On June 1, 2011, UniSource Energy Services began passing along lower wholesale energy costs through the Purchased Power and Fuel Adjustment Charge (PPFAC) on customers' bills. The change is expected to reduce residential electric bills by an annualized average of about 9 percent.
The following questions and answers offer more information about this change.
The energy costs update pertains to UniSource Energy Services' electric customers.
The Purchased Power and Fuel Adjustment Charge passes along the cost of energy that UES buys to deliver to customers. The charge is adjusted each year by the Arizona Corporation Commission (ACC) to reflect changing market prices, and it does not include any profit for UES. If market energy costs are lower than the levels built into other areas of UES rates, the PPFAC appears as a credit instead of a charge.
The PPFAC changed from a charge of $0.000768 per kilowatt-hour (kWh) to a credit of $0.008788 per kWh to reflect lower wholesale power prices. That change reduced energy costs for UES customers by about a penny per kWh. The credit is applied to all current usage in bills issued June 1 or later, even if some of that usage occurred prior to June 1.
The impact varies with usage, but a typical residential customer is expected to save $8.35 per month, or about $100 over the course of a year. Business customers paying small commercial rates are expected to realize savings of about 4 percent as a result of the change.