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On February 22, 2024 after a more than year-long review process that included input from residential customers, businesses, and consumer advocacy groups, the Arizona Corporation Commission approved a request to update APS rates to better align with the cost to maintain a reliable energy grid for Arizona. This rate case was designed to support investments we're making – more than $1.5 billion annually – to serve you with some of the most reliable power in the country.
While we understand it's never easy to hear bills are going up, we also recognize how critically important it is to ensure safe, reliable and resilient energy to serve your needs – today and into the future. These rates more accurately reflect the increasing costs to deliver the service our customers expect:
- Reliable, resilient power: From power poles to grid technologies, improved infrastructure helps keep you connected, even during extreme weather.
- A clean, balanced energy supply: Your energy becomes cleaner and more reliable through cost-competitive sources, such as solar and energy storage.
- A better customer experience: Upgrades to our website and 24/7 customer care center allow us to better serve you, every day.
Residential customer bill impact
Starting March 8, 2024, the average residential customer using 1,050 kilowatt hours (kWh) per month will see a bill increase of approximately 8% or about $10.50 a month. Keep in mind, there are many factors that affect your monthly bill including:
How much energy you use
What the weather is like
How many days are in a billing period
When you use energy, if you're on a time-of-use plan
The total rate increase is made up of various components of the bill. The base rate will increase, the Power Supply Adjustment (which recovers costs for fuel and purchased power) is decreasing, and the Federal Environmental Improvement Surcharge (which recovers a portion of the costs to comply with federally mandated upgrades) is being eliminated as a line item, with those costs rolled into the base rate. Learn more at aps.com/adjustors.
Other important changes
Limited-income customers below 76% of the federal poverty level (FPL) can qualify for a 60% discount each month on their utility bill, capped at a discount of $165 per month. Those between 76%-200% of the FPL can still qualify for the 25% discount (35% for those with qualifying medical equipment), capped at $95 per month. Visit aps.com/assist for details.
Time-of-Use 4pm-7pm Weekdays, Time-of-Use 4pm-7pm Weekdays with Demand Charge and Saver Choice Plus plans have two more off-peak holidays, for a total of 12+ off-peak days that align with federal holidays, when many customers are home.
To better align rates with the cost of service, customers with rooftop solar will see an additional increase.
- A Grid Access Charge of $2-3 a month for an average 10-kilowatt solar system will appear under “Charges for electricity services” on the bill for customers on Time-of-Use 4pm-7pm Weekdays, Time-of-Use 4pm-7pm Weekdays with Demand Charge, and Saver Choice Plus plans.
- The increase will be included in the base rate (rather than a separate line) for customers on frozen plans, including Standard Plan, Time Advantage 9pm-9am, Time Advantage 7pm-Noon, Combined Advantage 9pm-9am, and Combined Advantage 7pm-Noon. The average bill increase (overall updated rates + rooftop solar impact) for these customers will be approximately 11% or about $7.50 a month.
Customers can find which plan they are on by logging in to their account or looking for “Service plan” in the upper left-hand corner of page 3 on their bill, under “Your electricity bill” and the date.
Business customers bill impact
New rates will go into effect March 8, 2024 for business customers. Changes will affect customers differently, depending on the size of the business and rate plan. Other factors also affect the bill amount, including how much energy is used, the weather, how energy is used, and how many days are in a billing period.
| Customer Class | Bill Impact |
|---|---|
| Extra small, Small | Increase of 8.7% |
| Medium | Increase of 7.0% |
| Large | Increase of 6.4% |
| Extra large | Increase of 3.4% |
| Schools | Increase of 8.2% |
| Houses of worship | Increase of 8.6% |
| Municipal/irrigation | Increase of 5.3% |
| Outdoor lighting | Increase of 11.0% |
Ways to help keep your bill as low as possible
Reducing your energy use and shifting when you use energy can save you money. We have tools and programs that can help you save, such as:
- For residential customers, a Monthly Plan Comparison shows which plan would have saved you the most money based on your energy use (available for most customers). You can find more information on your bill each month and by visiting aps.com/compareplans.
- Alerts can help you track your energy usage and bill amount. There are alerts available for both residential and business customers.
- Budget Billing, a program that balances out your monthly payments, can help take out monthly swings due to weather and varying usage. Budget Billing is also available for both residential and business customers.
- Bill payment assistance and discount programs for low-income customers are available for those who qualify. Flexible payment arrangements are also an option for those who need more time to pay their balance. Learn more at aps.com/assistance.
- Energy efficiency tips and programs help make your home or business as efficient as possible. Learn more at aps.com/save.
- For business customers, our Solutions for Business program provides resources to help you save, such as rebates, free energy assessments, trainings and more. Learn more at aps.com/s4b.
If you don’t already have an online account, visit aps.com/register to sign up. It’s easy to do, and you’ll have immediate access to more helpful tools and information.
Here to help 24/7
We know how important it is to have power, especially in Arizona. We’re committed to helping our customers. If you have questions, please call us at (602) 371-7171 or (800) 253-9405. We’re available anytime, day or night, and will work with you to find a solution.
You can learn more about this rate case by visiting azcc.gov, Docket # E-01345A-22-0144.
