Skip Ribbon Commands
Skip to main content
Adjustors help us keep the amount you pay for electricity in line with what it actually costs us to provide power. Adjustor also help pay for renewable energy programs and incentives. Adjustors are reviewed regularly by the Arizona Corporation Commission (ACC) and change to accurately reflect our costs.
​lost fixed cost recovery (lfcr)

In May 2012, the Arizona Corporation Commission (ACC) approved new rates for APS. Because more customers are installing renewable energy systems such as solar and wind, and energy efficiency measures such as compact fluorescent light bulbs and refrigerator recycling, APS is selling less electricity, but fixed costs remain. APS is allowed to implement a new charge to recover a portion of the fixed costs.

what are fixed costs?
Fixed costs are for items that are needed regardless of how much electricity is sold, such as power poles, wires and other delivery infrastructure.
 
who is affected by this change?
All residential and small business customers are now subject to lost fixed cost recovery. Large commercial and industrial customers have current rate structures which already include the recovery of fixed costs.
 
what is the new charge?
A new charge will begin appearing on affected customers’ bills in March 2013 in one of two forms: a flat addition to the existing customer charge (Flat Charge Option) or a new Lost Fixed Cost Recovery (LFCR) percentage of bill charge.
what do I need to do?
Unless a residential customer notifies APS and selects the Flat Charge Option, the new LFCR will automatically begin appearing on your bill in March 2013.
 
what is the difference between the two options?
The main difference is that the Flat Charge Option will remain constant or flat for the next four years. The LFCR will change from year-to-year based on the amount of APS’s lost sales.
 
what is the cost difference of the two options?
The projected total costs of the two options should be approximately the same at the end of four years. The table below shows the projected monthly LFCR costs for the first year only and the fixed Flat Charge Option monthly cost for all four years:
 
Monthly Usage (kwh per month)​ LFCR Variable Charge
(0.29% of bill monthly)* First Year​		 Flat Charge Option
($ per month)** ​
0-400​ $0.14-$0.20​ $0.60​
401-800​ $0.20-$0.29​ $1.20​
801-2000​ $0.30-$0.72 ​ $2.75​
2001+​ $0.77-$2.31​ $6.50​
 
 
* Projection only; the amount is subject to final calculations and the percentage will change annually upon ACC approval.
**Based on an average 30-day bill
 
As an example, we expect the LFCR for the average customer using 1,110 kWh per month to be 38 cents per month for year one, subject to increases in subsequent years. The addition to the existing customer charge in the Flat Charge Option for that same customer would be $2.75 per month.
 
how do the two options work?
The Flat Charge Option is a fixed amount based on your monthly energy usage (as shown in the table above). The amounts are set for four years, which is the period covered by the ACC approved rates.
The LFCR is calculated annually based on lost sales from measured and approved ACC programs for energy efficiency and customer-sited, non-APS owned renewable energy systems. APS will file results with the ACC each January; the ACC then sets the LFCR amount for the 12-month period (March-February). It is calculated as a percentage of your bill.
tariff sheet

see more close

+-
power supply adjustor (psa)

To deal with the rapid changes in fuel and purchased power costs, APS received permission in April of 2005 from the Arizona Corporation Commission (ACC) to pass on fuel (primarily natural gas) and purchased power costs beyond those included in base rates through a Power Supply Adjustor (PSA).

current psa level

forward component  - $0.001004/kWh 
historical component - 0.002333/kWh

tariff sheet ​
​
environmental improvement surcharge (eis)

The EIS helps us recover a portion of the cost of investments and expenses for environmental improvements at our generation facilities to comply with environmental standards mandated by federal laws or regulations.

current eis level
All kWh - $0.00000/kWh
 
tariff sheet
 
​