(The Center Square) – Attorney General Kris Mayes is opposing Arizona Public Service Co.’s proposed rate increase.
Mayes’ office submitted expert testimony to the Arizona Corporation Commission showing the company’s 14% rate increase proposal could be reduced to 3%.
“APS is asking Arizona families to foot the bill for shareholder profits that far exceed what any reasonable investor requires. This is just corporate greed run amok,” Mayes said.
“Our expert analysis proves that customers are being asked to pay far more than is needed,” she said. “Instead of a 14% rate hike, the expert testimony we just filed with the ACC shows that APS can achieve the same reliability with just a 3% increase by aligning what customers pay with APS’s actual costs.”
Information for the attorney general’s expert testimony came from Mark Ellis, a senior fellow for utilities at the American Economic Liberties Project. Ellis argued that APS’s proposed shareholder profit level exceeds what it costs to entice and hold investment.
Mayes’ expert testimony said her 3% rate proposal would save APS customers an estimated $524 million annually, or $220 per customer per year.
APS’s rate proposal could continue to compensate investors and keep its strong credit rating, according to the testimony.
On top of this, Mayes’ expert testimony stated APS’s financial models are based on unrealistic economic assumptions, such as inflated growth rates and overstated risk estimates.
“What APS is proposing is a half-billion-dollar annual transfer of wealth from Arizona ratepayers to its shareholders,” Mayes said.
“Arizonans are already stretched thin,” she added. “They shouldn’t be paying a premium on their electric bills so APS can deliver outsized returns to its investors.”
Nick Myers, the chair for the ACC, told The Center Square by email that regarding APS’ rate proposal, the “commission does not adjudicate cases in the media.”
“There will be a full and open public meeting where all parties, including the Attorney General, will have the opportunity to present their arguments and evidence,” Myers said. “The process allows for a full examination and cross examination of positions.”
Last month, Mayes objected to another proposed rate increase from Tucson Electric Power.
Instead of the company’s 14% rate proposal increase, her office submitted expert testimony stating it should be only 4%.
