What is the Purchased Power and Fuel Adjustment Charge (PPFAC)?
The PPFAC is a usage-based credit or charge that reflects changes in the costs TEP incurs to fuel its power plants and purchase energy for customers. The charge includes only costs that are not already incorporated in summer or winter base power supply rates. TEP passes these costs along without any markup and earns no profit from this charge.
How will the PPFAC affect my bill?
A charge of $0.001979, or less than one cent, per kilowatt hour (kWh) will be applied to bills beginning on May 1, 2018. For a residential customer with average monthly usage of about 800 kWh, this will result in a monthly charge of about $3.15.
How does the PPFAC appear on my monthly bill?
The PPFAC appears on your bill under the heading “Power Supply Charges” along with your summer or winter base power supply rate.
Do other utilities have charges like this?
Yes. Similar components are included in the electric rates of TEP’s sister company, UniSource Energy Services, 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 TEP’s GoSolar Shares 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 TEP GoSolar Shares program?
The GoSolar Shares program 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 GoSolar Shares program can purchase 150 kWh “shares” of solar energy produced by local photovoltaic arrays. Each share will replace the charges for an equivalent amount of traditional power at a cost that adds $1.50 apiece to participants’ monthly bills. Because solar power currently costs more than traditional energy resources, the energy shares available from the GoSolar Shares program will add to your monthly electric bill. But the price you’ll pay for each share 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 TEP GoSolar Shares page for more information.