What is the Demand Side Management (DSM) charge?

The DSM charge is a monthly, usage-based charge established by the Arizona Corporation Commission (ACC) to pay for cost-effective
energy efficiency programs.

These ACC-approved programs can help residential and commercial customers use less energy and save on their monthly utility bills. Energy efficiency benefits all customers by
reducing the company’s long-term need for new energy resources.

The energy savings achieved through these programs help UES work toward the goals established by the Arizona Corporation Commission.

Arizona’s Energy Efficiency Standard calls on electric utilities to achieve cumulative energy savings of 22 percent by 2020. Natural gas utilities are required to achieve annual
energy savings of at least 6 percent by 2020

How does this affect my bill?

Electric Customers
Since August 2014, the DSM rate has been set at $0.0015 per kilowatt hour (kWh). For a residential customer with average monthly usage of 855 kWh, this will result in a charge
of about $1.28.

Natural Gas Customers
This charge currently is not appearing on natural gas customers’ bills because the DSM rate has been set at zero since August 2016.

Where does the DSM charge appear on my monthly bill?

DSM charges appear on your bill under the heading “Surcharges.”

Do other utilities have charges like this?

Yes. Similar components are included in the rates of UES’ sister company, Tucson Electric Power, as well as in rates charged by Arizona Public Service, Southwest Gas and many
other utilities.

What kinds of programs are available?

Click here to learn more about home and commercial energy efficiency programs for natural gas and electric customers.

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