Both APS and TEP are seeking significant rate hikes (about 14% each) from the Arizona Corporation Commission. SRP already implemented an increase that went into effect this November. The utilities cite population growth, higher operating costs, and rising demand from data centers as reasons for the rate hikes. These factors drive up expenses, including upgrades to the grid, that utilities want recovered through customer bills.
Low-income households face the harshest impact. Census data shows increasing rates of energy insecurity, including inability to pay bills, unsafe indoor temperatures, and cutting essentials like food or medicine to keep power on. At the same time, state regulators are moving to repeal energy efficiency standards that help lower bills. Wildfire AZ argues the loss of programs like weatherization would increase financial strain on Arizonans already struggling to keep up.