APS Rate Case 2026: What Valley Homeowners Should Know Before Their Bill Changes

Arizona Public Service, better known as APS, has an open rate case before the Arizona Corporation Commission.

In plain English, that means APS is asking state regulators for permission to change what it charges customers for electricity.

That can feel frustrating to Valley homeowners—especially in the heat of another Arizona summer. Summer electric bills are already one of the harder things about living in the Phoenix area. When temperatures climb, air conditioners run longer, pool pumps work harder, and monthly energy bills jump up fast. All things considered, a new rate change isn’t exactly welcome news.

So, what is actually happening with the APS rate case? And is there anything homeowners can do about it?

Let’s look at the facts.

What Is the APS Rate Case?

A rate case is the formal process utilities use to request changes to customer rates.

Electricity is a regulated utility. That means that companies like APS cannot simply decide on their own to raise their prices. They must submit a request to the Arizona Corporation Commission, or ACC. The ACC reviews the request, hears evidence, gathers public comments, considers input from intervening parties, and eventually votes on whether to approve, reject, or modify the proposal.

According to the ACC, the APS rate case process includes multiple steps:

The utility files an application
The ACC reviews the application
A hearing schedule is set
Public comments and evidence are gathered
An Administrative Law Judge holds an evidentiary hearing
The Commission reviews and votes on a recommended order

In other words, changing a utility rate involves more than making a single decision; each case has to undergo a public review process that can take 12-18 months.

What Is APS Asking For?

APS filed its current rate request in June 2025, and a final decision is expected in late 2026.

The company says the request is meant to update rates based on the current cost of providing reliable power, including:

Investments in the electric grid
Wildfire risk reduction
Extreme weather preparation
Security
Other infrastructure needs

The proposal has been widely described as an increase of about 14% across customer classes, with residential customers potentially seeing an average increase closer to 16%. APS states that, under the proposed rate, a typical residential customer using 1,000 kilowatt-hours would see their monthly bill increase by about $20.

While that number gives homeowners a helpful reference point, it does not tell every household exactly what to expect, because energy use is not one-size-fits-all.

Your actual APS electric bill depends on several factors, including:

Your home’s energy use
Your rate plan
Your billing cycle
Weather
On-peak and off-peak usage
Whether you have solar
Whether you use batteries or energy management tools

You may not be able to calculate the exact impact the rate change would have on your home’s energy bill. Looking at a 16% increase would likely give you a ballpark estimate of your new payment, but remember that your actual impact could be higher or lower depending on your rate plan and usage.

When Would APS Bills Change?

As of June 2026, the APS rate case is still in progress. The evidentiary hearing began in May 2026, and a final decision is expected later in the year. If the ACC approves the rate adjustment, the change would come after the decision. No rate adjustments will occur until the rate case process is complete.

That means that homeowners can have confidence that their upcoming summer bills will not be affected. In fact, APS has specifically stated that its rate proposal will have zero impact on its customers during summer 2026.

Of course, that doesn’t mean summer bills will feel low (they never do). Arizona homeowners will likely still see higher bills in summer 2026, simply because energy use is higher during the warmer months.

Why Is APS Asking for a Rate Increase?

APS says current rates are based on older costs and no longer match what it costs to operate and strengthen the grid. The company points to inflation, rising equipment costs, growing demand, extreme weather, wildfire risk, and system reliability as reasons for updating rates.

APS has also proposed higher increases for extra-large energy users, including data centers, saying those customers should pay more of the costs associated with serving them. APS says it has proposed an increase of more than 45% for these users.

That part of the proposal matters, because many Arizona customers are concerned about whether large commercial energy users could shift costs onto residential customers. APS says its proposal is designed to help prevent that.

Why Are Some People Pushing Back?

Rate cases usually involve disagreement, and this one is no exception.

Consumer advocates and other parties are weighing in on the APS proposal. Does it go too far? Does it go far enough? Is it structured fairly?

Arizona Attorney General Kris Mayes has argued that the proposed increase is too high. In March 2026, her office filed expert testimony claiming APS’s proposed 14% increase could be reduced to 3% while still maintaining reliable service and a strong credit rating.

To be clear, that doesn’t mean the ACC will adopt that specific recommendation. That is just one piece of evidence involved in a rate case that includes many competing arguments and proposals.

