Consumer Reports calls on the Arizona Corporation Commission to curb excessive rate increases from APS and TEP and protect ratepayers during the AI data center boom
Phoenix, AZ – Consumer Reports today submitted more than 1,700 petition signatures from members living in Arizona asking the Arizona Corporation Commission (ACC) to reject large rate increases from two of the state’s largest monopoly utilities Arizona Public Service (APS) and Tucson Electric Power (TEP).
APS has requested a 16% residential rate increase, estimated to cost customers an additional $240 a year. TEP has requested a 14% rate increase. Both utilities have also requested a substantial increase in their authorized profits, putting more money into their shareholders’ pockets with no tangible benefit to ratepayers. Consumer Reports submitted a letter calling on the ACC to reject these excessive rate hikes and to decrease, rather than increase, both utilities’ authorized shareholder returns.
CR recently investigated the role that public utility commissions like the ACC play in determining household electricity rates, and detailing how skyrocketing electricity bills are straining everyday households in Arizona and throughout the country.
“Electricity bills are rising far too fast in Arizona and across the country. At the same time, utility companies are posting record profits and their executives are raking in millions in compensation,” said Chris Harto, manager, energy policy at Consumer Reports. “While utilities need to make important investments to replace aging infrastructure, maintain reliability, and modernize the grid, more needs to be done to balance utility profits and customer affordability.”
At issue in this rate case is the high rate of profit for the two large monopoly utilities. APS and TEP are highly profitable, with 13% and 17% of customer bills going directly to company profits, respectively. Profits would increase even further if the higher returns both utilities have requested are approved by the ACC.
In addition to excessively high profits, CR also has concerns that residential customers may be asked to partially pay for infrastructure that is being built to meet potential future data center demand in the state. A Consumer Reports nationally representative survey of 2,146 US adults in November 2025 found that 78% of Americans were at least somewhat concerned that new data center development will increase their household electricity bills. TEP is currently contracted to provide power to the controversial $3.6b “Project Blue” data center project planned for Pima County. CR has asked the ACC to ensure that no costs associated with projects like this are passed on to residential ratepayers.
Along with letters to APS/TEP and petitions to ATP/TEP, CR also submitted 19 personal stories from members in Arizona struggling with their rising electricity bills, including this account:
“Being a senior citizen with limited income, it would mean making some budget changes. Like deciding what medications we can do without. My hubby has had a stroke and A/C is a necessity, not a choice,” said Pamela B., a Consumer Reports Member from Cottonwood, AZ. “APS doesn’t need more money, they need a better budget.”
CR’s work in Arizona is part of a broader energy affordability initiative, which is mobilizing consumers nationwide to advocate for fair utility policies as electricity costs continue to rise. Through petitions, consumer storytelling, research, and policy advocacy, CR is working to ensure that households—not just utilities and the technology industry—have a meaningful voice in decisions that determine who pays for America’s rapidly expanding electric grid.
As utilities across the country seek approval for billions of dollars in new infrastructure investments, CR is expanding its work with consumers, policymakers, and advocates in multiple states to promote affordable electricity, fair cost allocation, and greater accountability in utility and data center regulation.
Contact: cyrus.rassool@consumer.org