Proposed APS rate hike still divisive

Arizona Public Service Co. has won over the state consumer advocate and the staff for utility regulators regarding its need for a rate increase, but the proposed hike still has a number of opponents, including AARP, energy conservation advocates and individual consumers.

One of the most frustrating elements for opponents is a proposal that would force new customers or current customers setting up new accounts to use either a “demand rate” or a time-ofuse rate for three months before they could switch to a basic rate plan that’s easier to understand.

They are also concerned over the proposed increase to $15 a month for the basic service charge, which is $8 today on the simplest rate plan. Consumers can’t mitigate that fee by saving energy.

“We think it takes away choices from consumers,” said Steve Jennings, associate state director for AARP, which boasts 860,000 members in the state. The group opposes both the service-fee increase and requirement for new customers to be on special rate plans.

AARP answered questions about the APS rate case at a town-hall meeting recently via telephone and 10,000 of its members joined the call, he said.

APS in June asked the Arizona Corporation Commission to allow it to raise rates by about $166 million a year, which would have meant an $11 a month average increase for residential customers. After closed-door negotiations, several parties in the rate case agreed to a $6 a month increase.

The commission staff and the state consumer advocate at the Residential Utility Consumer Office, which represents the interests of utility customers, signed onto the proposal. The five Corporation Commissioners still must vote on the deal and can amend the settlement before voting.

APS originally asked that nearly all residential customers use a “demand rate” that charges a fee based on the