Arizona Public Service rates decrease after regulators give final approval

APS plans change

PHOENIX, Ariz. (KYMA, KECY/AP) - The Arizona Public Service (APS) wanted to raise customer rates but the Arizona Corporation Commission has given final approval to reduce base rates instead.

This approval will slash base rates by about $119 million, which APS calls "shortsighted" and is willing to sue, as well as gave a warning of increased costs in the future.

APS also mentioned how the decrease will raise the company's borrowing costs and have customers pay for it.

While APS asked for a nearly $200 million rate increase, the Corporation Commission voted 3-2 on a reduction.

The reduction will be in effect starting in December, but APS states full implementation will take months.