Power lines in sunset

The Purchased Power and Fuel Adjustment Charge, or PPFAC, is a usage-based charge that reflects changes in the costs UES incurs to fuel its power plants and purchase energy for  electric customers. The charge includes only costs that are not already incorporated in base power supply rates. UES passes along these costs without any markup and earns no profit  from this charge.The following questions and answers offer more information about the PPFAC.

How will the PPFAC affect my electric bill?

The impact varies with energy usage and the current PPFAC rate, which is adjusted monthly based on a 12-month “rolling” average that reflects the costs of generating or  purchasing power for customers.

In May 2017, the Arizona Corporation Commission (ACC) voted to approve UES’ request to temporarily decrease the PPFAC from June 1 to October 31, 2017. The change is expected to reduce the average monthly summertime bill of a typical residential customer by $12.30. This credit will help to reduce the impact of increased home cooling expenses during hotter summer weather.

Where can I view the current PPFAC rate?

The current rate is updated monthly and listed in our electric rates section.

How does the PPFAC appear on my monthly bill?

The PPFAC appears on your bill under the heading “Power Supply Charges” along with your base power supply rate.

Do other utilities have charges like this?

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

Do all customers have to pay this charge?

Customers of UES’ Bright Arizona Community Solar program are not required to pay the PPFAC for solar power purchased through the program.

Will my bill be lower if I purchase solar power through the Bright Arizona Community Solar program?

Bright Arizona Community Solar is not designed to reduce customers’ electric bills. Rather, it offers an easy, affordable way to meet your electric needs with clean, renewable
energy. Participants in the Bright Arizona Community Solar program can purchase 150 kWh “blocks” of solar energy produced by local photovoltaic arrays. Each block will replace
the charges for an equivalent amount of traditional power at a cost that adds $3 apiece to participants’ monthly bills. Because solar power currently costs more than traditional
energy resources, the energy blocks available from the Bright Arizona Community Solar Program will add to your monthly electric bill. But the price you’ll pay for each block
will remain fixed for 20 years under ACC-approved program rules, so you may realize future savings if the cost of traditional energy resources increases. See the Bright Arizona
Community Solar page for more information.

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