Here’s why APS energy customers will soon see another rate increase

PHOENIX — Arizona Public Service (APS) energy customers will soon see another rate increase after state regulators signed off on a proposed adjustment this week.

The new Power Supply Adjustment (PSA) rate will go into effect March 1. The increase of $0.002 per kWh will raise the average APS residential customer’s monthly bill by $2.10 per month, according to an Arizona Corporation Commission press release.

The PSA is an annual adjustment that can go up or down based on the cost of fuels used to generate energy and the cost of purchasing energy from other companies. A PSA rate increase doesn’t result in a profit for the utility.

Regulators questioned APS about adjustment

The annual adjustment goes into effect automatically unless the ACC, the state’s utility regulatory board, decides to review it.

The ACC reviewed this year’s proposal and questioned APS, which has about 1.4 million customers, about its calculations before approving it in a unanimous vote on Wednesday.

Arizona’s largest energy provider said it currently has an undercollected balance of about $290 million for fuel costs. The PSA increase will save ratepayers an estimated $20 million a year in interest, the ACC said.

A year ago, the ACC approved an 8% APS rate hike that increased the typical residential customer’s monthly bill by $10-$12.

The utility company has a webpage with information about how its customers can save on their bills.

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