Ultimately, that is the point of the entire process: APS presents its case; the ACC reviews the request; intervenors and public officials can challenge or support parts of the proposal; customers can comment; and then the Commission decides what it believes is just and reasonable.

What About APS Solar Customers?

Solar customers should pay attention to this rate case, too.

APS has said its current proposal includes an update to the Grid Access Charge for customers with rooftop solar. The company describes this as a way to better align rates with the cost of serving customers who use solar to generate some of their own electricity.

For homeowners considering solar, that can understandably raise questions:

Does solar still make sense with APS?
Will rate changes affect the payback timeline?
Is now the right time to add solar, or should I wait until the case is finalized?
How could time-of-use rates affect long-term savings?

The answer is: it depends—on your home, your usage, your roof, your rate plan, and how much energy you use during expensive on-peak hours. This is exactly why a one-size-fits-all solar proposal is not very helpful.

A good solar plan should account for APS rate structures, household usage patterns, system size, possible battery storage, and energy management—not just how many panels can fit on the roof.

What Homeowners Can Control Right Now

Arizona homeowners can’t really control the outcome of the APS rate case.

But we aren’t powerless, either.

Here are some practical ways Valley homeowners can control their energy costs, this season and year-round.

1. Understand Your Current APS Rate Plan

Many APS customers are on time-of-use plans, where electricity costs more during certain on-peak hours and less during off-peak hours. That means when you use energy can matter almost as much as how much energy you use.

If you’re not sure which plan you have, start there. Look at your APS bill or online account and review your current rate plan. Then compare it with how your household actually uses electricity.

A family that runs major appliances, charges an EV, and cools the home heavily during peak windows may have a very different bill than a household that can shift more use to off-peak times.

2. Reduce Peak-Hour Usage Where You Can

You do not have to live uncomfortably to make smart energy choices.

Small shifts can help, especially during summer. Running the dishwasher later, pre-cooling your home before peak hours, adjusting pool pump schedules, and avoiding large appliance use during expensive windows can all make a difference.

The goal is to avoid paying premium rates for energy use—without having to sweat through the summer.

3. Watch Your Biggest Energy Loads

In Arizona, air conditioning is usually the biggest driver of summer bills. But it’s not the only one.

Pool pumps, water heaters, old refrigerators, EV chargers, and leaky or poorly insulated homes can all add to monthly usage. If your bill feels unusually high, it may be worth looking beyond the thermostat.

Energy monitors, smart thermostats, and simple usage reviews can help you see where your home’s electricity is actually going.

4. Consider Whether Solar and Battery Storage Fit Your Home

Solar is not right for everyone, but for many APS homeowners, it can be a way to reduce exposure to utility rate changes. Batteries and energy management technology may also help some households use stored solar energy during more expensive on-peak windows.

The key is designing the right solar energy system for the home—not pretending that every roof has the same savings potential.

That’s what we do at Citrus Solar. We’re a solar company for Valley homeowners who want clear answers, local expertise, and a low-pressure way to understand their options. We’re all about helpful, transparent education—not alarmist messaging that overpromises and underdelivers.

5. Stay Informed—But Don’t Panic

The APS rate case is worth watching, but it’s not a reason to panic.

As of now, the proposal is still being reviewed. The final result may differ from APS’s original request, and impact to homeowners—including the timing, exact structure, and actual bill impact—will depend on what the ACC ultimately approves.

For now, the best approach for homeowners is to stay steady and practical: understand your bill, reduce energy waste where possible, pay attention to peak hours, and explore long-term energy options (like solar) with people who will explain the tradeoffs clearly.

The Bottom Line for Valley Homeowners

The APS rate case is a big deal, but clarity can help keep it in perspective.

Here are the facts:

APS is asking regulators to approve new rates.
The proposal is still under review.
Bills will not change until the case is finalized, likely in late 2026.

While homeowners cannot control the outcome of this case, they can control their energy use, including how much they use and when they use it. They can also talk to local experts who can help them decide whether tools like solar, batteries, or energy management make sense for their home.

Citrus Solar is here to help. We offer clear information that will actually help you make smart energy decisions. No scare tactics. No door-knocking. No oversized system you don’t need. Just straightforward answers from Valley neighbors who understand APS, Arizona summers, and what it takes to make smart energy choices here.