Arizona Free Enterprise Club and the Arizona Attorney General, citing financial burdens on families amid rising living costs. APS defends the increase as vital for supporting battery storage projects and maintaining grid reliability, while opponents argue it prioritizes green energy over consumer well-being. Public hearings will be held to gather community input on the proposal.
Arizona Public Service (APS) is seeking a 14% increase in electricity rates that would commence in 2026, potentially adding an estimated $20 to the monthly bill for typical customers using 1,000 kilowatt-hours of electricity. This proposal has garnered significant attention and criticism from various groups, particularly the Arizona Free Enterprise Club (AZFEC), which argues that such a rate hike would place an undue financial burden on Arizona families and unnecessarily subsidize costly green energy initiatives.
APS justifies the proposed rate hike by indicating that the funds are necessary to support battery storage projects and to facilitate the early closure of the Cholla Power Plant. The company has claimed that the new rates are essential to cover rising operational costs and to ensure the reliability of the energy grid, which has been impacted by inflation and supply chain issues.
In opposition, AZFEC has filed a formal response against APS’s proposal. They criticize APS for trying to block their intervention, while allowing environmental groups like the Sierra Club to take part in the discussions. AZFEC President Scot Mussi has stated that APS is prioritizing commitments to carbon-free energy over the financial well-being of customers throughout Arizona and accused the company of adopting voluntary decisions that have led to increased costs for consumers.
The Arizona Free Enterprise Club has successfully been granted intervention in the APS case, enabling them to represent consumers who oppose the proposed rate increase. An Administrative Law Judge overseeing the case has recognized AZFEC as the “lone proponent” in favor of energy reliability and affordability amidst the ongoing debate.
Arizona Attorney General, Kris Mayes, has also declared plans to vigorously oppose the rate hike, arguing that consumers in Arizona are already grappling with inflation and increased living costs. Mayes has raised concerns over multiple rate increases originating from APS in recent years, including adjustments of 4.5% in 2017, 8% in 2023, and another 8% planned for 2024. The Attorney General emphasizes the need for accountability from APS and the Arizona Corporation Commission (ACC), which regulates utilities in the state and has faced criticism for routinely approving rate increases without sufficient consumer protection measures.
If the proposed increase is approved, it would become effective “no earlier” than July 8, 2026, following a comprehensive review process by the ACC. The case will include public hearings and comment sessions, providing opportunities for community members to express their opinions and concerns regarding the proposed rate changes.
APS has made commitments towards achieving carbon neutrality, yet the company is facing backlash for decisions that could affect energy costs for consumers. As it seeks to balance its environmental goals with the financial realities facing Arizona families, the forthcoming review by the ACC and public input may play a crucial role in determining the fate of the proposed rate hike moving forward.
Arizona residents are encouraged to participate in the upcoming public hearings to voice their concerns and opinions on the proposed electricity rate increase, as it stands to significantly impact both their monthly expenses and the broader implications for energy cost management in the state.
Deeper Dive: News & Info About This Topic
- Arizona Free News
- AZ Family
- East Valley Tribune
- Phoenix New Times
- ABC 15 News
- Wikipedia: Electricity Pricing
Author: STAFF HERE PHOENIX WRITER
The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
