{"id":12627,"date":"2026-03-27T20:46:58","date_gmt":"2026-03-27T20:46:58","guid":{"rendered":"https:\/\/www.solar.com\/learn\/?p=12627"},"modified":"2026-03-27T20:50:21","modified_gmt":"2026-03-27T20:50:21","slug":"aps-electric-rate-increase","status":"publish","type":"post","link":"https:\/\/www.solar.com\/learn\/aps-electric-rate-increase\/","title":{"rendered":"APS Electric Rate Increase in 2026: What Customers Need to Know"},"content":{"rendered":"<p>Many Arizonans are bracing for even higher electricity bills in 2026, as utility regulators consider a 16% bill increase request for Arizona Public Service (APS) residential customers.<\/p>\n<p>If approved as proposed, the average household would see its bill increase by $20 a month as soon as July 2026.<\/p>\n<p>&nbsp;<\/p>\n<gs-injectable background = 'true' border='true' primary_color = '#8b72d3' secondary_color='#f98d7e' utm_campaign = 'get_started_injectable' utm_medium='APS rate hike 2026' content_texts = 'true' upper_text='Get custom solar proposals' upper_text_span = 'for your home' lower_text='Hedge against fast-rising' lower_text_span = 'APS rates' get_started_text='Get started' only_community_solar='false'><\/gs-injectable>\n<p>&nbsp;<\/p>\n<h2>At-A-Glance: 2026 APS Rate Impact<\/h2>\n<p>Arizona&#8217;s largest utility has <a href=\"https:\/\/www.aps.com\/en\/Utility\/Regulatory-and-Legal\/Rate-case#:~:text=In%20May%202025%2C%20APS%20filed,typically%\" target=\"_blank\" rel=\"noopener\">filed a major rate<\/a> case <span class=\"citation-135 citation-end-135\">with the Arizona Corporation Commission (ACC).<\/span> If approved, residential customers will see a double-digit jump in their monthly bills starting in the second half of 2026.<\/p>\n<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr>\n<td style=\"width: 50%;\">Metric<\/td>\n<td style=\"width: 50%;\">Details<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 50%; text-align: left;\">Utility Company<\/td>\n<td style=\"width: 50%; text-align: left;\">Arizona Public Service (APS<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 50%; text-align: left;\">Requested Total Revenue Increase<\/td>\n<td style=\"width: 50%; text-align: left;\">$579 million<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 50%; text-align: left;\">Average Monthly Bill Impact (residential)<\/td>\n<td style=\"width: 50%; text-align: left;\">$20 per month<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 50%; text-align: left;\">Proposed Effective Date<\/td>\n<td style=\"width: 50%; text-align: left;\">Between July and December 2026<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 50%; text-align: left;\">Status<\/td>\n<td style=\"width: 50%; text-align: left;\">Pending ACC approval (Hearings begin May 18, 2026)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h2 data-path-to-node=\"7\">Why Are APS Rates Going Up?<\/h2>\n<p data-path-to-node=\"8\">APS claims the increase is necessary to recover $1.7 billion in recent investments and to account for economic changes since their last rate adjustment. Key justifications provided in the filing include:<\/p>\n<ul>\n<li data-path-to-node=\"8\"><b data-path-to-node=\"9,0,0\" data-index-in-node=\"0\"><span class=\"citation-134\">Grid Modernization:<\/span><\/b><span class=\"citation-134 citation-end-134\"> Significant spending on poles, wires, and substation upgrades to maintain &#8220;top-tier reliability.&#8221;<\/span><\/li>\n<li data-path-to-node=\"8\"><b data-path-to-node=\"9,1,0\" data-index-in-node=\"0\">Extreme Weather Resilience:<\/b> Increased costs for vegetation management and wildfire mitigation to protect infrastructure during Arizona\u2019s record-breaking heatwaves and monsoon seasons.<\/li>\n<li data-path-to-node=\"8\"><b data-path-to-node=\"9,2,0\" data-index-in-node=\"0\">Economic Growth:<\/b> Preparing for higher peak energy demand driven by population growth and high-usage data centers.<\/li>\n<li data-path-to-node=\"8\"><b data-path-to-node=\"9,3,0\" data-index-in-node=\"0\"><span class=\"citation-133\">Inflation:<\/span><\/b><span class=\"citation-133 citation-end-133\"> APS notes that the cost of critical parts, like transformers, has risen as much as 64% since 2021.