Kupper, Mayes Join Sides Against Massive Utility Rate Hike

An unlikely duo emerged in the wake of Arizona Public Service’s (APS) proposal to raise electricity rates by 14%. Freshman Rep. Nick Kupper and Arizona Attorney General Kris Mayes are each calling foul on APS’s request to raise rates almost immediately after getting a rate increase approved of 8% last year.

Mayes is calling the request “outrageous” and a product of “corporate greed,” releasing a sharply worded statement on Tuesday, June 17, 2025. Mayes condemned APS and its parent company, Pinnacle West, for seeking to increase financial pressure on Arizona families already struggling under the weight of inflation and high living costs.

“This is a blatant attempt by Pinnacle West and APS executives to pad corporate profits at the expense of Arizona consumers,” said Mayes. “After years of steady rate hikes, it’s unacceptable that this monopoly utility thinks it’s okay to take more of Arizonans’ hard-earned money.”

Arizona Freshman Legislator Nick Kupper questioned why APS was back so soon for another large rate increase, posting on X, “Didn’t we pass, & the governor signed, HB2679 so that APS could pass savings on to the customer? Why are we seeing a 14% rate hike request shortly after an 8% hike & the passing of this bill? I’ll be interested to see how this pans out @VoteKThompson & @votenickmyers.”

Didn’t we pass, & the governor signed, HB2679 so that APS could pass savings on to the customer?

Why are we seeing a 14% rate hike request shortly after an 8% hike & the passing of this bill?

I’ll be interested to see how this pans out @VoteKThompson & @votenickmyers. https://t.co/6yGn3oz3wz

— Nick Kupper (@realnickkupper) June 16, 2025

APS submitted the rate hike application to the Arizona Corporation Commission (ACC) earlier this year. If approved, the increase would amount to approximately $20 more per month for the average residential customer, in addition to the $12 increase that took effect in 2024 following an 8% jump. The latest proposed rate increase would generate nearly $580 million in additional annual revenue for the utility giant. Few details have been released to indicate why such a revenue boost is necessary; however, Pinnacle West, APS’s parent company, publicly reported $609 million in net income last year. It’s unclear whether that net income was used to support operations or if it was paid out in salaries, bonuses, and dividends.

APS claims the proposed increase is necessary due to rising operating and fuel costs. But Mayes, who previously served as an ACC commissioner, cast doubt on that justification.

“APS customers are already paying more than they were a year ago—and now the utility wants to tack on nearly 14% more?” she said. “That’s not just bad policy—it’s an insult to Arizona ratepayers.”

Mayes announced that her office will formally intervene in the ACC rate case and intends to “vigorously oppose” the increase on behalf of consumers.

“As Arizona’s Attorney General, I have a duty to protect consumers from corporate greed,” Mayes added. “I will not stand by as APS and Pinnacle West attempt to fleece Arizonans with yet another unjustified rate hike.”

Last year, the ACC approved a new controversial “Formula Rate Plan” policy. Previously, utilities had to base rate requests on a prior year’s cost data and undergo a lengthy review process that often took years. Under the new policy, which remains optional, utilities can adjust rates annually using a formula that reflects current costs.

The rate increase is supported by members of the ACC, including embattled Commissioners Nick Myers and Kevin Thompson, who argue that the change promotes “gradualism” by smoothing out rate adjustments and helping to mitigate “regulatory lag.” They argue that the approach is widely used by other states and by the Federal Energy Regulatory Commission (FERC).

Myers and Thompson were recently criticized for statements made about Arizonans “not understanding” how public utility pricing is determined. You can read more about the two commissioners here.

Critics of the Formula Rate Plan warn that the move shifts power away from consumers by reducing public involvement and oversight in shorter filings. The Residential Utility Consumer Office and Attorney General Mayes contend the policy was rolled out as a statement rather than through formal rulemaking, potentially bypassing important procedural safeguards. Given the new formula rate plan, these “incremental” rate increase cases could become an annual event.

This is an ongoing situation. The Globe will report as it changes.