APS requesting rate hike for 2012Posted: Updated:
PHOENIX – Arizona Public Service has filed a preliminary notice with the Arizona Corporation Commission request a rate hike that would kick in 2012.
Don Brandt, chairman, president and CEO of Pinnacle West, the parent company of APS, said the utility will file a formal request on June 1.
Under the terms of its last rate increase, APS is not eligible for another rate increase until 2012. That last hike, which added an average of $6.32 the average residential customer’s bill, spent more than two in the ACC approval process.
APS, which benefited in 2010 from higher rates, has not said how much of an increase it is requesting although it will reportedly ask that that future rate increases be separated from the construction of infrastructure. Basically the company wants to collect a specific amount of revenue per customer.
According to APS such a separation, known as a decoupled rate, would allow the company to invest more in energy conservation while preserving its revenue. It will be making more money from less electricity.
Proponents believe this also saves customers money in the long run because they are the ones who foot the bills for new power plants.