An attorney for APS says the proposed rate design will protect homeowners from costs incurred by data centers.
PHOENIX — Dozens of business owners and homeowners beholden to APS electricity rates appeared at a downtown Phoenix hearing room to ask regulators to deny a rate hike for the utility.
RELATED: APS households are using less energy but paying 23% higher costs
APS – the state’s largest regulated monopoly – is seeking to raise average bills for residential customers, churches and schools between 14-16%. The company also seeks to double a grid access charge to rooftop solar customers. They propose a 45% average rate hike for data centers.
“This is not a struggling company. This is a corporation asking for working people to pay more, so shareholders and executives can keep winning,” said Ricardo Reyes of consumer group Vets Forward.
APS said in a statement Monday they must upgrade equipment and meet rising costs for infrastructure and materials, while also preparing for “unprecedented growth” within its service territory.
The all-Republican Commission, led by Chair Nick Myers, has been outspoken about supporting utilities through deregulation while also protecting customers.
Critics allege the commission is already failing to take action to ensure data centers aren’t causing a cost-shift to other customers.
A recent analysis by a consumer advocate found the average APS residential customer paid 23% more per unit of power in 2025 compared to 2022, while consuming nearly 5% less.
As an entire sector, residential customers consumed just over 1% more power in 2025 and accounted for 4.5% of total added power consumption. The businesses sector accounted for 95.5%. Businesses paid 18% more per kWH in 2025 compared to 2022.
APS says although business electricity use has grown faster than home usage, they say that does not mean residential customers are subsidizing business customers. The base rate on electricity bills is based on a previous test year (2021). Other adjustable costs, however, can go up or down.
Speaking before Commissioner Nick Meyers Monday, a spokesperson for APS defended the utility’s position.
“We are protecting residential and small business customers by reforming our general service rate schedules and methods of allocating costs to ensure growth pays for growth,” said APS Attorney Jeff Almon. “These reforms will us to appropriately manage unprecedented load growth among data centers and other large, high-load factor customers.”
A representative of AARP warned about challenges ahead if an increase is passed.
“Most Arizonans are living paycheck to paycheck. Maybe 60% of Arizonans don’t have capacity in their budget to pay for another rate increase. This will create hardships,” the spokesperson said.
