APS Seeks Bold 14% Rate Increase for Homeowners

By Matthew Holloway |

Arizona Public Service (APS) has recently sought a $579.5 million revenue increase from the Arizona Corporation Commission (ACC). This request would raise residential electrical rates by approximately 14.5%, amounting to a total increase of 30% since 2023.

Alongside the revenue hike, APS is asking the ACC for authority to adjust prices annually through “rate design schedules.” In a comprehensive 2,323-page application, the utility attributed its request to soaring inflation, ongoing high interest rates, and instability in supply chains and trade policies.

APS contended that a significant revenue deficiency, based on data from December 31, 2024, indicated its current rates insufficiently support reliable service delivery.

It’s worth noting that APS and its parent firm, Pinnacle West Capital Corp., managed to allocate $250,000 for Governor Katie Hobbs’ inauguration, in addition to funding her legal disputes with Kari Lake with $100,000.

“The tremendous growth across APS’s service territory shows no sign of letting up,” the company stated. “Yet, rising costs to serve current customers, compounded by inflation and interest rate concerns, are substantially higher than prior assessments.”

In a similar context, the ACC approved an 8% rate increase for residential customers just a year prior. This decision was made amid a Republican majority on the commission after the recent election cycle, with newcomers Rachel Walden and Rene Lopez joining incumbent Lea Márquez Peterson.

Looking ahead to the 2026 elections, Arizona Reps. David Marshall and Ralph Heap are challenging incumbent Commissioners Chairman Kevin Thompson and Vice Chairman Nick Myers. During a press conference, the challengers criticized current commissioners for imposing excessive rate increases, suggesting these actions negatively impact families who struggle to balance bills.

Marshall stated, “Some families face the dilemma of buying groceries or paying for power.” He stressed the Corporation Commission’s significance, noting, “Decisions made there affect every one of us.”

In response, Commissioners Thompson and Myers defended their record, affirming their commitment to responsible utility planning. They highlighted their requirement for APS to demonstrate adequate energy generation in its 2023 Integrated Resource Plan and their initiative to discontinue an outdated Renewable Energy Standard that inflated utility costs.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.