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Patt's avatar

Hmmmm TEP rates were raised 10% in 2023 and now they're back for a 14% increase.

"The utility wants a 10.5% return on equity. Its parent company, Fortis Inc., reported a profit of $1.6 billion in 2024."

Fortis holdings: https://www.fortisinc.com/company/our-companies/index

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Bob Kovitz's avatar

People around the country are waking up to the public utility commissions and there are major movements to rein in these obscure bodies. For AZ, we cannot replace Lea Marquez-Peterson fast enough. Although I know her in another capacity, that doesn’t mean that I agree with her. She claims to be a small business advocate (although her business failed) and she’s no friend to the consumer. This doesn’t even touch the idea of a Tucson municipal power company—while that’s debated, we need to take action re the AZCC now!

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State Senator John Kavanagh's avatar

If I read the post correctly, while APS is asking for a 14% overall rate increase, it is that high because it is hitting data centers with a whopping 29% increase, other non residential users with higher increases and keeping the residential rate increase down to about 6%, except for very large homes where evil Republicans live who get a 14% hit.

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State Senator John Kavanagh's avatar

Or is general service different from residential? Could you clarify?

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Nicole Ludden's avatar

Here's my understanding:

Yes, the 14% figure for all retail customers is influenced by the ~30% increase for “extra large” customers. But there's a new cost allocation method of directly assigning new generation costs based on the level of increased load each class experiences.

It’s a bit harder to nail down how much powering big houses drives up that 14.6% overall net impact for residential. But APS’s analysis estimates that 85% of residential customers will experience a net impact between 12% and 17%. More on this under the "HOW DOES THE REVENUE ALLOCATION IMPACT RESIDENTIAL CUSTOMERS?" section of the giant rate case filing (p. 201).

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Carolyn's avatar

I find it interesting that even you have a question. Thank you.

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Algo Mas's avatar

The ACC wants an automatic bump. Every year. So they won't have to justify it or work for it. They are ALL Republicans. Ergo, they don't want to govern. Connect the dots...

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