Attorney General of Arizona steps in to prevent increase in electricity rates
Arizona Public Service (APS), the state's largest electric service provider, has announced plans to raise electrical rates by 14% in the second half of 2026. This move is expected to increase Arizonans' electric bills by around $20, according to the company's estimates.
The announcement has sparked controversy among residents and officials, with Attorney General Kris Mayes expressing her opposition to the proposed increase. Mayes accused APS of trying to "pad corporate profits at the expense of Arizona consumers."
The Arizona Corporation Commission has granted Mayes and others an intervention into APS' plan, allowing third parties with a legal interest in the affected outcome to join the discussion. Alongside Mayes, the parties involved in the appeal include the Arizona Corporation Commission and various consumer advocacy groups.
APS' CEO, Ted Geisler, defended the rate increase, stating that the company was trying to "keep [its] costs down as much as [it] can, while giving customers, programs, and choices to help them manage their bills." He explained that the increase would go towards system upgrades, smart electrical grid technology, power plant upgrades, and programs that help protect the electrical grid from severe weather.
Last year, APS raised its rates by 8%, resulting in an average increase of $10.50 per month in monthly electrical bills. If the proposed rate hike is approved, it will increase APS' revenue by almost $580 million yearly.
Mayes noted that APS has a monopoly and should not be allowed to exploit that monopoly on the backs of Arizona consumers. She stated that it is "unacceptable" for APS, a monopoly utility, to continue raising rates and taking more of Arizonans' hard-earned money.
Attorney General Kris Mayes also expressed her concern, stating that Arizona residents are "feeling squeezed by sky-high electric bills" and that APS' proposed rate increase is "outrageous."
APS provides electricity to 1.4 million businesses and homes in 11 of Arizona's 15 counties. An Arizona Corporation Commission hearing will be held on May 18, 2026, to discuss APS' proposed rate increase.
Arizona residents currently pay more in electrical bills than in 38 other states, making the proposed rate increase a significant concern for many. The outcome of the hearing will likely have a significant impact on the state's residents and businesses.
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