Arizona regulators narrowly approved a proposal to allow utility companies to seek yearly rate increases despite opposition from consumer protection advocates.
The Arizona Corporation Commission gave the go-ahead for “formula rate plan” adjustments — the process used to up prices — to occur more frequently.
The commission says it gives utilities the option to make small adjustments annually instead of bigger jumps that can shock consumers.
However, critics argue it violates state law and shifts financial risks from utilities and their shareholders to consumers.
The decision comes as Unisource Energy and Arizona Public Service have both raised their rates by about 8% this year.
The Salt River Project says it is considering an increase in energy rates for its customers next year.