The average monthly bill for Arizona Public Service Co. residential customers will rise by roughly 8%, in the range of $10 to $12 a month, after a rate increase approved by the Arizona Corporation Commission.The new rates will take effect on or after March 8.An average bill-increase figure of $10.59 was cited when the commissioners voted 4-1 in favor of the increase late Thursday night. Roughly two hours after the vote, APS said it was still trying to determine the exact increase. The commissioners also voted to approve a controversial amendment that adds a monthly charge of $2.50 to $3 for residential customers with rooftop solar systems.The utility regulators’ vote came after 11 hours of an open hearing in which about 45 residential customers, businesses and representatives of special interest groups spoke. The commission also received more than 2,000 written comments over a 20-month process.The increase provides Arizona’s largest electric utility, which serves 1.4 million customers in 11 of the state’s 15 counties, with a return on equity, a profitability measure, of about 9.8%.APS President Ted Geisler argued that a return of at least that much was needed to reassure the creditors and lenders on whom APS relies. With the rate increase, he said, the utility is largely receiving revenue to recoup expenses it incurred in prior years to expand infrastructure.“We need immediate and sufficient rate relief,” Geisler said. “We must continue to rely on lenders to fund the grid investments necessary.” He said APS’ credit rating and profitability have faltered and the stock price of parent Pinnac …
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