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The Power Supply Adjustment
The Power Supply Adjustment recovers what APS pays for fuel and purchased power, and 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. In 2025, the effective date was moved to March since the Arizona Corporation Commission (ACC) reviewed it during its February open meeting.
Does APS make any money (in any form) from the Power Supply Adjustment?
No, APS does not make any profit from fuel and purchased power. The adjustor strictly recovers only the costs APS has incurred to purchase fuel and power needed to reliably serve customers. It is known as a “pass-through” cost.
What is the impact on the average customer’s bill?
Starting with March 2025 bills, the PSA rate changed to $0.013977 per kilowatt-hour (kWh), an increase of $0.002 per kWh. For a typical residential customer using 1,050 kWh in a month, that comes out to a monthly increase of $2.10. For example, if the current PSA charge on your bill is $12.50 a month, it will become $14.60.
The impact to business customers is as follows:
| Class | Usage in kWh | Impact in $/month |
| E-32 XS | 1,284 | 2.57 |
| E-32 S | 11,240 | 22.48 |
| E-32 M | 63,478 | 126.96 |
| E-32 L | 303,981 | 607.96 |
|
E-34,35 X-Large, XHLF |
2,883,924 | 5,767.85 |
What can I do to reduce my bill?
How the Power Supply Adjustment affects a 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 could be lower or higher than that of a typical customer and may fluctuate monthly. The less energy the customer uses, the lower it will be.
Why did the PSA go up again when APS raised it substantially in 2023?
While the PSA balance has dropped by more than $250 million since its last rate change in March 2023, it is currently $290 million. Several factors impacted the rate at which we were able to pay down this balance, including delays with anticipated customer growth, interest expense, and price effects from the Texas pipeline freeze. We follow strict guidelines to make cost-effective purchases that provide customers with some of the most reliable power in the country. Again, these charges are passed through to customers without a markup.
Has the PSA ever gone down?
Yes. In Feb. 2020, a reduction to the PSA rate meant the average residential customers was paying $2 less every month.
Why are other utilities lowering their fuel adjustors, but APS is raising it?
We can’t speak to the specifics of other utilities since each fuel adjustor mechanism is structured differently. What we can tell you is our PSA balance is nearly $300 million. Since 2023, several factors have impacted that balance, including delays with anticipated customer growth, interest expenses, and price effects from the Texas pipeline freeze.
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 here.
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).
