Arizona AG Kris Mayes calls latest APS rate hike proposal a ‘blatant’ grab for profits

PHOENIX — Arizona Attorney General Kris Mayes called a proposed rate hike by the state’s largest electric provider a “blatant” grab for corporate profits.

Last week, Arizona Public Service (APS) filed an application with state regulators for a 14% increase. If approved, the APS rate hike would raise monthly bills by about $20 for the typical residential customer by the second half of 2026.

Mayes issued a statement Tuesday vowing to oppose the plan.

“My office intends to vigorously oppose the outrageous rate hike APS is trying to force on Arizona consumers and families already grappling with inflation, illegal tariffs and an overall astronomical cost of living,” Mayes said.

Mayes didn’t provide details about what her office could do to thwart the APS rate hike, which needs approval from the Arizona Corporation Commission (ACC).

APS, which is owned by publicly traded Pinnacle West Capital Corp., provides electricity for about 1.4 million customers statewide. The company’s service area includes a portion of Phoenix along with Valley suburbs to the west and north.

What is reasoning behind proposed APS rate hike?

APS CEO Ted Geisler told KTAR News 92.3 FM’s The Mike Broomhead Show on Monday the rate hike is needed to cover investments in grid reliability and operating costs.

“And the fact is, current rates have not kept up with what it actually costs to operate the grid to ensure its reliability,” he said.

Mayes has a different take on the reason for the request.

“This is a blatant attempt by Pinnacle West and APS executives to pad corporate profits at the expense of Arizona consumers,” the attorney general said. “After years of steady rate hikes, it’s unacceptable that this monopoly utility thinks it’s okay to take more of Arizonans’ hard-earned money.”

The new request was made a little over a year after state regulators approved the last APS rate hike. The 2024 increase raised rates by 8%, or about $12 for typical residential customer.

In addition, a change to the Power Supply Adjustment rate earlier this year added about $2.10 per month to the average customer’s bill.

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