APS president echoes old pitch when defending rate hike

Arizona Public Service President and CEO Ted Geisler said Friday that a proposed 14% rate increase for residential customers is necessary because the utility’s current rates are based on costs from 2021 and 2022.

“We’ve done everything we can to manage costs for our customers up until this point, but we need to be able to adjust rates to reflect the reality of current-day costs in order to be able to continue to provide reliable service,” Geisler told KTAR News 92.3 FM’s Arizona’s Morning News.

The request, filed in June 2025, would add about $20 a month to a typical household bill. It is the company’s third rate increase request in four years. The Arizona Corporation Commission is expected to vote on it in December.

Geisler cited sharp increases in equipment costs that have not yet been passed on to customers, stating that poles are up 70%, transformers are up 87% and electric cables are up 111%.

He made a similar case in 2024, when APS sought what became an 8% rate hike.

“This rate request is all about recovering costs for infrastructure that’s been in service for the last few years,” Geisler said at the time. “It was literally the infrastructure necessary to keep the lights on and the air conditioners running this summer.”

On Friday, Geisler struck a similar tone.

“Our rates today are still based on costs from 2021 and 2022,” he said. “This rate increase likely won’t take effect till the end of this year, beginning of next year, which means it’ll have been three years since we updated our rates, which means our rates are pretty outdated at this point. … My number one commitment is to make sure we’re here for our customers during extreme heat. We solve for heat. We make Arizona habitable, and we need to make sure that we’re there for our customers each summer during extreme temperatures.”

Data centers, protesters and energy assistance

“We are absolutely committed to ensuring that we are protecting customers against any cost shifts or rate increases due to data centers,” he said.

The proposal has drawn fierce opposition.

When hearings opened May 18, protesters packed two commission hearing rooms in downtown Phoenix. One audience member heckled Geisler over his $3.7 million salary.

Arizona Attorney General Kris Mayes, a former corporation commissioner, has publicly opposed the increase as well.

Geisler said APS spends about $60 million a year on energy assistance programs and urged customers who are struggling to call.

However, Geisler seems to be unaffected by people’s displeasure.

“No, rarely so,” Geisler said when asked whether anyone has ever been happy about a rate increase. “And frankly, that doesn’t bother me.”

“I think as a public service corporation, we are exclusively focused on the people of Arizona. We owe it to our customers to stand up and defend why we are asking them to pay more for the service we provide, and I take that very seriously.”

Related

Attorney General Kris Mayes links ‘outrageous’ 14% APS rate hike request to data centersDOJ monitoring polling sites for voting rights compliance in 3 Arizona counties on Election DayLive updates for Arizona’s 2026 primaries: DOJ says it’s watching polls in 3 counties‘We know it’s gonna be close,’ Gov. Katie Hobbs says as likely Andy Biggs matchup loomsTechnical issues disrupt a small number of Maricopa County voters on Election DayElection changes could lead to quicker results in Maricopa County, Adrian Fontes says