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Bill Adjustors

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What are adjustors?

Adjustors are separate line items on your bill that increase or decrease at certain times throughout the year to fund specific programs and/or services. They are part of your overall electricity bill that are called out separately since they can change up or down throughout the year. 

How do adjustors affect my bill?

An adjustor line item on your bill can either be a charge or a credit that is based on your actual monthly energy usage. When an adjustor charge or credit is changed, a message on page 2 of your bill gives the approximate increase or decrease for a typical customer. If your usage is higher than typical, the impact will be higher. If usage is lower, the impact is lower.

(Typical residential usage is based on 1,050 kilowatt-hours in a month.)

Do adjustors really go up or down, or do they just go up?

Adjustors go up and down. From 2018 to 2022, some adjustors decreased and some increased. The net result is that, in June 2022, the average APS residential bill is lower than it was at the beginning of 2018. Increases or decreases in an adjustor occur due to changes in costs associated with that adjustor, as well as changes in energy and demand consumption.
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Making sense of your bill

Check out a sample of what your bill looks like, including where you will find adjustor line items and other explanations of charges.

Adjustor Information

Click on the adjustor name below to learn more about the adjustor and how it has changed since 2018.

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The Environmental Improvement Surcharge recovers some of the costs for environmental improvements for the APS grid and facilities.

2018 – Increase
2019 – Increase
2020 – Increase
2021 – Increase
2021 – Decrease (with rate case)

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The Renewable Energy Adjustment Charge funds renewable energy projects and is combined with the Demand Side Management Adjustment Charge to appear on your bill as the Environmental Benefits Surcharge.

2018 – Decrease
2019 – Decrease
2020 – No change
2021 – Increase early in the year; Decrease in December 
2022 – Increase 

The most recent increase in 2022 is driven by more investments in renewable generation projects, Coal Community Transition funds and the expanded Solar Communities Program.

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The Demand Side Management Adjustment Charge funds energy efficiency projects and programs. (It is combined with the Renewable Energy Adjustment Charge to appear on your bill as the Environmental Benefits Surcharge.)

2018 – No change
2019 – No change
2020 – No change
2021 – Increase

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The Lost Fixed Cost Recovery adjustor is a charge to recover fixed costs of providing service such as: power poles, wires and other delivery infrastructure, that are lost due to mandated energy efficiency and customer solar programs, which reduce the amount of revenue to cover these costs.

2019 – Increase early in the year to kilowatt charges for customers on plans with a demand charge and a decrease for kilowatt-hour charges for customers on a plan without a demand charge; Decrease later in the year for all plans.
2020 – Decrease
2021 – No change
2022 – Increase 

The most recent increase in 2022 is driven by customer participation in energy efficiency and renewable programs and impacts of not adjusting the rate in 2021.

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This provides an adjustment to customer bills based on changes to the federal corporate income tax rate.

2018 – Decrease
2019 Part 1 – Decrease
2019 Part 2 – Decrease
2020 – Increase (This is still a credit back to customers, but a smaller credit than 2019.)
2021 – Increase (with rate case) (credit went to zero)

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This covers what APS pays for fuel and purchased power.

2018 – Increase
2019 – Decrease
2020 – Decrease
2021 – Increase (The increase is a result of higher natural gas prices and increased customer usage during 2020’s record hot summer.)
2021 – Increase
2022 – Increase

The Power Supply Adjustment went up due to a number of factors, including extreme heat in the Western United States that sent customers’ energy needs higher and strained regional power supplies. This combination of increased demand during a period of regional energy shortages led to higher costs.

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The Transmission Cost Adjustment allows for recovery of costs authorized by the Federal Energy Regulatory Commission related to necessary transmission infrastructure.

2018 – Decrease
2019 – Decrease for residential customers; Increase for business customers
2020 – Decrease
2021 – Decrease
2022 – Decrease for residential customers; Increase for business customers  

The most recent changes to this adjustor in 2022 are driven by a change in transmission costs to reliably serve customers compared to the prior year. Costs of the Transmission Cost Adjustment are allocated by customer class (e.g., residential or commercial) according to their contribution to peak load. This year, commercial load increased and residential load decreased, with the Transmission Cost Adjustment adjusting accordingly.
Adjustor Tariff Documents
To learn more about each adjustor and review tariff sheets, please click the link below.
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