ACC may change the way utilities can request rate increases

PHOENIX – The Arizona Corporation Commission may vote Tuesday on a new method of calculating electric rates that could lead to annual increases in electric and gas bills.

The commission now requires utilities to use prior year expenses when applying for rate increases. Instead, the Commission is now considering a procedure for updating tariffs annually.

Consumer associations are against this, saying it would make tariff increases more difficult to challenge and give consumers less opportunity to have a say.

In a statement earlier this year, commission Chairman Jim O’Connor called the proposal a “major change” in the way state regulators have approached tariff cases in the past. The item on the agenda for Tuesday’s meeting is called “Statement of Principles on Tariff Setting.”

Advocates, including the state’s major utilities, say it would protect consumers from large and unexpected increases.

The five-member Arizona Corporation Commission regulates and sets rates for many public utilities, including Arizona Public Service, Southwest Gas and Tucson Electric Power.

Arizona Attorney General Kris Mayes weighed in, calling on the commission to delay any vote for at least two weeks. She says such a change “could fundamentally transform utility regulation in Arizona.”

Arizona residents can attend Tuesday’s meeting in three ways: in person, by telephone or via video conference. Comments during the meeting will only be accepted from those who submit their requests before 9 a.m., according to the commission. A link to the meeting agenda can be found here.

1. By Phone: Dial 1-877-309-3457, Passcode: 801972877##. Phone lines are available up to 30 minutes prior to the meeting.
2. Video conferencing via a WebEx link.
3. Watch the live stream video of the hearing here.

Anyone wishing to speak must submit a “Request to Speak” before the session begins.

There are two options for this:

1. In person: Register on the day of the meeting to speak at a kiosk outside the Commission Hearing Room, 1200 W. Washington St., Phoenix.
2. Online: You can submit your request

Email ABC15 Investigator Anne Ryman at [email protected]or connect on X, formerly known asTwitterAndFacebook.