<\/span><\/li>\n<\/ul>\n<h3 data-path-to-node=\"10\">The &#8220;Formula Rate&#8221; Overhaul: Are Yearly Rate Hikes Coming?<\/h3>\n<p id=\"p-rc_a3c8e98bd5f02607-72\" data-path-to-node=\"11\"><span class=\"citation-132\">The most impactful part of the 2026 proposal isn&#8217;t just the one-time $20 jump\u2014it&#8217;s the request to switch to <\/span><b data-path-to-node=\"11\" data-index-in-node=\"108\"><span class=\"citation-132\">&#8220;Formula Rates.&#8221;<\/span><\/b><\/p>\n<p data-path-to-node=\"11\"><span class=\"citation-132 citation-end-132\">Under traditional rules, a utility must undergo a massive, multi-year public audit (a &#8220;rate case&#8221;) before raising prices.<\/span> <span class=\"citation-131\">APS is <a href=\"https:\/\/www.kjzz.org\/politics\/2026-03-05\/aps-wants-to-raise-rates-but-its-also-asking-for-a-major-overhaul-in-how-it-charges-customers\" target=\"_blank\" rel=\"noopener\">asking to bypass this process<\/a> for the next five years, allowing them to adjust rates <\/span><b data-path-to-node=\"11\" data-index-in-node=\"339\"><span class=\"citation-131\">every single year<\/span><\/b><span class=\"citation-131 citation-end-131\"> based on their own internal cost studies.<\/span> <span class=\"citation-130 citation-end-130\">Consumer advocates warn this would lead to &#8220;compounding&#8221; price hikes with less public oversight and fewer opportunities for customers to fight back.<\/span><\/p>\n<p data-path-to-node=\"11\">\n<h2 data-path-to-node=\"11\">How Will The APS Rate Hike Impact Your Bill?<\/h2>\n<p data-path-to-node=\"13\">A $20 monthly increase would add $240 to the average Arizonan&#8217;s annual electricity costs, or <em>at least<\/em> an additional $2,400 over the next 10 years.<\/p>\n<p data-path-to-node=\"14\">If the formula rate plan is approved, this number could climb much higher as small, incremental yearly increases stack up. By 2036, a family could easily be paying thousands more than they do today just to keep their air conditioning running during the summer.<\/p>\n<p data-path-to-node=\"14\">\n<h2 data-path-to-node=\"11\">How to Offset the APS Rate Hike<\/h2>\n<p>With APS rates poised to rise (again), many Arizonans are looking to solar and battery storage to take control of their energy costs.<\/p>\n<ul>\n<li><strong>Lower your electricity costs:\u00a0<\/strong>Rooftop solar can power your home at a lower cost per kilowatt-hour than the utility grid.<\/li>\n<li><strong>Hedge against energy inflation:<\/strong> While utility rates rise unpredictably over time, solar provides a predictable cost of power.<\/li>\n<\/ul>\n<p>In addition to <a href=\"https:\/\/www.solar.com\/learn\/prepaid-solar-leases-ppas\/\" target=\"_blank\" rel=\"noopener\">new solar financing models<\/a> that benefit from a federal tax credit, Arizonans can claim a <a href=\"https:\/\/resilient.az.gov\/clean-energy-hub\/households\/residential-solar-and-wind-energy-systems-tax-credit\" target=\"_blank\" rel=\"noopener\">25% state tax credit<\/a> worth up to $1,000 for installing solar.<\/p>\n<p>&nbsp;<\/p>\n<gs-injectable background = 'true' border='true' primary_color = '#8b72d3' secondary_color='#f98d7e' utm_campaign = 'get_started_injectable' utm_medium='APS rate hike 2026' content_texts = 'true' upper_text='Get custom solar proposals' upper_text_span = 'for your home' lower_text='Hedge against fast-rising' lower_text_span = 'APS rates' get_started_text='Get started' only_community_solar='false'><\/gs-injectable>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many Arizonans are bracing for even higher electricity bills in 2026, as utility regulators consider a 16% bill increase request for Arizona Public Service (APS) residential customers. If approved as&#8230;<\/p>\n","protected":false},"author":51,"featured_media":12628,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":""},"categories":[81,4],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.5 (Yoast SEO v19.10) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>APS Electric Rate Increase in 2026: What Customers Need to Know | Solar.com<\/title>\n<meta name=\"description\" content=\"APS is requesting a 16% residential rate hike ($20\/mo) and a switch to yearly price increases. 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