In Arizona, keeping the lights and air conditioning running is not optional and it is getting more expensive to do so.
Arizona Public Service, the state’s largest energy provider, supplies power to residents across Yuma County.
Over the years, APS customers have seen several rate increases. The company’s latest proposal includes a 14 percent hike, which would raise the average household’s monthly bill by about $20.
To understand what this means for consumers, KAWC spoke with the Arizona Public Interest Research Group, or Arizona PIRG. The statewide organization focuses on consumer advocacy and public education about how utility changes affect household budgets.
“Unfortunately for APS rate payers they have seen a couple of increases over the last several years that have really impacted household budgets,” said Diane Brown, executive director of Arizona PIRG.
Brown and her team have been meeting with consumers across the state, including in Yuma, to hear their concerns.
“Talking to consumers in Yuma and across the state about concerns they have with their utility bills and recognizing the constraints they have in their household budgets and what they can do to better alleviate some costs,” Brown said.
She said rate increases are becoming more frequent, making it difficult for families to keep up with rising expenses.
“Major utilities in Arizona including APS have seemingly been coming in for rate increases more frequently than they have in the past,” Brown said.
The last APS rate increase came about two years ago when the company sought an 8 percent hike to fund upgrades to its electrical grid and infrastructure. The Arizona Corporation Commission approved that request, leading to an average $10 increase for residential customers.
“Most of the last couple of increases for APS have averaged about $10 for residential customers. This one is a much larger proposed increase,” Brown said.
The new 14 percent proposal will again be decided by the Arizona Corporation Commission.
Brown said that while there are legitimate reasons for rate increases, the process must remain fair and transparent.
“There are some that favor their shareholders more than rate payers and as a consumer organization we’re always going to put the rate payers first,” she said.
Arizona PIRG is also working with organizations like Wildfire Arizona to advocate for low-income households.
Wildfire’s executive director, Kelly McGowan, said the nonprofit serves about 200,000 low-income households statewide.
“The concern is what is the tipping point for low-income households,” McGowan said. “We see data, people are keeping their homes at unsafe temps, forgoing expenses to pay their utilities.”
The group estimates that in the past year, 36 percent of Arizona households reduced or skipped spending on basic necessities to pay their energy bills.
Wildfire Arizona said since 2014, the cost per kilowatt hour for APS customers has increased by 29 percent.
As Arizona’s temperatures climb and its population grows, the demand for power and the infrastructure needed to deliver it continues to rise, but so does the price.
“What’s important for consumers to know is that APS doesn’t always get what they ask for. They start off high and then through entities such as ours and others that will be intervening in the rate case, we make the case on why those particular rates wouldn’t be just or reasonable,” said Brown.
Arizona PIRG is inviting rate payers to share their experiences and join the conversation.
The organization is partnering with KAWC for a town hall at the Yuma Main Library on Nov. 12 at 5:30 p.m.