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Bill Adjustors
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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
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:
- 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.
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.
In March 2024, this surcharge was eliminated following a decision by the ACC. It was designed to recover a portion of the costs to comply with federally mandated environmental upgrades at APS generation facilities and grid.
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 2023, the FTCA changed to $0.000370 per kilowatt-hour, a decrease of $0.000437 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.
Learn more about this adjustor by viewing its rate schedule.
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.
- In March 2024, the LFCR changed to $0.001420 per kilowatt-hour, a decrease of $0.001210 per kilowatt-hour. At that time, it came out to a monthly decrease of $1.27 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 2024, the PSA changed to $0.011977 per kilowatt-hour, a decrease from $0.019074 per kilowatt-hour. At that time, it came out to a monthly decrease of $7.45 for an average residential customer using 1,050 kilowatt-hours per month.
Learn more about this adjustor by viewing its rate schedule.
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.
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.
