Power Supply Adjustment (PSA)

On March 28, 2005, the Arizona Corporation Commission (ACC) issued a decision that established the Power Supply Adjustor (PSA). On June 19, 2007 the ACC issued another decision maintaining the PSA but amending the current provisions. The PSA is a mechanism intended to adjust the revenue the company collects from its customer’s for fuel and purchased power costs. These costs have experienced significant volatility in recent history. The PSA allows the company to have a closer match between the company’s fuel and purchased power costs and the revenue it collects from its customers to pay these costs. This is done primarily through an adjustment to the PSA Adjustor Rate each February. PSA charges are subject to ongoing review and approval by the ACC.

Beginning July 1, 2007, the following PSA charges went into effect:

PSA 2007 Adjustor Rate           $.003987/kWh

PSA Surcharge                           $.001176/kWh

Beginning February 1, 2008 the following additional PSA charges went into effect.

PSA 2008 Adjustor Rate consists of two components:

Forward Component  Rate        $.002952/kWh

Historical Component Rate       $.001048/kWh

Total Current PSA Charge:       $.009163/kWh

The PSA charges are intended to reduce the company’s balance of uncollected fuel and purchased power costs. All of these charges are combined on the "Power supply adjustor" line of the bill. 

None of the PSA charges apply to the company's customers who are on either of the APS Energy Support (E-3 or E-4) programs.   

More details and answers to frequently asked questions about the Power Supply Adjustment (PSA)