Important News about the Transmission Cost Adjustor (TCA)

On May 15, APS filed a new transmission rate with the Federal Energy Regulatory Commission ("FERC"), which sought to update APS's wholesale transmission rates to more accurately reflect the costs that APS incurs in providing transmission services. Transmission costs are federally regulated as a result of the interstate nature of electric transmission, and FERC has jurisdiction over electric transmission rates.

As part of this process, APS also filed an application with the Arizona Corporation Commission ("ACC") seeking authorization for this increase to be implemented for retail customers through a Transmission Cost Adjustment ("TCA").

The charge appears as a separate line item on your bill under "Charges for Electricity Services" and is identified as "Transmission Cost Adjustment". If approved, the updated TCA charge will increase average monthly bills by approximately 0.94 percent or by $1.23 per month for residential customers based on monthly consumption of 1,169 kilowatt hours and the average monthly bills for General Service customers will increase by approximately 0.66 percent or by $6.21 per month based on monthly energy consumption of 8,663 kilowatt hours. Large General Service customers will see a decrease of $932 per month based on average monthly energy consumption of 4,008,132 kilowatt hours. Individual bill impacts will vary with customer's actual energy usage. If approved by the ACC, the new charge will become effective July 1, 2009.

APS offers tips and ideas for reducing electricity use on aps.com. For additional information or questions contact us or call (800) 253-9405 or (602) 371-7171.