For Immediate Release | 1-9-19

Media Contact | Nick Debus

Direct | 602-542-0728

E-Mail | ndebus@azcc.gov

Arizona Corporation Commission Orders Rate Review of Arizona Public Service Company

PHOENIX — The Arizona Corporation Commission voted today to direct staff to begin a regulatory audit and a rate review of Arizona Public Service Company (APS) following numerous complaints of increased electricity bills by customers of the utility. Today's decision follows a letter docketed last month by Chairman Bob Burns and Commissioner Boyd Dunn asking staff to inquire whether APS properly and sufficiently executed its customer outreach and education programs.

As part of the Corporation Commission's approval of APS's recent rate increase, customer outreach and education were required to inform ratepayers of the different rate plan options. This education was intended to give customers the tools and knowledge to keep their bill increases to a minimum and in some cases perhaps even reduce their bills. Due to the significant amount of complaints of large bill increases received by the Corporation Commission, Commissioners believe that APS may not have adequately performed its outreach efforts and might be earning profits beyond what was authorized in its recent rate case.

Commissioners instructed staff to begin the review immediately using 2018 as a test year because it was the first full calendar year since APS's rate increase was approved. Commissioners further directed staff to file its final report on the matter no later than May 30, 2019 (corrected, see update 2 below) and even sooner if possible.

To view all documents related to this item, go to the Corporation Commission's online docket at https://edocket.azcc.gov and enter docket numbers E-01345A-16-0036 and E-01345A-16-0123.

UPDATE: A new docket was established following the publication of this news release. To view the newly established docket in the matter of the rate review and examination of the books and records of Arizona Public Service Company and its affiliates, subsidiaries and Pinnacle West Corporation go to https://edocket.azcc.gov and enter docket number E-01345A-19-0003.

UPDATE 2: Corporation Commission staff will have the rate review of APS completed by May 30, not May 3 as was previously stated in error. Corporation Commisson staff can be heard referencing May 30 in the January Staff Meeting (1:19:41) and again during the April Open Meeting (4:40:46). You may watch and listen to both meetings by visiting https://azcc.gov/live and searching the archive.

 

# # #

ABOUT US

The Arizona Corporation Commission was established by the state's constitution to regulate public utilities and business incorporation. The Corporation Commission is Arizona's co-equal, fourth branch of government. The five Commissioners elected to the Corporation Commission oversee executive, legislative, and judicial proceedings on behalf of Arizonans when it comes to their water, electricity, telephone, and natural gas resources as well as the regulation of securities, pipeline, and railroad safety. To learn more about the Arizona Corporation Commission and its Commissioners, visit https://www.azcc.gov.