Photo by Gage Skidmore | Flickr CC BY-SA 2.0
BY REAGAN PRIEST | STATE AFFAIRS
Attorney General Kris Mayes is recommending a 3% rate increase for Arizona Public Service customers, rather than the company’s proposed 14%.
Mayes’ office filed expert testimony to the Arizona Corporation Commission in APS’ recent rate case arguing that the company’s “proposed shareholder profit level is significantly higher than what it actually costs to attract and retain investment.”
The expert recommends the commission approve a rate of return for the company’s shareholders that equals the actual cost of capital, which is the minimum return investors require in order to provide money to APS, rather than a return on equity. Mayes’ office argues that APS is asking for a much higher rate of return in order to maximize shareholder profit at the expense of ratepayers.
“APS is asking Arizona families to foot the bill for shareholder profits that far exceed what any reasonable investor requires,” Mayes said in a statement. “This is just corporate greed run amok.”
In its rate application, APS said its 10.7% proposed rate of return is “a reasonable return commensurate with the Company’s current investment risks and would enable APS to effectively compete for the capital necessary to ensure a reliable and resilient grid.”
