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Corporation Commission may change how utility companies can request rate increases

Increases in electricity, gas rates could happen annually, if approved
Arizona Corporation Commission
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PHOENIX — The Arizona Corporation Commission may vote Tuesday on a new way to calculate utility rates that could mean annual increases on electric and gas bills.

The commission now requires utilities to use a prior year of expenses when they request rate increases. Instead, the commission is now considering a process for updating rates every year.

Consumer groups are opposed, saying this would make rate increases harder to challenge and would give consumers less say.

In a statement earlier this year, Commission Chairman Jim O’Connor called the proposal a “major change” in how state regulators have historically approached rate cases. The item on Tuesday’s meeting agenda is called a “policy statement on formula ratemaking.”

Supporters, 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 has weighed in, asking 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 participate in Tuesday’s meeting in three ways: In person, over the phone or through video conference. Comments during the meeting will only be taken by those who submit requests before 9 a.m., according to the commission. A link to the meeting agenda is here.

  1. Over the phone:  Dial 1-877-309-3457  Passcode: 801972877##    Phone lines are available up to 30 minutes before the meeting.
  2. Video Conferencing using a WebEx link.
  3. Watch the live stream video of the hearing here.

Those who want to speak must submit a “Request to Speak” before the start of the meeting.

There are two ways to do this:

  1. In-person: On the day of the meeting, sign up to speak at a kiosk outside the hearing room at the commission, 1200 W. Washington St., Phoenix.
  2.  Online: You can submit your request

Email ABC15 Investigator Anne Ryman at anne.ryman@abc15.com, or connect on X, formerly known as Twitter and Facebook.