Get ready, Arizona residents – your electricity bills might be on the rise. Arizona’s two largest utility companies, APS and TEP, have officially proposed significant rate increases to the Arizona Corporation Commission (ACC). If approved, these changes could impact your household budget in the coming years.
What’s Being Proposed?
- APS is seeking a 14.5% rate hike for the average residential customer, which would take effect in July 2026.
- TEP is proposing an approximate 14% increase in residential customer rates by September 2026.
These are substantial increases that could notably affect your monthly expenses, especially as we head into the peak energy usage months.
Good News for Solar Homeowners (Relatively Speaking)
For those who have invested in solar power, there was some concern about a potential massive jump in the “Grid Access Charge” (GAC). Industry advocates feared this charge could go up by as much as $9 per kilowatt.
However, APS has proposed a much more modest increase for solar customers. The proposed updated charges would result in a maximum increase of about $6.46 per month for some customers. While any increase isn’t ideal, this is a significantly smaller jump than what was initially feared.
What Happens Next?
Both of these rate increase proposals are currently under review by the ACC. They will ultimately decide whether to approve these changes.
Why Does This Matter to You?
Understanding these proposed changes is crucial for managing your household budget and making informed decisions about your energy consumption. As utility costs continue to rise, exploring alternatives like solar energy, or simply being more mindful of your energy usage, becomes increasingly important.
Investing in solar with battery storage can allow you to generate your own power, reduce your reliance on the grid, and potentially store excess energy to use during peak rate periods or outages, further insulating you from future rate hikes.
Stay tuned for updates from the ACC as they deliberate on these critical proposals.
