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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).
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).
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 it.
This surcharge recovers certain costs associated with APS's 2019 rate case, as required by the Arizona Court of Appeals. These costs include:
The following chart shows average impacts for all customer classes:
- 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.
The following chart shows average impacts for all customer classes:
| Customer Class | CRS Charge | Typical Usage per Month (kWh) | Net Impact |
| Residential | $0.00175/kWh | 1,050 | $1.84 |
| Commercial XS | $0.00175/kWh | 1,259 | $2.20 |
| Commercial Small | $0.00175/kWh | 10,802 | $18.90 |
| Commercial Medium | $0.00175/kWh | 61,057 | $106.85 |
| Commercial Large | $0.00175/kWh | 283,329 | $495.83 |
Learn more about this surcharge by viewing its rate schedule.
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 expanded 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 adjustor 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 December 2023, the DSMAC changed to $0.001726 per kilowatt-hour, an increase of $0.000352 per kilowatt-hour. At that time, it came out to a monthly increase of $0.37 for an average residential customer using 1,050 kilowatt-hours per month.
- Learn more about this adjustor by viewing its rate schedule.
This recovers a portion of the costs to comply with federally mandated environmental upgrades at APS generation facilities and grid. It typically resets in April of every year.
- In April 2023, the FEIS changed to $0.000137 per kilowatt-hour, a decrease from $0.000403 per kilowatt-hour. At that time, it came out to a monthly decrease of $0.28 for an average residential customer using 1,050 kilowatt-hours per month.
Learn more about this adjustor by viewing its rate schedule.
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 2022, the FTCA changed to $0.000807 per kilowatt-hour, a decrease of $0.000438 per kilowatt-hour. At that time, it came out to a monthly decrease of $0.46 for an average residential customer using 1,050 kilowatt-hours per month.
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.
Learn more about this adjustor by viewing its rate schedule.
- In June 2022, the LFCR changed to $0.002630 per kilowatt-hour, an increase of $0.001380 per kilowatt-hour. At that time, it came out to a monthly increase of $1.45 for an average residential customer using 1,050 kilowatt-hours per month.
Learn more about this adjustor by viewing its rate schedule.
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.
- In March 2023, the PSA changed to $0.019074 per kilowatt-hour, an increase from $0.007544 per kilowatt-hour. At that time, it came out to a monthly increase of $12.10 for an average residential customer using 1,050 kilowatt-hours per month.
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.
Learn more about this adjustor by viewing its rate schedule.
Adjustor Tariff Documents
To learn more about each adjustor and review tariff sheets, please click the link below.
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