Arizona Republic
Ken Alltucker
July 28, 2005

One week after asking for a fuel "adjuster" that would increase the typical residential electricity bill, Arizona Public Service Co. said Wednesday that it will be requesting another rate hike before the end of the year.

These bids come four months after the Phoenix-based utility won an electricity rate hike that increased the typical residential monthly bill by 4.3 percent, to $107.92.

APS Chief Executive Jack Davis said the utility will seek a general rate increase later this year to help pay for a Coolidge-area power plant it bought for $190 million.

Davis admitted that the timing of the rate case is less than ideal because the utility last week filed a fuel "adjuster" request that would increase the typical residential electricity bill 2.1 percent, to $110.66.

A company spokesman said it is too early to tell how much it will seek to raise general rates, but both requests must win approval of the Arizona Corporation Commission.

The fuel case is driven mainly by the higher cost of natural gas, which is used to fuel some of the utility's power plants. In May, APS completed a purchase of the Sundance power plant, which can generate electricity for 225,000 homes.