APS customers will see $6 average rate hike under settlement

Regional News

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Arizona’s largest utility company has reached an agreement with 30 other groups to increase electricity rates by $6 on average and institute optional demand rates for residential customers.

Arizona Public Service initially wanted residential customers to switch to demand rates, under which their electricity bill would depend on their use of power during peak times.

APS reached the settlement with Residential Utility Consumer Office, the state’s utility watchdog, the staff of the Arizona Corporation Commission, solar firms, and advocates for low-income Arizonans and senior citizens.

The agreement still needs to be approved by the five-member Corporation Commission.

Last year, APS sought an 8 percent rate increase, which would have translated to about $11 per month on average. Under the terms of the settlement, the average rate hike is about 4.5 percent or roughly $6 per month.

In a separate matter, solar companies and APS also agreed to keep solar issues off the ballot, as well as out of the Legislature and advocacy efforts. Last year, SolarCity briefly ran a ballot measure to protect net metering, a key solar incentive in which utilities were mandated to purchase excess energy from rooftop solar panels.