Arizona Public Service (APS) is preparing to implement a significant rate increase for its customers starting in December 2023. This proposed rate hike, outlined in a recent filing, seeks to generate an additional $460 million in annual revenue to cover rising operational costs and fund essential infrastructure improvements.

The Arizona Corporation Commission (ACC) is currently reviewing the proposal, which will impact both residential and commercial customers if approved. APS has emphasized that the additional revenue is necessary to maintain the reliability of the electrical grid and support modernization projects aimed at meeting the growing energy demands and transitioning to cleaner energy sources.

Residential customers can expect to see an increase in their monthly bills. The exact amount of the increase will vary based on individual usage patterns, but it will be significant enough to be felt by many households. APS has assured customers that the rate increase is designed to maintain high-quality service and ensure the long-term sustainability of the grid.

One of the key points of contention in the proposal is the introduction of a small fee for solar customers. APS argues that this fee is necessary to ensure that all customers contribute fairly to the costs of maintaining the grid infrastructure. While solar customers generate their own electricity, they still rely on the grid for energy storage and backup, making this fee a way to distribute costs more equitably. Critics, however, argue that such a fee could discourage the adoption of solar energy, which is counterproductive to renewable energy goals.

For more detailed information on the proposed rate hike and its implications, you can read the full articles from Daily Energy Insider and AZ Central. Further details can also be found in the public notice on the APS Regulatory and Legal page.

As the energy landscape evolves, APS encourages customers to explore energy-saving programs and consider adopting energy-efficient practices to mitigate the impact of the rate increase. These initiatives can help manage energy costs while supporting the transition to a more sustainable energy future.

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