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What is the Power Supply Adjustment?
This adjustor covers what APS pays for fuel and purchased power – energy it buys through contracts or on the open market from other providers. It is part of the overall cost of energy and noted as a separate line item on customer bills. It can go up or down annually (usually in February).
Does APS make any money (in any form) from the Power Supply Adjustment?
No, APS does not profit from fuel and purchased power. The adjustor strictly covers incurred costs to purchase fuel and power for customers. It is what is known as a “pass-through” cost.
Why does the Power Supply Adjustment need to be raised?
We understand how frustrating it can be to see rising costs. APS works to mitigate cost impacts through competitive purchasing processes to get the best price on fuel and a robust hedging program - which has provided $150 million in savings over the past five years - to reduce financial risk caused by market fluctuations.
Even with the best planning, there are several factors that are leading to higher costs. APS is serving more customers which has driven peak customer demand to increase by more than 20% since 2019 requiring significant new resource additions. By comparison, from 2019 to 2024 SRP’s peak demand grew by about 12% and TEP did not see any growth in that timeframe. Additionally, fuel and purchased power costs continue to rise, which is affecting APS and other energy companies across the nation.
- Arizona’s population continues to grow, especially in Maricopa County, which has experienced the highest annual population gains in the U.S. since 2016. In 2024, APS installed more than 32,000 new residential meters, the highest in more than a decade.
- As one way to meet growing demand, APS has had to procure more resources from other energy sources. Due to extreme weather conditions around the western United States, this excess energy can be more expensive to purchase. To best manage this challenge, we are signing more long-term Power Purchase Agreements, which secures the energy we need at guaranteed costs. These costs are part of the PSA, as well.
What is the impact on the average customer’s bill?
We’ve requested the PSA rate change to $0.016977 per kilowatt-hour (kWh), an increase of $0.003 per kWh. For a typical residential customer using 1,050 kWh in a month, that comes out to a monthly increase of $3.15. For example, if the current PSA charge were $10 a month, it will become $13.15.
The impact to business customers is as follows:
| Class | Business type | Usage in kWh | Impact in $/month |
|---|---|---|---|
| E-32 XS | Very small offices or commercial installations like billboards | 1,284 | $ 3.86 |
| E-32 S | Gas stations and similar | 11,240 | $ 33.72 |
| E-32 M | Smaller grocery stores | 63,478 | $ 190.44 |
| E-32 L | Big box retail stores and similar | 303,981 | $ 911.94 |
| E-32 XL | Large manufacturing or corporate campuses | 2,883,924 | $ 8,651.78 |
How the Power Supply Adjustment affects a customer’s bill each month depends on how much energy the customer uses. That’s because the adjustor is charged per used unit of energy. So, the increase on a customer’s bill could be lower or higher than that of a typical residential customer and may fluctuate monthly. The less energy the customer uses, the lower it will be.
What else impacts a bill amount?
There are many factors that impact how much a customer pays for electricity, including how much energy is used each month, plan type, and how many days are in a billing cycle. More information about customer bills is available at aps.com/newbill. We offer customers options to help them manage their bills – including programs like Budget Billing and tools, such as an online rate comparison, to ensure they’re on the most economical rate plan. If you’re looking for ways to manage energy costs, we’re here to help. We offer savings tips at aps.com/tips or you can call us to discuss ways to save at (602) 371-7171 (metro Phoenix) or (800) 253-9405 (other areas).
APS also offers a variety of programs for customers struggling to pay their bill, including one-time payments through Crisis Bill Assistance and APS CARE, as well as monthly energy discounts of 25% or 60% for those who qualify. Visit aps.com/assistance.
How can APS customers get additional information?
Customers can learn more at aps.com/adjustors. For information on how to manage energy costs, customers can visit aps.com/tips. Our care center advisors are here to help 24/7 at (602) 371-7171 (in metro Phoenix) or (800) 253-9405 (in other areas).
