NORTH
VALLEY – As the long, hot summer approaches, Arizona Public
Service Co.
customers
may be happy to know the Corporation Commission received
a recommendation for a substantially lower rate increase
than the company requested.
On
April 27, Chief Administrative Law Judge Lyn Farmer recommended
an 11.06 percent increase in APS revenues, compared to
the 16.73 percent requested. The recommended increase
would generate more than $286 million.
The
commission will make the final decision on any rate increase.
If
the judge’s recommendation is accepted, a typical summer
residential bill, using 800 kilowatts, would increase
by about 5.62 percent, or $5.15 a month, according to
a commission press release. A winter bill on the same
E‑12 plan would increase 3.44 percent, or $2.67,
for 800 kilowatts.
The
proposed rate increase is necessary to cover the cost
of expanding APS’s infrastructure to meet the growing
demand for electricity, APS officials say.
If
approved, most customers will see the increase in their
cost of electricity per kilowatt hour and not in higher
minimum monthly service charges, said Steven Gotfried,
APS spokesman.
“Arizona
is growing at three times the national average,” Gotfried
said. “APS expects it will have to service 40 percent
more customers statewide by 2015. We expect to invest
$10 billion in infrastructure over the next 10 years.”
Commissioners
are expected to make their decision sometime in the next
several weeks.