REST Surcharge

What is the current REST surcharge?

The Arizona Corporation Commission has approved a REST surcharge of less than two cents per kilowatt-hour (kWh) for 2018. The commission also approved caps that limit the amount customers pay each month for this usage-based fee.

For residential customers, the monthly cap is $4.90. For small commercial customers, the monthly cap is $60. For medium-size commercial customers, the monthly cap is $190. For large commercial customers, the monthly cap is $350.

How is the REST surcharge calculated for customers with renewable power systems?

REST surcharges are based on billed electric usage for all customers who installed renewable power systems before 2012.

Customers who received incentives and installed renewable power systems in 2012 and thereafter pay a REST surcharge equal to the average paid by members of their customer class. Customers who received no incentives and installed renewable power systems interconnected to UES' electric system in February 2013 and thereafter also pay REST surcharges equal to the customer class average as listed here.

 

Customer Group Average Monthly Rate
Residential  $4.27
Small Commercial  $15.59
Medium Commercial  $154.20
Large Commercial  $350
Industrial $9,925.69
Lighting $1.76

Why does UES need extra money to pay for renewable energy?

Our electric rates do not cover the full cost of renewable energy, which remains more expensive than conventional power despite recent price reductions. Arizona also has a relative scarcity of hydroelectric, geothermal, wind and other renewable resources compared to many other states. Solar energy is abundant, of course, but solar power systems carry a significant up-front cost.

Can customers purchase renewable energy directly from UES?

Yes. The Bright Arizona Community Solar Program offers UES electric customers an easy and affordable way to satisfy some or all of their electric needs with locally generated solar power. Customers can purchase 150 kWh “blocks” of solar power, replacing an equivalent amount of conventionally generated power at a rate that adds about $3 apiece to their monthly bill. For more information, click here.