Apr. 7--The Arizona Corporation Commission will conduct a meeting today to
hear public comments on a request by Arizona Public Service to increase its
rates by nearly 10percent. The meeting will begin at 10 a.m. in the main hearing
room at the Corporation Commission building, 1200 W. Washington St., Phoenix. The five-member panel regulates most utilities in Arizona, including APS, and
sets their rates. The proposed rate hike has drawn strong opposition from the
commission's staff, which recommended that APS rates be reduced by about 8
percent instead of increased. The Residential Utility Consumer Office, which
represents consumer interests in proceedings before the commission, also opposes
the increase and said rates should be reduced by 2.8percent. Officials of APS, a unit of Phoenix-based Pinnacle West Capital Corp., said
the increase is needed to pay for five power plants the company said were built
to supply the growing demand for electricity by APS customers. But the
commission staff said APS might be able to acquire electricity for its customers
from other sources that are cheaper. The consumer office agreed but said APS
should spend more for energy conservation programs, so it backed a lesser rate
cut. No decision will be made today.