APS files for rate case, intends to raise rates $5.74 %

Written By: Stratton Report
June 1, 2016

On June 1, Arizona Public Service announced that it had requested a rate case from the Arizona Corporation Commission. According to APS, this is the first comprehensive review of the company’s rates in five years.

APS is requesting a net increase of 5.74 percent, or $166 million annually, to support its operations and investments in the energy grid. The average monthly bill for residential customers would increase 7.96 percent.

Don Brandt, chairman, president and CEO of APS commented:

“Our proposal moves Arizona forward with continued investments in an advanced energy grid, a cleaner energy mix and new technologies that will enable our customers to have more choices and control.”

If approved, APS intends to invest $3.6 billion over the next three years in upgrades and maintenance for the energy grid; complete a $500 million investment to modernize the Ocotillo Power Plant; make a $400 million investment to reduce emissions at the Four Corners Power Plant and comply with more stringent federal environmental standards; and fund the continued development of innovative technologies such as battery storage, microgrids and advanced solar research.

APS also proposes changes to the rate options it offers to customers. For residential customers, the APS plan would offer the choice of three options with demand-based components; create a new flat-bill option for customers who don’t want to actively manage their energy use; provide a new rate option tailored for small-usage customers; and make changes to the on- and off-peak schedules.

For business customers, the APS plan would offer a new economic development rate option; create a new rate to attract businesses, such as data centers, that need affordable, highly reliable electricity; provide an aggregation rate that lowers energy costs for chain accounts such as grocery stores; and improve time-of-use options to work better with the operating schedules of many businesses.

APS is the principal subsidiary of Pinnacle West Capital Corp.