PHOENIX — Consumer advocates say they are alarmed by a proposal that would amount to a 15.5% increase in APS home utility bills. Arizona utility regulators vote on a final plan Thursday, along with a series of amendments by Republican commissioners intended to erode renewable energy programs.
Judge: Plan will allow APS to maintain financial integrity
Following months of testimony from witnesses and reams of data from engineers and accountants, the judge overseeing the hearing submitted a blueprint for the rate increase, allowing APS to collect a maximum profit margin of 9.55%, up from the current 8.9%.
Administrative Law Judge Sarah Harpring wrote in her recommendation that after “abundant and conflicting analysis from experts in the field,” she estimates her 9.55% plan will allow APS to “maintain and improve APS’s financial integrity” and “enable APS to attract capital” for future investments.
Consumer groups are concerned.
“It can really hurt folks on social security alone,” said Brendon Blake of AARP. “It’s not just the 15% you see, but there are additional riders that could make it even more.”
Amendments to plan include ending solar program
Proposed amendments offered by Republican commissioners include:
- An added “grid access” charge to rooftop solar customers amounting to 15% more than the rate increase to all customers
- Prohibition against APS using ratepayer-derived funds for marketing or advertising
- Terminate new sign-ups to the APS Solar Communities Program
- Terminate the “Bring Your Own Device” pilot program involving home energy storage technology
- A new “adjustor” that could result in additional charges (outside of rate cases) for the purpose of generating energy, including energy derived from coal
A representative of the solar industry says two of the proposals—the added charge to solar customers and the termination of the BYOD program—would continue what has been a dismal year under the current commission.
“Anything you can think of to do negatively for solar, this commission has done, or tried to do since beginning in 2023,” said Autumn Johnson of AriSEIA.
APS: Rate hike needed to maintain reliability
APS has relentlessly advertised through commercials and billboards a track record of reliability, though a J.D. Power Residential Satisfaction Study ranks it in the middle of the pack compared to its peers.
During the rate hearing, APS President Ted Geisler testified that what keeps him up at night is worrying whether the utility can build the grid fast enough to keep up with growth.
APS data since 2009 shows annual “peak demand” fluctuated most years but has risen since 2020, breaking a record this past summer.
Moving away from renewables and home technologies
There is fierce debate about how to address growing energy needs. Republican commissioners vow to lift regulations and terminate renewable standards. Renewable energy advocates want stronger pro-solar and home technology programs.
For example, rooftop solar contributed more than a gigawatt of power to the APS grid last summer, as much energy during certain times of the day as the Palo Verde nuclear plant generates for APS.
Home battery storage programs are promoted as the next phase in the green energy transition. They would allow homeowners to have “virtual power plants” that support the grid, even at night.
But Arizona is not moving in that direction.
The current commission’s philosophy may be best summarized by Chair Jim O’Connor (R), who in December decried what he called “a war on fossil fuels.” O’Connor vowed to oppose government programs aimed at promoting renewable energy.
Scientists warn against polluting energy sources
According to NASA and climate organizations worldwide, fossil fuel emissions are causing the globe to heat up to increasingly unsustainable levels.
“The severity of effects caused by climate change will depend on the path of future human activities,” says a policy statement by NASA. “More greenhouse gas emissions will lead to more climate extremes and widespread damaging effects across our planet.”
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