Transmission Cost Adjustor

What is the Transmission Cost Adjustor (TCA)?

The TCA is a monthly charge or credit that allows UES to recover a portion of transmission costs associated with serving retail electric customers. The TCA was first applied to bills in June 2014 and is reset annually to reflect updated cost calculations.

Typically, the Arizona Corporation Commission (ACC) will conduct an annual review of TCA rates, approving an increase or decrease that may appear on customers’ bills as a charge or a credit. This rate adjustment is based on UES’ investment in its transmission system and is calculated using a formula approved by the Federal Energy Regulatory Commission (FERC).

How will the TCA affect my bill?

For residential and other electric customers who do not pay a monthly billing demand charge, the TCA will appear as a credit of $0.000106 per kilowatt hour (kWh) . The impact on your bill will depend on the amount of energy you use. A residential customer with average monthly usage of 850 kWh would receive a bill credit of about 9 cents per month, on average, for the TCA.

For some commercial customers that pay a monthly billing demand charge, including those on UES’ Large General Service and Large Power Service rate plans, the TCA will appear as a credit of about 4 cents per kilowatt (kW) of demand. The bill impact will vary depending on customers’ demand charge. Customers with a 7 kW demand charge, for example, would receive a monthly TCA credit of about 28 cents.

How does the TCA appear on my monthly bill?

The TCA appears under the heading “Delivery Services.”