ARIZONA NEWS

APS says rate hike vital to keep homes in Phoenix powered, recover infrastructure costs

Aug 4, 2023, 1:00 PM

solar panels working to power the grid...

(Arizona Public Service Photo)

(Arizona Public Service Photo)

PHOENIX — As a rate increase for Arizona Public Service customers is on the horizon, the president of the company said it is necessary to recover infrastructure costs and to continue powering Phoenix homes.

Regaining infrastructure costs, coupled with flat rates from 2018-22, prompted a proposed rate increase, APS President Ted Geisler told KTAR News 92.3 FM’s Arizona’s Morning News on Friday. The rates would go into effect by Dec. 1 if approved by the Arizona Corporation Commission.

“This rate request is all about recovering costs for infrastructure that’s been in service for the last few years,” Geisler said.

“It was literally the infrastructure necessary to keep the lights on and the air conditioners running this summer.”

The energy infrastructure for the state’s largest public utility withstood extreme temperatures this summer, breaking an all-time power demand record in mid-July. Phoenix was under an excessive heat wave warning that saw 31 days of high temperatures above 110 degrees last month.

Earlier this year, Geisler said a proposed monthly base rate hike of at least 23% is necessary, but most customers wouldn’t see that large of an increase.

He said on Friday that the average customer would see an average rate increase of 11.3%.

“At some point, we got to begin to recover those (infrastructure) costs so we can continue to invest in the grid and make sure that just like we got through this summer with reliable service, we can do that next summer and the summer thereafter,” Geisler said.

The final public hearing on increased rates is on Thursday.

Will the rate hike pass through the Arizona Corporation Commission?

“We’re in the middle of the process. It’s a formal proceeding where we actually present all of the investments that we’ve made to maintain reliability for our customers to an administrative law judge. Ultimately, the Corporation Commission decides for us,” Geisler said.

However, he noted that all the investments are already in use.

“So our job is to make sure that we continue to serve reliably, we demonstrate the infrastructure that it takes to do that and then we ultimately get fair recovery of those costs so we can continue to invest in Arizona’s energy infrastructure,” he said.

Struggling and need help? APS has options available

Geisler said about $60 million annually goes toward crisis bills, energy support programs and connecting customers with grants.

“But I got to tell you, we can’t help our customers unless they let us know that they need help,” he said.

Customers can contact the utility service by phone at 800-240-2014 or online for financial assistance, but Geisler said two things can be done at home that can also help alleviate wallets.

“One is, for every degree that you increase your thermostat, it’s about 2-3% in savings right off the bat,” Geisler said.

“But the second is, we offer customers a discount if they save a little bit of energy use during 4 p.m. to 7 p.m. Monday through Friday.”

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Comments

Comment guidelines: No name-calling, personal attacks, profanity, or insults. Please keep the conversation civil and help us moderate comments by reporting abuse.
comments powered by Disqus

Arizona News

Phoenix Children's...

Angela Gonzales/Phoenix Business Journal

Phoenix Children’s walks away from giant health insurance contract

Phoenix Children's, one of the nation's largest pediatric health systems, turned down an $80 million offer from one of Arizona's largest health insurers in a heated contract dispute.

1 hour ago

Judge gavel and baby crib...

Payne Moses

Suspect arrested 38 years after sexual assault, kidnapping case opened in Phoenix

After 38 years, a suspect accused of kidnapping and sexually assaulting a Phoenix toddler was identified and arrested.

2 hours ago

Donald Trump Liz Cheney...

KTAR.com

Arizona AG’s office investigating whether Trump’s Liz Cheney comments broke the law

The Arizona Attorney General's Office is investigating whether comments Donald Trump made against Liz Cheney at an event in Glendale on Thursday night broke the law.

2 hours ago

A Phoenix man purchased guns from a Tempe firearms dealer that were used in a California hate crime...

Kevin Stone

Phoenix man sentenced for lying while buying guns used later in California hate crime

A Phoenix man was sentenced to prison this week for lying while buying guns that were later used in a hate crime in California.

3 hours ago

Mama bear...

Danny Shapiro

Wildlife officials relocate mama bear, cubs from Arizona town

A mama bear and her cubs were getting too comfortable with human areas in an Arizona town and were moved to another location, authorities said Friday.

4 hours ago

Follow @suelenrivera...

Sponsored Content by Day & Night Air Conditioning, Heating and Plumbing

Why a Heating Tune-Up is Essential Before Winter

PHOENIX, AZ — With cooler weather on the horizon, making sure your heating system is prepped and ready can make all the difference in staying comfortable this winter.

Sponsored Articles

...

Morris Hall

West Hunsaker, through Morris Hall, supports Make-A-Wish Foundation in Arizona

KTAR’s Community Spotlight this month focuses on Morris Hall and its commitment to supporting the Make-A-Wish Foundation in Arizona.

...

Collins Comfort Masters

Collins Comfort Masters: Leading the Way in HVAC and Plumbing Services in Arizona

Tempe, AZ – Since its inception in 1985, Collins Comfort Masters has been a cornerstone in the HVAC and plumbing industry in Phoenix and the surrounding Valley.

...

Day & Night Air Conditioning, Heating and Plumbing

It wouldn’t hurt to get your AC checked after Arizona’s excruciating heat wave

A well-maintained air conditioning unit is vital to living a comfortable life inside, away from triple-digit heat in Arizona.

APS says rate hike vital to keep homes in Phoenix powered, recover infrastructure costs