APS bills going up following rate hike
Arizona Public Service (APS) customers will be seeing higher bills soon after the state’s largest utility passed a rate hike that began Aug. 19
The Arizona Corporation Commission voted 4-1 to allow small rate increases and cuts to rooftop solar customers.
The rate hike includes increases in the basic service charge for some customers on simple rate plans and a change in the on-peak hours for time-of-use customers.
The revenue increase is the company’s first base rate increase in five years, with the typical monthly residential bill increasing 4.5 percent, or about $6 per month according to a press release from APS.
Solar customers currently receive a credit of 14.5 cents per kilowatt hour for providing electricity to the power grid. New solar customers will get 12.9 cents per kilowatt hour.
The agreement also includes:
• A $10 million to $15 million per year investment in an AZ Sun II rooftop solar program in which limited- and moderate-income customers would receive a monthly credit to allow APS to install rooftop solar systems on their homes;
• A $15 million refund of surplus energy efficiency program funds to customers;
• Increased program funding, annual crisis bill assistance and a simplified monthly bill discount for limited-income customers;
• Four new off-peak holidays, increasing the total number to 10.
The rate increase will average about $72 per year, with the average monthly bill rising from $135 to $141, according to APS.
The rate increase will generate an additional $94 million this year.
Customers do not need to take any immediate action.
People who pay a flat rate will find the basic charge has increased sharply. Some of those customers may see the figure go from $9 to $15 per month, with large-use customers seeing their base rate increase to $20.
Other rate structure changes include a time-of-use rate where the charge per kilowatt hour is higher during peak times but lower at off-peak times. Currently the higher rates are from noon to 7 p.m. The new structures puts peak hours from 3 to 8 p.m.
Of the commissioners, Bob Burns was the sole person to vote no. Burns said he did not believe a rate-hike was necessary.
Burns has been involved in court proceedings accusing APS and its parent company, Pinnacle West Capital Corp. of hiding political spending.
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