APS awaits final decision on proposed rate increase

By Yellow Sheet

The Arizona Corporation Commission just wrapped up its most intense rate case hearing in decades, driven by conversations about data center growth, scorching temperatures, skyrocketing energy demand and formula rate policy.

A gaggle of attorneys, commission staff and utility representatives spent 31 days between May and July litigating every aspect of Arizona Public Service’s 14% rate-increase request before an administrative law judge. The hearings finally wrapped up last week, bringing the rate case one step closer to a final decision on whether APS ratepayers will see their utility bills increase, and if the company will be able to seek annual rate adjustments going forward.

According to the commission, over 30 parties participated in the case, questioning over 50 witnesses, examining more than 300 exhibits and submitting over 3,000 data requests to APS. Many of those conversations and documents focused on APS’ first-ever request for a formula rate adjustment mechanism, known as a “FRAM.”

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