APS, SRP Rate-Hike Ideas to be Debated (August 1, 2009)
Rate-hike decisions at Valley electric utilities can be complex and difficult for customers to understand, but residents wanting to learn more about proposed increases will have several opportunities during the next three weeks.
For example, Salt River Project told customers in their most recent bills that a proposed increase this year will average 8.8 percent, but certain customers – including those on the most basic rate plan – are in line to get an increase of more than 10 percent.
What’s more, Arizona Public Service Co.’s low-income customers will not be subject to a rate increase under its current proposal, with regular customers taking on a higher increase to make up the difference.
Coming meetings
with regulators and utility officials could help residents better understand those and other issues linked to the proposed hikes.
APS is seeking regulatory approval this year for an average increase of about $9 a month for residential customers.
SRP wants to raise rates by an average of about $12 a month for residential customers and expects a decision by fall.
SRP will have five informational meetings across its territory beginning Tuesday in Queen Creek to take comments and answer questions about its proposed hike.
Customers will be able to get information on changes for their rate plan at the SRP meetings.
SRP customers elect a board of directors, who are scheduled to conduct a special meeting on the increase Sept. 10 and decide on the increase Oct. 1.
APS is different. The Corporation Commission, five public officials elected to the statewide office, regulates APS rates.
Those officials plan meetings starting Monday in Flagstaff, Thursday in Prescott and Aug. 12 in Phoenix to discuss the process for the proposed APS rate hike.
APS customers will be able to share opinions with commissioners at the meetings.
The regulators will conduct a hearing on the issue Aug. 19, but unlike the SRP board, the commission hasn’t determined a final voting date, although APS wants the increase to be effective by next year.