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Arizona Public Service Company (APS) is asking the Arizona Corporation Commission for a rate increase that extracts $460 million more from captive ratepayers, a whopping 13.6% net increase on monthly bills.

We understand public utilities like APS have capital needs and variable costs that periodically require rate increases to ensure a reliable supply of energy and meet expected peak demands.

What we don’t understand is why APS is asking us to pay hundreds of millions more so they can continue to operate the inefficient coal fired Four Corners power plant into the next decade. Especially since there are cheaper and cleaner ways to serve the public that don’t carry the public health impacts such as increases in asthma and bronchitis that prolonged burning of fossil fuels does in communities. 

Since the last rate case, APS has spent hundreds of millions of dollars in capital expenses, operations, and maintenance at the inefficient Four Corners Generating Station and Cholla Power Plant. Now the company is asking us to pony up hundreds of millions more to keep Four Corners running until 2031 even though it is no longer economical to run and more costly than clean energy alternatives. 

With better planning, the utility could get cleaner energy sources with lower operating costs that would moderate this excessive rate increase request.

APS Doubles Down on Coal & Sticking Us with the Tab

Arizona Republic, June 27, 2023

APS could save ratepayers money, reduce pollution, and moderate their rate increase request by retiring the Four Corners Power Plant before 2031 and replacing it with lower-cost renewable energy. At a minimum, their plan should switch Four Corners to seasonal operations this year as APS originally promised. 

APS’ rate increase should also include more investments in energy efficiency, which can also reduce customer bills and lessen the burden on people with low incomes. They should be doubling down on investing in energy efficiency technologies like incentives for buying programmable thermostats, increasing incentives to participate in time-varying rate plans that reduce peak load without removing home comfort, and incentives for people to install more efficient HVAC systems, refrigeration, pool pumps, and industrial motors.

We understand utilities like APS require periodic rate increases to plan for growth, meet customer needs, and accommodate peak loads. However, APS’ request focuses too much on expensive and dirtier energy sources and not enough on cheaper, cleaner solar and wind, and more energy efficiency.

We urge the Arizona Corporation Commission to ask APS to go back to the drawing board and come back with a more reasonable proposal that focuses more on cheaper renewable energy and better leverages energy efficiency. 

Will Humble is executive director for the Arizona Public Health Association. Sandy Bahr is director of Sierra Club’s Grand Canyon (Arizona) Chapter. Reach them at willhumble@azpha.org &sandy.bahr@sierraclub.org and on Twitter at @willhumble_az & @SLBahr

1. Be sure to include the docket number at the top of your comments – Docket Number E-01345A-22-0144
2. Use the talking points listed below for your comments, plus include any specific reasons you are concerned about this rate case. Tell your story!
3. You can mail your comments to:  Arizona Corporation Commission, Consumer Services Section, 1200 West Washington, Phoenix, AZ 85007
4. You can submit your comments electronically or ask us to drop them off for you.