Phoenix, Ariz. —   Commissioner Kevin Thompson announced Wednesday, April 8, 2026 that the Arizona Corporation Commission voted to approve an approximate $18.50 temporary bill credit for UNS Electric (UNS) customers with an average 884 kWh consumption per month that will be effective from May 1, 2026, through December 31, 2026. The credit will be applied during the period of the year that includes peak summer usage, providing ratepayers a benefit when electricity bills are highest. 

The credit comes as a result of an adjustment to the Purchased Power and Fuel Adjustment Clause Credit (PPFAC), which utilities like UNS use to purchase things like fuel to operate generation facilities. The utility does not earn a profit on expenses that fall under the PPFAC.

“The Commission had to make a tough vote in 2023 to pay down significant fuel cost debt that had been allowed to build as a result of circumstances outside the utilities’ control,” said Commissioner Thompson. “As a result of the temporary surcharge, UNS was able to rapidly pay down the debt and save ratepayers money in the long run. Asking ratepayers to pay more in their monthly bills to pay down costs is never an easy task, but this solution removes the massive debt hanging over the heads of the ratepayers and provides additional bill relief when customers need it most.”

In October 2021, UNS began to experience a significant under-collection within the PPFAC bank balance that grew to $48 million. Much of this deficit was related to a spike in natural gas prices related to the COVID pandemic, extreme weather events like winter storm Uri,  and the war in the Ukraine. In May 2023, the Commission voted to approve a temporary increase in the surcharge in order to aggressively pay down the balance, which continued to accrue interest charges that are passed along to ratepayers. 

The temporary surcharge allowed UNS to eliminate the under-collected bank balance and the surcharge was removed in December 2025. The elimination of the surcharge last year resulted in a reduction to the average residential customer’s bill of approximately $20 per month. 

When the temporary surcharge was eliminated, the Company experienced a bank account balance that reached $5.6 million in mid-February of this year and continued to grow. With the adoption of the temporary credit and the elimination of the surcharge in December 2025, a typical residential customer will experience a $38 per month reduction in their bill this summer compared to last summer. 

For more information, contact Commissioner Thompson’s office at Thompson-Web@azcc.gov.