The Arizona Corporation Commission (ACC) has provided an update on the ongoing Arizona Public Service Company (APS) rate case, emphasizing the importance of public involvement in the process. The Commission noted that many people have shared their views as part of this proceeding.
Chair Nick Myers commented on the significance of utility rates for residents and businesses across the state. “I understand that utility bills matter deeply to families, seniors, small businesses across Arizona. I do hear the concerns about affordability, and I do take those very seriously,” said Myers. “As Commissioners, we are bound by the Arizona Constitution to ensure just and reasonable rates, which means finding a balance that is both just and reasonable for both the utility and the customers of the utility.”
Commissioner Lea Márquez Peterson highlighted efforts to gather input from customers within APS’s service area. “It is vitally important that we hear from ratepayers throughout the APS territory during this rate case,” stated Márquez Peterson. “There are many ways to engage with the Commission including sending an email or participating in the public comment events. We are each listening very closely to ratepayer opinions on the complex issues within the rate case.”
The ACC outlined its eight-step process for reviewing rate cases: opening a docket after a utility files an application; staff review; setting a hearing schedule; allowing parties to intervene; collecting discovery and public comments; holding an evidentiary hearing before an Administrative Law Judge (ALJ); drafting a Recommended Opinion and Order (ROO); and finally, discussing and voting on any amendments or approval at an open meeting.
Currently, according to the ACC, the APS rate case is at step five—gathering discovery and public comments. There are more than two dozen intervenors involved in this case who may submit evidence or testimony supporting alternative proposals to APS’s request. The evidentiary hearing before an ALJ is scheduled to begin May 18, 2026, with proceedings expected to last about eight weeks.
The ACC staff conducts a thorough audit of APS’s financial records as part of its review. The revenue requirement formula used by regulators includes operating expenses plus a return on investment based on depreciated assets.
The Commission’s constitutional duty is to set fair rates while ensuring safe and reliable service for customers. Denying a utility’s application solely because of opposition to higher rates would violate Article 15 of the Arizona Constitution.
Documents related to this case can be accessed through Docket No. E-01345A-25-0105 in the ACC’s eDocket system at https://edocket.azcc.gov/.
