Corina Vanek
Arizona Republic
APS customers will see their bills increase this summer after the Arizona Corporation Commission approved a settlement with the utility to end a legal battle that has lasted years.
The commission voted 4-1 in favor of the settlement, which will cost average residential ratepayers about $1.84 per month more beginning in July. The settlement adds a fraction of a penny to every kilowatt-hour of electricity that customers use, so households using more than average APS customers will pay more than the forecasted amounted.
Commissioner Anna Tovar was the lone vote against the proposal.
The settlement came after the Arizona Court of Appeals ruled that the Corporation Commission, which regulates utilities, overstepped its authority in 2021 by not allowing APS to charge customers for required upgrades to a coal plant in New Mexico, and by reducing the company’s profitability as a punishment for poor customer service.
In 2021, the commission voted to cut APS’ return on equity from 10% to 8.7%. The commission also decided that APS could not charge customers to recoup costs of upgrades it made to the Four Corners Power Plant near Farmington, New Mexico.
APS sued over the decisions, and an Arizona Court of Appeals decision left APS and the commission negotiating a settlement.
