KINGMAN – Electric customers of UniSource Energy Services will see a $12 reduction in their monthly bill this summer thanks to reduced fuel and purchased power prices.
The Purchased Power and Fuel Adjustment Charge, or PPFAC, is a “hedging mechanism” that can increase or decrease a customer’s monthly electric bills depending on the cost of natural gas used to generate power, explained Joe Barrios, spokesman for UES.
The Arizona Corporation Commission on May 9 approved Unisource’s request to temporarily lower the purchased power charge used to calculate monthly bills starting June 1.
It’s expected to lower the average monthly bill of a typical residential customer by $12.30.
“We’re passing along lower fuel costs to our electric customers just in time to help reduce the impact of home cooling expenses during the summer,” David Hutchens, president and chief executive officer of Unisource Energy Services, said in a prepared statement.
The PPFAC is a usage-based charge that reflects changes in the cost the utility company incurs to fuel its power plants and purchase energy for its customers. These costs are passed along without any markup.
The rate, which appears on bills under “power supply charges,” is currently a credit of four-tenths of one cent for a kilowatt-hour (kWh), and will be increased to a credit of 1.6 cents per kilowatt hour.
The higher credit passes along savings from reduced natural gas and purchased power costs.
“It’s more like giving back in the form of a credit,” Barrios said.
While Unisource customers will be paying lower power supply costs, their bills may be higher overall through increased usage, he noted.