APS (Arizona Public Service) cost is on the rise

APS (Arizona Public Service) has been raising rates in recent years. The company has cited a number of reasons for the rate increases, including:

Increasing costs of fuel: The cost of fuel, such as natural gas and coal, has been rising in recent years. This is due to a number of factors, including increased demand for natural gas from other countries and the closure of coal-fired power plants in the United States. According to the U.S. Energy Information Administration (EIA), natural gas provided 42% of Arizona’s electricity in 2022. This was the largest source of electricity generation in the state, followed by nuclear power and coal.

Decreasing investment in new power plants: As mentioned earlier, there has been a decrease in investment in new power plants in recent years. This is due to a number of factors, including the rise of renewable energy and government regulations. This has made it more difficult for APS to meet the growing demand for electricity, which has led to higher rates.

Increased environmental regulations: Environmental regulations have made it more expensive for APS to operate its power plants. This is due to the need to install pollution controls and to comply with other regulations.

The rate increases have been met with criticism from some customers, who argue that APS is gouging customers. APS has defended the rate increases, saying that they are necessary to cover the company’s costs and to invest in new infrastructure.

In 2023, APS proposed a 12% rate increase for residential customers. The Arizona Corporation Commission (ACC) approved a 9.4% rate increase, which went into effect on December 1, 2022. The ACC also approved a 10% rate increase for commercial customers.

The APS rate increases are expected to add an average of $100 per month to the bill of a commercial customer who uses 10,000 kilowatt-hours per month.

The fact is, APS benefits from large profit margins. Its profits have increased by more than 50 percent since 2008. Arizona Public Service (APS) electricity rates are generally higher than Salt River Project (SRP) electricity rates. In 2022, the average residential customer of APS paid 15.43 cents per kilowatt-hour (kWh), while the average residential customer of SRP paid 11.93 cents per kWh.

Also, it is important to know that the Arizona attorney general’s office has accused APS of violating a consumer protection law involving unfair practices and suppression of facts and the FBI has an ongoing investigation of the miss dealing of APS (Arizona Public Service).

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