Attorney General Mayes Challenges Utility Rate Mechanism That Could Guarantee Higher Bills
PHOENIX – Attorney General Kris Mayes today filed an Application for Rehearing challenging a recent Arizona Corporation Commission decision that approved a new rate-setting mechanism for UNS Gas, Inc. that could lock in automatic annual rate increases for the company's ratepayers with little meaningful oversight.
The filing argues that the Annual Rate Adjustment Mechanism (ARAM) approved in Commission Decision No. 81653 imposes unjust and unreasonable rates by shifting financial risk from UNS Gas shareholders to ratepayers and essentially guaranteeing that the company will earn its authorized rate of return regardless of how efficiently it operates.
"Arizonans deserve utility rates that are fair and transparent, not a rubber stamp process designed to increase rates automatically," said Attorney General Mayes. "This mechanism strips ratepayers of the due process protections they're entitled to under the Arizona Constitution."
The filing also argues the ARAM's streamlined annual review process — which gives parties just a few months to challenge rate increases with limited discovery and no witness testimony from the company — fails to provide constitutionally required due process.
AG Mayes is asking the Commission to rehear the decision and issue an amended order consistent with Arizona's constitutional requirements.