What APS is asking for
Arizona Public Service (APS) has asked the Arizona Corporation Commission (ACC) for a base-rate increase to recover about $1.7 billion in grid investment, reported in different coverage as roughly 14% to nearly 16% — in practice, an increase of about $20 a month for an average residential customer. APS is also seeking annual formula-rate adjustments going forward, rather than relying solely on periodic full rate cases, which would let rates move more frequently between full ACC reviews. A decision from the ACC was still pending as of the most recent coverage.
Salt River Project (SRP), the other major utility serving the Phoenix metro, raised its fixed monthly charge by 50% in November 2025. SRP did approve a temporary summer rate decrease of roughly 3% running May through October 2026, but that's a seasonal offset layered on top of a permanently higher fixed charge, not a reversal of it.
Why Arizona utilities are asking for more
Arizona's population and industrial growth — including new data centers and manufacturing along the Phoenix metro corridor — are adding load faster than existing generation and transmission infrastructure was built for. Utilities point to that growth, along with extreme summer peak demand from air conditioning, as the justification for both base-rate increases and structural changes like higher fixed charges and formula-rate adjustments.
What you can do right now
Arizona hasn't yet passed a law legalizing permit-free plug-in (balcony) solar the way Utah, Colorado, Maryland, and several other states have, so a grid-tied plug-in system isn't a clean option here today. That doesn't mean you're out of options: a battery-based solar generator or portable power station isn't grid-connected at all, so it sidesteps the interconnection question entirely — and in a state with Arizona's sun resource, it can meaningfully offset AC and peak-hour draw regardless of what the ACC decides.
Bottom line
Whether the ACC approves the full APS request or trims it, Arizona bills are trending up, and SRP customers already have a higher fixed charge to show for it. Track legal changes for your state and look at off-grid backup power options that work today, independent of the rate case outcome.
Further reading
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