The Arizona Public Service (APS) is looking to raise rates by 8-15%, averaging around $10.50 more a month.
After a year-long review process, the Arizona Corporation Commission met on February 22, 2024, to discuss whether to allow the Arizona utility provider to raise its rates. The meeting ended in a 4-1 vote in favor of a rate increase, which would be effective on or around March 8, 2024, when finalized.
Added revenue from the APS rate hike will go toward maintaining and improving the company’s power grid, which serves close to 1.5 million customers across 11 Arizona counties. Currently, the utility provider depends on lenders to fund grid investments, which they feel is an unsustainable business model to secure a reliable grid during the summer months. According to the APS website, the rate increase will help to provide resilient power, a clean energy supply and a better customer experience.
Factors That Impact Your Monthly Bill Amount
The rate change will affect customers differently depending on their energy usage and current APS solar rate plan. Other factors affecting this include:
- How much energy you use
- What the weather is like
- How many days are in a billing cycle
- When you use energy (if you’re on a time-of-use plan)
What This Means for APS Customers
In addition to the rate increase, APS has added two more off-peak holidays for a total of 12+ off-peak days that align with federal holidays for time-of-use customers. The amendment will also impose a $2-$3 monthly fee for customers who installed their own rooftop solar systems. Solar customers who paid around $80 a month to be connected to the grid would now pay around $120 a month for the same service after the rate increase.
The total rate increase is composed of various components, with the base rate increasing, the Power Supply Adjustment decreasing and the Federal Environmental Improvement Surcharge being eliminated. As you prepare for a higher energy bill in the coming months, consider the following ways to monitor and save money.
- Compare Rate Plans: APS offers a rate comparison tool to help you determine the right rate plan for you based on your usage.
- Turn Off Unused Devices: When leaving the room, turn off lights and unplug any electronic devices not in use.
- Seal Leaks: To make the most of your heating and cooling, caulk up any windows and other leaks where air may escape.
- Set Up Alerts: Track your monthly energy usage by setting up alerts on your APS account.
- Go Solar: Switching to solar can help compensate for your home energy so you can rely less on the grid and save more money.
Make the Smart Energy Switch With Solar Optimum
With rate increases on the horizon, now more than ever is the time to install solar panels. At Solar Optimum, we’ll help you navigate every step, from accessing your home to helping you through the installation process. Contact us or download our Ultimate Guide to Going Solar to learn more about how using solar panels can reduce your energy bill.
