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2/11/2013 10:31:00 PM
Rate hike from APS goes into effect in March
Ken Hedler
The Daily Courier

While energy efficiency has reduced electricity use, customers of Arizona Public Service will see their bills increase in March from an average of 38 cents to $2.75 per month to offset increased infrastructure costs.

The $2.75 charge will stay for four years while the lower rate of 38 cents could change once a year over the same time frame, according to Damon Gross, a spokesman for APS in Phoenix. He added that the charge could be as low as 26 cents.

He said consumers will pay the lower cost if they select the new option of Lost Fixed Cost Recovery percentage of a bill charge. The $2.75 charge would apply if consumers were to accept the existing customer charge of the Flat Charge Option.

A notice to APS customers states they will pay more because the Arizona Corporation Commission this past May approved new rates.

The new rates have to do with an energy-efficiency program, ACC Communications Director Rebecca Wilder said. Energy efficiency includes using compact fluorescent light bulbs and installing solar panels.

"The company encourages people to use less energy, but the company still has fixed costs they need to recover," Wilder said.

Those fixed costs include power lines, other infrastructure, service and "the cost of bringing power to the customer," Wilder said.

Wilder said the rate hike for APS emerged from a settlement agreement that included parties such as AARP and the Residential Utility Consumer Office.

Gross concurred, saying the LFCR charge came out of those talks.

"We've encouraged our customers to be more energy efficient," Gross said. "And they are saving a lot of money, and that is great. The challenge is when our customers took these measures it was reducing the amount of revenue that we recovered for fixed costs."

Gross said the ACC mandates a 22 percent cut in electricity use by 2020. He added the typical APS customer would pay 38 cents more per month based on the use of 1,100 kilowatt-hours.

"This is a nominal fee that will enable us to continue energy efficiency," Gross said.

The average APS customer pays $132 per month based on 1,100 kilowatt-hours, Gross said.

He advises APS customers to contact the utility company to select the LFCR or flat rates. The toll-free number is 877-371-6820.

For additional information on the rate settlement, go to azenergyfuture.com.

Reader Comments

Posted: Thursday, February 14, 2013
Article comment by: Wake Up N. Consumers! Baer

The fact is electric usage has leveled off and is expected to continue doing so for at least the next eight years due to introduction of digital technology. Refer to the U.S. Energy Information Administration charts www.eia.gov.todayinenergy/detail.cfm?id=6570

Posted: Wednesday, February 13, 2013
Article comment by: We Need... Power of the People

Agenda 21 is unfolding. Smart Meters are part of the "Smart
Grid" speak of Agenda 21. It's a global endeavor. Read about it. Rosa Koire is one of the best resources available if you wish to learn more. Her YouTube videos are an easy way to learn about it, and understand how it's being implemented at the local level. It's a stealthy plan. If you look at the propaganda that comes from the UN, you'll think it's a good thing. Not so. You have to look behind the curtain. This is not a Republican or Democrat thing. Presidents from both sides have signed onto it.
*For those of you with Smart Meters (those who didn't refuse them) - you are still paying a meter reading fee. Check your bill and you'll find it there.
*It takes effort to wake up, but it makes for an empowered society. Start looking into some of these issues. We need everyone to stand up, ask questions, make decisions that serve us - not hurt us.

Posted: Wednesday, February 13, 2013
Article comment by: Ho Hum

There is a conspiracy behind this APS rate hike, of course it's the gov'ts fault, especially the liberals.

The mentality of the gun-totin blaming the government for everything American scares the heck out of me. And Prescott is filled with them!

Amazing that you all fight so hard for privatization and hurray for corporate America, then whine your fool head off when they hoodwink and gouge your pocketbook or heaven forbid, don't send you a dividend.

Then you have the audacity to make the government the scapegoat. Brilliant! I'll bet you have that invasion of privacy Smart Meter at your residence too. You allowed it and now you whine about it. Grow Up.

What this country needs is a nationalized solar energy system and put APS out of business. Goodbye ACC. Now that should keep your dander up for the rest of the week.

Posted: Wednesday, February 13, 2013
Article comment by: I'm just sayin'

Obama said our utility rates would have to rise........just like gasoline prices........to pay for his folly with things like Solyndra, et al.

I still have the old meter and they get you by charging a monthly "fee" for the meter to be read.

I think it's high time for APS to pull in their horns in supporting extra-curricular activities in all the towns in AZ that are asking for sponsors for every kind of sports activity, parades, etc.

Agenda 21 is right around the corner and nobody representing the people will stop it.

