Updated: Friday, April 6, 2018
A group of consumers are taking on Arizona Public Service (APS) in what has been described as a ‘David vs. Corporate Goliath’ battle. Stacey Champion, a single mom and small business owner, is at the forefront. She started a petition page on change.org and has also set up a crowd funded legal defense fund at fundedjustice.com to take on APS through a rehearing by the Arizona Corporation Commission (AZCC). A quick glance at the page shows the average contribution is about $37, with many being $20 or $25.
“Getting a lawyer that will do this kind of work is not easy and not cheap.” she said. It took her two months to find Adam Stafford of Wong & Carter P.C. to represent her and other consumers in the case. Stafford formerly was on staff for one of the Commissioners so is very familiar with the workings of the AZCC. Champion said a number of attorneys she spoke either said they couldn’t due to conflict of interest, or said they didn’t want to give up the possibility of getting APS money in the future.
APS had originally sought an 11 percent increase and received approval for a 4.54 percent increase last year. However, consumers’ bills are reflecting increases much greater than 4.54 and the summer bills have yet to hit. In a response filed with the AZCC on March 8, APS said percentage increase was based on ‘adjusted 2015 customer usage’ rates and that adjustors changed in 2016 and 2017.
Adjustors change what is part of the base rate for electricity versus what is an added charge like a ‘meter reading’ or ‘billing’ charge that may appear on your APS statement. For example if ‘meter reading’ were part of the base rate in 2015 and now is a separate fee, the base rate would have been lowered when the ‘billing’ charge was separated out with no effect on the total cost. So by separating out some of these fees or services lowered the current base rate. By using a two year old higher base rate it would make the increase appear smaller. In the APS filing it states, ‘establishing monthly bill impacts in 2017 or 2018 would not establish any relevant fact or any meaningful conclusion’.
Comments supporting the rehearing from consumers show far greater increases. One customer paid $2599.48 for 2017. If they have the exact same usage in 2018, the cost will be $3037.01, an increase of $437.53 or a 16.8% increase. Another consumer showed their cost per Kilowatt Hour rose from 8.5 cents to 12.1 cents, a 42% increase. For more on the case, and consumer responses, you can go to the AZCC website azcc.gov, click on eDocket and search the case number E-01345A-18-0002. You may also contact the AZCC if you would like to comment in support of either side.
A Procedural Conference was held on March 28 in front of Chief Administrative Law Judge, Jane L. Rodda, to set the schedule for the case and the rehearing date before the AZCC. APS seems to be in a hurry to get this over with. In its March 8 filing it reads, ‘APS is concerned that delay will only push this matter closer to the November 2018 election’. A March 18 article by Arizona Daily Sun said over the last two years, APS and parent company Pinnacle West Capital Corp. spent over $10 million ‘to directly and indirectly influence elections and gave to other organizations to lobby. The consumers’ attorney, Adam Stafford, asked for more time for more analysis in the case in a filing on March 21. It reads in part, ‘As for the November 2018 election, it is irrelevant to this proceeding’. It also says APS’s concern ‘should not trump Ms. Champion’s right to due process.’ The judge’s ruling on the hearing schedule has not been released as of press time.
