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This covers the cost of programs approved by the ACC, including renewable energy and energy efficiency programs. The 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 funds, and the Solar Communities program program.
- 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.
Frequently Asked Questions
Why did I receive a credit to my bill?
Every year we review adjustor charges to ensure what we collect aligns with approved program costs. We estimate as best we can with the information we have but various factors impact what we collect. During this year’s review, we saw a surplus due to increased customer usage because of hotter than normal weather and more new customers coming online. Other programs, such as Green Power Partners, have been successful and generated revenue that flows back to customers. We wanted to return these funds to customers as a larger credit rather than spread it out over time.
I had heard the credit was going to happen in May – why is it pushed to July and August?
During its open meeting on April 22, the Arizona Corporation Commission voted to move the credit to summer months, when energy use and bills are higher, to help customers benefit from the temporary decrease in the rate. This results in a reduction of July and August 2025 bills by about $10 each month for the typical residential customer who uses 1,050 kilowatt hours a month.
Why is the rate going back up in September? Why isn’t it permanent?
The amount we must collect is outlined in our Renewable Energy Standard and Demand Side Management plans, which pay for renewable energy and energy efficiency programs. They are filed and reviewed by the Arizona Corporation Commission (ACC), who approves the programs and the necessary funding. If there are any required changes, whether to the programs or the rates going up or down, we work with the ACC and inform customers.
What programs/services does this pay for, and why am I paying for them?
The Demand Side Management Adjustment Charge pays for important energy saving programs, such as Limited Income Weatherization, Virtual Energy Checkups, and Cool Rewards -- which compensates customers who have enrolled in the program for allowing their smart thermostats to be adjusted when demand for energy is high. During these times of high demand, we’re able to save energy -- equivalent to a small power plant that can power thousands of homes.
The Renewable Energy Adjustment Charge pays for a portion of renewable generation such as wind and solar, customer programs such as Solar Communities, and support for customers who wish to add solar and batteries to their homes.
What can I do to lower my bill?
Managing your energy usage is key to how much you pay each month since most charges are based on how much energy you use. APS has multiple rate plans, including Time of Use plans when the cost per kilowatt hour is lower on weekdays between the times of 7p to 4p, all weekends and federal holidays. You can see if you would’ve saved money on another plan by using the Most Economical Plan online tool or look for the information on your monthly bill.
We also encourage customers to take advantage of our Virtual Energy Checkups where they’ll get free advice from an energy advisor, or shop APS Marketplace for great savings on LED light bulbs, smart thermostats, and much more.
Struggling to pay your bill? We are here to help customers through difficult times with a wide range of assistance programs for every level of need. Visit aps.com/assistance or call (602) 371-7171.
