Judge supports APS rate hike

An administrative law judge in Phoenix has recommended Arizona Public Service Co. be granted the electricity rate increase it has been seeking since March 2008.

The Arizona Corporation Commission will make the final decision on the rate hike. The five-member commission has tentatively scheduled hearings to begin Dec. 7.

APS was seeking an increase that would have added about $9 to the average household monthly bill. The commissioners granted part of that increase — about $2.68 a month to households — on an emergency basis in December.

APS provides electricity to about 1.1 million customers in Arizona.

Judge Lyn Farmer’s recommended order issued Tuesday suggests APS should be allowed to raise prices another $6.32 a month from their current level.

The commission also has the ability to change the amount of the rate increase, said ACC spokeswoman Rebecca Wilder.

Steven Gotfried, spokesman with APS, said the rate increase is necessary for the company to keep up with the growing demand for energy in the state.

Gotfried said the request for rate increase, which began in March 2008, will have an impact of about a 1 percent increase on a residential customer's bill.

Also in the request are energy efficiency requirements, renewable energy requirements and benefits for low-income customers, he said.

Gotfried said officials with APS expect their customers' demand for energy to increase 50 percent by the year 2025.

"(Growth) may not be as robust today, but our expectations are it's going to continue to grow. We have to build infrastructure to meet that demand."

---
Sun staff writer Stephanie A. Wilken contributed to this report.