Recommendations to protect APS ratepayers

Arizona PIRG Education Fund submitted our final recommendations on the proposed APS rate case prior to the Arizona Corporation Commission, regulators of APS, receiving its recommendation from the Administrative Law Judge.

Our initial brief recommended the Commission reject APS’s proposal for formula rates; set the return on equity lower than the amount they currently allow investors to receive; reject an increase in the monthly basic service charge; allow a modest rate increase vs. what APS proposed; ensure the “growth pays for growth” concept is comprehensively applied for large-load customers, including data centers; establish safeguards to prevent ratepayer funds from being used, directly or indirectly, to support general marketing, advertising, sponsorship, and/or charitable donations; and support programs that provide customers with meaningful opportunities to reduce their utility bills.

After reviewing filings by other intervenors, we expanded upon our recommendations and included our long-standing position that the Commission should return to a 90-10 cost-sharing mechanism for the Power Supply Adjuster and direct APS to undertake a comprehensive review of its gas hedging strategy.