Arizona Public Service (APS), the state's largest utility provider, is once again under scrutiny after seeking a significant rate hike of nearly 14% for residential customers, as reported by ABC15 . This proposed increase would follow on the heels of an 8% rise approved last year, prompting concerns of growing financial pressures on households already grappling with higher living costs.

APS argues that the hike is necessary due to escalating operational costs, inflation, and unstable supply chains, and if the Arizona Corporation Commission green-lights the proposal, residential bills could swell by 14.5%, which would translate to roughly $20 more per month for a customer using 1,000 kilowatt-hours, yet this figure could vary depending on a range of factors including energy consumption and prevailing weather conditions, but the proposal has raised eyebrows and ire in equal measure especially when considering the utility's recent financial maneuvers and miscalculations that have come to light, according to ABC15 .

Following the revelation of an APS surcharge balance that is a staggering 1,000 times higher than initially projected, voices are growing louder for an audit of the company's finances, 12News reported. Despite APS's initial assurances that a pandemic-related fee increase would zero-out the balance, the reality proved starkly different, prompting Arizona PIRG's executive director, Diane Brown, to demand a clear explanation for the sizeable discrepancy as customers face a prolonged surcharge.

In contrast to APS's financial quagmire, Tucson Electric Power emerged as a paragon of efficiency, successfully refunding customers after recovering from pandemic-related losses, which sets a starkly different narrative when compared to the APS's ongoing fiscal challenges and "unrealized losses" totaling $459 million from its natural gas hedging program, these developments have effectively cast a shadow over APS's claims and the transparency of its operations, "APS ratepayers continue to get socked, what seems to many, month after month," Brown told 12News , highlighting the divergence in fortunes between the utility's customers and its shareholders.

Amid controversy, APS is preparing to ask for another rate increase. This puts consumers in a tough spot—wanting reliable power but facing higher bills that could strain their budgets. The Arizona Corporation Commission is reviewing the request, while customers and watchdog groups are pushing for answers and fairness, as per 12News .