Arizona Public Service seeks $580 million utility rate hike

Arizona Public Service (APS), the largest electric utility in Arizona, is seeking a rate increase of approximately $580 million in annual revenue following an extensive 31-day regulatory hearing. The proposed net base rate increase of roughly 14 percent would result in an estimated $20 monthly increase for a typical residential customer using 1,000 kilowatt-hours.

The utility cites rising infrastructure expenses as the primary driver for the request. The proceeding has gained national attention due to debates over a proposed Formula Rate Adjustment Mechanism and a requested rate increase of over 45 percent specifically for data center customers. The Arizona Corporation Commission is currently reviewing the case, with a recommended order expected following the conclusion of the hearings.