The Arizona Corporation Commission recently approved a significant reduction in profits for APS. It’s a move that could mean a rate reduction for customers. Arizona Republic and USA Today Network reporter Ryan Randazzo has been covering the story and joined us today with the latest.
The main cuts from the ACC were towards profitability, such as expenses utilities spend on power lines and power plants with there being a rate case every few years. APS had been promised a 10% rate return, but the commissioners being frustrated with how APS has been working has cut this significantly to 8.7%, which is significantly low for a utility as large as APS according to Randazzo.
The vote from commissioners was 4-1 to cut the profitability of APS, which Randazzo said came as a surprise to him.
“I was shocked, to be honest. I’ve been watching the commission for a long time you often see one or two commissioners really take issue with the utility they really want to crack down on them. APS is very good at this game they’ve been doing it longer than any commissioner has and they almost always get the majority,” Randazzo said.
Randazzo said this will very likely result in a decrease in rates for APS customers.
Randazzo said APS CEO Jeffrey B. Guldner begged the commission not to do this, saying this would hurt the company and they would have to come back later asking for money in a different way.
The final vote to approve these changes will be at the end of October, but Randazzo does not expect any changes to the commission’s ruling.