One
difference: Unlike South‑west Gas Corp., a distributor
of natural gas which buys the commodity
from another entity, APS generates its own electricity, said
Betty Dayyo, company spokeswoman.
The
public utility produces electricity from both natural gas‑
and coal‑fired plants, as well as one nuclear plant. APS
owns 29 percent of the Palo Verde Nuclear Generating Station
and a portion of the coal‑fueled Four Corners Power Plant
near Farmington, New Mexico. The electricity provider also owns
interests in nine other power plants located in Arizona.
APS rates
are regulated by the state Corporation Commission. The company
looks at the historical costs of transmission and generation of
electricity for a test year to calculate its proposed
rates.
Ten
out of 13 charges consumers see on a typical residential bill
reflect costs over and above the rate the company charges for
electricity (See bill).
A
typical APS residential Basic Service Charge is $6.12 a month,
which represents company overhead costs such as the expense of
administrative staff, Dayyo said.
The
Delivery Service Charge of $27.33 per month represents the cost
of building and operating equipment APS uses to deliver electricity
to a home. Line poles, transformers, and substations are included
in this charge.
According
to Dayyo, APS recently had to expand its infrastructure substantially
to keep up with growth in the Valley.
An
Environmental Benefits Surcharge recovers the cost of operating
corporation commission‑approved energy efficiency and renewable
energy programs. A Competition Rules Compliance Charge recoups
costs the company expends implementing its competition rules as
a regulated utility.
A
System Benefits Charge covers the company’s cost of providing
low‑income assistance, customer education and environmental
programs. The Power Supply Adjustment fee compensates the company
for fluctuations in the cost of electricity it is not otherwise
able to recover.
Metering
fee covers the cost of renting and servicing the meter, while
the Meter Reading charge is self‑explanatory. The Billing
fee covers the cost of calculating the statement. Transmission
and Ancillary Services involves the cost of high‑voltage
wires that carry electricity from the power plant to the substation
and then to the home.
The
actual cost of electricity can vary, and APS has a variety of
rate plans. Some charge the consumer different peak and off‑peak
rates.
For
example, a Time Advantage Plan charges one rate during the day
and another at night and on weekends. Standard plans charge the
same rate all the time, except summer rates are higher. Most plans
charge higher rates May through October.
Consumers
can find the most economical plan for them by visiting APS.com
and entering their account number. The program reviews the consumer’s
bills for the past 12 months to calculate a preferred plan.
Reach
the reporter at kathleen@thedesertadvocate.com
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