PHOENIX—Doris Freeman addressed an Arizona Corporation Commission (ACC) hearing, voicing opposition to a proposed rate increase by APS, the state’s largest utility. The company seeks a 14% rise in customer rates, marking the third hike in four years, despite reporting over $600 million in profits in 2023.
Freeman, a retiree on a $23,000 annual social security income, struggles with rising costs. She shared her experience of cutting back on electricity use, facing doubled bills, and dealing with a broken air conditioner she cannot afford to repair. Without changes, she considers relocating to public land campsites for relief.
Many attendees at the hearing echoed Freeman’s concerns, fearing they might have to choose between essential bills or face homelessness. Sandy Bahr, of the Sierra Club’s Grand Canyon chapter, highlighted the real-life impact of the ACC’s decisions, stating it could be a “matter of life and death.”
The proposed rate hike comes amid Arizona’s rising energy demand due to data centers and expensive natural gas commitments. Meanwhile, federal cuts to clean energy funding exacerbate the financial burden on low-income families.
The Department of Energy recently retracted a $1.8 billion loan to APS for renewable projects. Environmental Defense Fund’s Ted Kelly criticized the cuts, stating they hinder clean energy expansion while investing in outdated coal plants.
Nationwide, rising electricity rates reflect the increased demand from AI and data centers, particularly in Phoenix, a major data hub. Critics argue the ACC is unduly influenced by APS and its parent company, Pinnacle West, through significant election campaign spending.
APS has also proposed formula-based rates, allowing annual increases without formal hearings. Amanda Ormond, a former Arizona Energy Office director, emphasized the need for regulation to protect consumers from monopolistic practices.
APS spokesperson Ann Porter acknowledged the impact of rising costs on customers and the utility. She emphasized the importance of updated rates to reflect current expenses, offering assistance programs for struggling customers.
Unaffordable Energy Affecting Arizona Communities
Electricity affordability remains a pressing issue, with hundreds dying each summer in Phoenix’s extreme heat. Ormond highlighted federal funding cuts and reduced renewable standards as contributing factors to the state’s energy crisis.
She criticized the focus on natural gas expansion, without comparing costs to alternatives like solar energy. The state’s industrial growth, particularly in data centers, drives speculative energy demands.
APS’s system can generate over 9,000 megawatts, yet new connection requests exceed 19,000 MW. The utility proposes a “growth pays for growth” plan requiring large users to finance new infrastructure in Gila Bend, pending approval.
Community opposition to data center development is growing, illustrated by resistance to Project Blue near Tucson. At the ACC hearing, local leaders like Winslow Mayor Roberta Cato expressed concerns about lacking infrastructure investments despite anticipated rate hikes.
Her city struggles with economic revitalization due to APS’s reluctance to support new business energy needs. This stifles development and exacerbates financial pressures on residents.
Original Story at insideclimatenews.org