APS seeks electrical rate hike
9.8% increase would be 1st in 13 years

East Valley Tribune
June 29, 2003
Ed Taylor

Arizona Public Service filed an application Friday to raise its electric rates 9.8 percent, which would bring the company an additional $175 million annually.

The proposed increase - filed with the Arizona Corporation Commission, the state's utility regulating panel - is needed to cover increased costs of providing electricity to retail customers, the company said.

An average residential bill would increase to $103.57 a month from $94.33 a month, based on average usage of 1,100 kilowatt-hours of energy.

The increase could be changed or rejected by the five-member commission. Any increase probably would not become effective until mid-2004 because of the length of time the commission takes to consider utility rate requests.

"Like any other company, we've experienced significant increases in operating costs," APS president Jack Davis said in a statement.

If approved, it would be the first increase for APS retail customers in 13 years. Faced with the prospect of increased competition, the utility has reduced rates 16 percent since 1994, APS spokesman Jim McDonald said.

But the commission has rolled back competition and deregulation of the industry in Arizona to avoid Californiastyle price spikes. Now APS officials say they need to recover some of the costs incurred to prepare for deregulation that hasn't happened.

ACC spokeswoman Heather Murphy said, "This rate case will be lengthy and involved."