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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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