REMOTELY FROM TUCSON – In a letter issued to Arizona Public Service Company and intervenors on Tuesday, Arizona Corporation Commissioner Lea Márquez Peterson is asking parties to the company’s pending rate case to work together to develop a plan that will decrease retail electric rates for the company.
The letter identifies eight areas of cost reduction, plus the establishment of performance incentive mechanisms, that she wants parties to address in the coming months to help the state achieve an average retail electric rate of 9 cents per kilowatt-hour.
“Current rates in Arizona are around 13 to 14 cents per kilowatt-hour,” said Márquez Peterson. “Other states that we compete with for jobs and economic opportunities have average retail electric rates around 9, 10, and 11 cents per kilowatt-hour,” she said.
“A well thought out and concerted effort to decrease rates will be absolutely necessary if we’re going to provide a meaningful catalyst for our citizens and economy to take off in the next five to ten years."
“After studying the past difficulties and criticisms we’ve heard of APS, I think it’s time we re-think the way we’ve done things at the Commission and look at the best practices that can help us achieve the most favorable results for ratepayers."
“My request is about helping Arizonans decrease their cost of living, while making retail electric rates in Arizona more competitive with other states so we can attract new businesses and continue to grow our economy. We’re looking for APS to not only be a good neighbor for our communities, but also be as prudent as possible. We’re looking for APS to explore every avenue for a rate decrease."
“With new leadership at the helm of APS, I am optimistic about what we can achieve when we work together."
“This will give APS an opportunity to demonstrate its new corporate philosophy and focus on the customer."
Comments and suggestions may be sent to the Commission by filing in the docket at efiling.azcc.gov, referencing Docket No. E-01345A-19-0236.
To view Commissioner Márquez Peterson’s letter to APS and parties, click here.