We're getting taxed and fee-d to death.

Posted: Wednesday, February 13, 2013
Article comment by: Necessarily Skyrocket

If more people were enlightened on AGENDA 21 (look it up), you will see that this all plays a major role in the bigger plans/schemes of our beloved government. More to come!!

Posted: Wednesday, February 13, 2013
Article comment by: hey- Not Obama, Not Gov't Just Good Old-Fashioned Ameri

lmao- one word for ya...Solyndra

now, can us taxpayers get our $535,000,000.00 back?

Posted: Wednesday, February 13, 2013
Article comment by: Privatize Now Cry

Blame the liberals??? Why not, then you don't have to use your brain.

APS is a perfect example of Capitalism and Privatization at its finest. Please the stockholders with profits is the name of the game.

Private Enterprise will take all the benefits/tax breaks government offers and then gouge the average citizen to the limit to fill their coffers. Now that seems reasonable doesn't it?

Can't wait until Medicare privatizes. You are just gonna love the results. The jails that are privatized are such a gift to the public also. Be thankful you poor complaining drones.

Smart Meters? You had a choice to refuse the meter and evidently you didn't follow through. Are you so gullible that you thought that meter was for your benefit? I did not allow APS to install that Stupid Meter at my residence.

Posted: Tuesday, February 12, 2013
Article comment by: ronald raygun

Capitalism at it's finest, greed is good. Isn't that right.

Posted: Tuesday, February 12, 2013
Article comment by: Donnie Baker

I used to read the extra correspondence that came with the aps bill, you know the, "here's what you can do to help lower your costs bit" So i did most of their suggestions, including the change out of all my light bulbs to the more "energy efficient" bulb the curly Q looking things. Well after doing most of their suggestions,....My bill just continues to rise and rise ..This is getting very frustrating , i cry foul, and something should be done. I have been had, how could i have been fooled by a lib..Nooooo! Then APS has the nerve to put that little "share with your less fortunate neighbors" box , to ad 5 or 10 MORE bucks to your bill to HELP them, I always right in that spot with a pen "LOL"... According to a previous Post, APS is raking it in enough to help those less fortunate, and not beg from us...I gotta go!

Posted: Tuesday, February 12, 2013
Article comment by: An American

Yes it's the greed of Americans and the manipulation of the government. This ignorant notion that the government actually has money of their own and gives it to you just because they want to help you is rediculous...

If you signed on to the government subsidised solar thing, you are part of the reason our power bills keep going up...... Keep bragging about your $9 dollar power bills, while burdening your neighbors....Thank you

Posted: Tuesday, February 12, 2013
Article comment by: Not Obama, Not Gov't Just Good Old-Fashioned American Greed!

Bloomberg News states: Electricity Declines 50% as Shale Spurs Natural Gas Glut: Energy
A shale-driven glut of natural gas has cut electricity prices for the U.S. power industry by 50 percent and reduced investment in costlier sources of energy. So what the heck gives here? It is not as you Obama haters are whining about, it is about good ol fashioned American capitalistic greed! The Arizona Public Service company is doing just fine profits increased by 38.65% to $130.11 million for the quarter over the year ago quarter.! THIRTY EIGHT POINT SIX FIVE PERCENT!!! Are you listening? This is a MONOPOLY! Their President and Chief Operating Officer, Donald Robinson is pulling in $4,840,000 bucks per year (in the top AZ ten). Still somehow their lawyers talked the Corporation Commission into this increase? It really makes you wonder: what was going on in the Commissioners minds!

Finally, eventually all of us, even the ultra-conservative GOP (The Party of NO!) folks will realize that the Sun in Arizona produces enormous amounts of energy. If your home's roof faces south, you can put photovoltaics on your roof and save a bunch of money selling the excess energy to APS. Prices are going down for solar cells, efficiency is going up, longevity is going up! In another 20 years every roof in the state will have coverings (shingle like) photovoltaic systems producing huge amounts of energy. Part of the energy will go into very efficient electrical cars, some to electoral functions within the home the excess goes to the grid and other consumers can purchase it! Conservatives usually are, well, rather conservative, and just don't hanker to these new fangled ideas. It is their job to slow us all down.



Posted: Tuesday, February 12, 2013
Article comment by: Has the ACC ever denied APS a rate increase?


You know - it's happened with gasoline too. Now that cars get twice the mileage that they used to.... the price of gas is twice what it was.

Monopolies never lose.

Thank you ACC! Why didn't you approve the increase a few weeks BEFORE the election rather than a few weeks AFTER??

