Arizona Public Service Co. seeks 8 percent rate increase

Arizona Public Service Co. announced Friday it is seeking a rate increase starting July 1, 2009, to pull in more than $265.5 million to cover higher fuel prices and fund new facilities.

It will ask the Arizona Corporation Commission to approve an 8.1 percent increase, with company officials saying it would add roughly $11.50 to the average user's monthly bill.

The Phoenix-based utility cited increased equipment costs and the need to invest more than $1 billion a year in its system to ensure reliable operations.

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In addition to the overall increase, APS is proposing "super peak" rates from 3 to 6 p.m. to encourage conservation during those peak summer use hours.