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Bill Adjustors
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What are adjustors?
Adjustors – also referred to as adjustments or surcharges – are a part of the overall cost of electric service and appear as separate line items on your bill under “Charges for electricity services.” They increase or decrease at certain times in the year to fund important customer programs and services. Unlike base rates for electricity – which typically only change every few years following a rate case process – adjustors can change annually. That annual adjustment keeps our pricing more reflective of actual costs to serve customers and also helps customers experience gradual price changes, rather than all at one time at the end of a rate case.
How do adjustors affect my bill?
Adjustor amounts are based on your actual monthly energy usage. Each adjustor is reviewed on an annual basis by the Arizona Corporation Commission (ACC). The typical residential customer uses 1,050 kilowatt-hours in a month. If your usage is higher than typical, the impact will be higher. If usage is lower, the impact is lower.
If you’re looking for ways to manage energy costs, we’re here to help. You can view savings tips or call us to discuss ways to save at (602) 371-7171 (metro Phoenix) or (800) 253-9405 (other areas).
Adjustor Information
Court Resolution Surcharge
This surcharge recovers certain costs associated with APS's 2019 rate case, as required by the Arizona Court of Appeals. These costs include:
- Federally mandated emissions controls (called selective catalytic reduction) at the Four Corners Power Plant, which provide reliable power for APS customers, and;
- A change in APS's allowable return on equity, which supports APS’s ability to attract investment in Arizona’s energy infrastructure.
In March 2024, the Court Resolution Surcharge was reduced to $0.001480 per kilowatt-hour. This is a monthly decrease of $0.29 for an average residential customer using 1,050 kilowatt-hours per month.
Learn more about this surcharge by viewing its rate schedule.
Environmental Benefits Surcharge
This covers the cost of programs approved by the ACC, including renewable energy and energy efficiency programs. This surcharge is comprised of two adjustments:
The Renewable Energy Adjustment Charge (REAC) pays for portions of solar and wind generation projects, Coal Community Transition funds, and the Solar Communities program. It typically resets in February of every year.
- In January 2023, the REAC changed to $.007100 per kilowatt-hour, a decrease of $0.000712 per kilowatt-hour, up to a cap of $2.84. At that time, it came out to a monthly decrease of $0.16 for an average residential customer using 1,050 kilowatt-hours per month.
- Learn more about this surcharge by viewing its rate schedule.
The Demand Side Management Adjustment Charge (DSMAC) funds energy efficiency projects and programs, such as Limited Income Weatherization, smart thermostat programs (such as Cool Rewards), and HVAC rebates. It typically resets in March of every year.
- In March 2024, the DSMAC changed to $0.002393 per kilowatt-hour, an increase of $0.000667 per kilowatt-hour. At that time, it came out to a monthly increase of $0.70 for an average residential customer using 1,050 kilowatt-hours per month.
- Learn more about this adjustor by viewing its rate schedule.
Federal Transmission Cost Adjustment
This recovers costs authorized by the Federal Energy Regulatory Commission related to necessary transmission infrastructure – large power lines that move electricity long distances, such as from a power plant to a town's substations. It typically resets in June of every year.
- In June 2024, the FTCA changed to $0.001060 per kilowatt-hour, an increase of $0.000690 per kilowatt-hour. At that time, it came out to a monthly increase of $0.72 for an average residential customer using 1,050 kilowatt-hours per month.
Learn more about this adjustor by viewing its rate schedule.
Lost Fixed Cost Recovery Adjustor
This recovers the costs of providing service through power poles, wires and other infrastructure, that are not collected due to mandated energy efficiency and rooftop solar projects. It appears on your bill as LFCR and typically resets in May of every year.
- Starting January 1, 2025, the LFCR changed to $0.002110 per kilowatt-hour, an increase of $0.000310 per kilowatt-hour. At that time, it came out to a monthly increase of $0.33 for an average residential customer using 1,050 kilowatt-hours per month.
Learn more about this adjustor by viewing its rate schedule.
Power Supply Adjustment
This recovers the cost of fuel (such as natural gas) and purchased power (such as electricity we buy on the market or from private companies). APS does not make a profit off these costs; charges are passed on to customers without markup. It typically resets in February of every year.
Starting with March 2025 bills, the PSA rate changed to $0.013977 per kilowatt-hour (kWh), an increase of $0.002 per kWh. For a typical residential customer using 1,050 kWh in a month, that comes out to a monthly increase of $2.10.
Learn more about this adjustor by viewing its rate schedule or frequently asked questions.
System Reliability Benefit Adjustment Mechanism
This is a new mechanism that will allow APS to request recovery of costs for new APS-owned generation facilities, procured through competitive all-source requests for proposal, in between rate cases. Once a project is approved, this line item will appear in the same area as other adjustors on customer bills. Until then, there will be no changes on customer bills.
Tax Expense Adjustor Mechanism
Resets only when there is a change to the federal corporate income tax rate. Since it is set to $0, it does not appear on customer bills.
Learn more about this adjustor by viewing its rate schedule.