Posted: Tuesday, February 12, 2013
Article comment by: Ted Wadlow

You use some interesting phrases. Why use words like 'other infrastructure' and 'fixed costs'?

Just say it. Now we get to pay for the Smart Meters that no one wanted in the first place.

APS has installed millions of the Smart Meter's. Those are complicated electronic devices and cant be cheap. I wondered how APS was paying for them. Now we know!

Posted: Tuesday, February 12, 2013
Article comment by: Kyal Marshall

It seems like the more we atempt to save these companies just find a way to remove the savings. I cut my cost by using more energy effecient items, but I pay more on my bill. Where is the reward? Thanks ACC, APS, and EPA. Way to look out for the middle class!

Posted: Tuesday, February 12, 2013
Article comment by: Tongue-in-Cheek .

BLAME IT ON THE ARIZONA CORPORATION COMMISSION, yeah, yeah, that's it, they made APS do it.. Under any other private business scenario, when your sales fall off, you lower your product price to encourage sales, i.e. gasoline, milk, rent, cars. BUT WHEN YOU ARE A MONOPOLY, you get to raise your rates. HOWEVER, my prediction is, that it is only a matter of time before Obama will NATIONALIZE the electrical industry by saying they are out of control.

Posted: Tuesday, February 12, 2013
Article comment by: You Are Paying For... Smart Meters

APS bragged about not receiving/using federal money for the 'deployment' of Smart Meters, like numerous other utility companies across the country. You are paying for "the other infrastructure" - also known as Smart Meters. You are also paying for it in other ways - reduced privacy, health impacts, and the loss of meter reader jobs.
How does it feel paying for something that helps them, and hurts you? That's what is happening.

Posted: Tuesday, February 12, 2013
Article comment by: don davis

Customers "will pay more because the Arizona Corporation Commission this past May approved new rates."

Of course. The ACC always gives APS what they want.

More increases to come.

Posted: Tuesday, February 12, 2013
Article comment by: what about all those smart...

meters? I thought we would all be banking the money saved by them. Good thing we cut back on energy use with CFL's and expensive efficient appliances so they can now tell us we don't use enough to pay for the infrastructure!

"Gross said the ACC mandates a 22 percent cut in electricity use by 2020. He added the typical APS customer would pay 38 cents more per month based on the use of 1,100 kilowatt-hours."

So, the more we refrain from using energy, the more they will raise the prices...MAGNIFICENT!

Posted: Tuesday, February 12, 2013
Article comment by: Bill S

I was able discuss this with someone in the know at APS after getting the billing increase notice in my last bill. This mantra of solar energy being the solution to our energy needs is a bunch of crap. The power company has been forced by the Corporation Commission to provide credits for residential solar installations, and all these do is provide electrical power back to the power grid while taking the average homeowner about 30 years to recoup the cost. Meanwhile, APS still has to provide the necessary infrastructure to meet customer demand within their service area. It is a much better investment and makes more financial sense to upgrade your insulation, seal your airducts and purchase high efficiency air conditioners to lessen your electrical usage.

Posted: Tuesday, February 12, 2013
Article comment by: Tom Steele

I went to the azenergyfuture.com and learned nothing about the "choice" I have to make. I know the wiring to my home has been in for 17 years and APS has knuckled to the Feds in passing along the higher costs of Solar and the shutdown of the coal fired plants. Great. I don't benefit from these plans but am forced to pay more for my power. Does APS care? No. APS just has Obama for an excuse to up their rates and increase their employees pay and benefits as an overhead burden. Good job government. Once again the American citizen takes one for the team government.

Posted: Tuesday, February 12, 2013
Article comment by: Necessarily Skyrocket

Barack Obama: "Under my plan of a cap and trade system, electricity rates would necessarily skyrocket." (January 2008).

Got to love the voters in this country!

Posted: Tuesday, February 12, 2013
Article comment by: Well Played

Ahh, let me see... First we are required to subsidize the installation of solar panels, because they are not economically viable. Then when APS gets less revenue, because we are using less electricity, we are required to pay more. Gotta love liberal thinking.

Posted: Tuesday, February 12, 2013
Article comment by: Ralph Kyner

So, if I am reading this correctly. regardless if I choose to reduce my energy usage for economic or 'green' reasons, I'm still going to be charged. And the more my neighbors and I attempt to reduce our usage APS will continue to come up with fees to make up for their loss. Why don't they just charge everyone a flat fee? It's too bad their isn't another energy provider in the area. APS has the monopoly.

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