Anyone else seeing this massive fuel adjustment on APS bills for April? I'm in Phoenix and my commercial client just got hit with a $3,200 spike on what should have been a $1,800 bill. The fuel adjustment clause shows 4.2 cents per kWh when it was only 1.8 cents last month. Called APS and they claim natural gas prices jumped but I'm not buying it. Has anyone else challenged these fuel adjustments successfully? Looking at tariff Schedule E-32 and the calculation methodology seems off.
APS fuel adjustment clause - crazy spike in April
Sarah, we're seeing similar issues out here in California with PG&E. Their Energy Resource Recovery Account charges have been all over the map this year. I've found success requesting the actual fuel cost data that feeds into their formula. Under CPUC rules they have to provide supporting documentation. You might want to file a formal complaint with the Arizona Corporation Commission if APS won't cooperate. The fuel adjustment should track actual commodity costs, not be some arbitrary number.
I deal with Oncor here in Dallas and their fuel factors can swing wildly month to month. The key is getting the supporting workpapers that show how they calculated the adjustment. Sarah, request APS provide their Schedule 4 Fuel Factor Calculation worksheet. If the math doesn't add up to published natural gas indices, you've got grounds for a refund. I recovered $8,400 for a client last year using this approach.
This is exactly why I always tell my clients to track fuel adjustments monthly. Xcel Energy here in Colorado tried to slip through a "miscalculation correction" that would have cost one client an extra $2,100. The fuel clause in their tariff clearly states adjustments must be based on rolling 12-month averages, not spot prices. Document everything and don't let them use vague explanations about "market volatility" without backing it up with actual data.
Milwaukee here - We Energies pulls this same garbage. Their fuel cost recovery mechanism is supposed to be transparent but good luck getting straight answers. Sarah, if you're dealing with a large commercial account, threaten to involve their key account manager. Sometimes corporate pressure works better than regulatory complaints. Also check if APS filed the proper tariff amendments with the commission before implementing that huge increase.
Update: Filed complaint with ACC and got results! Turns out APS was using the wrong natural gas index in their fuel cost calculation. They were pulling Henry Hub prices instead of the Permian Basin index specified in their tariff. Getting full refund of $3,200 plus interest. Thanks everyone for the advice about demanding the supporting documentation. Sometimes these utilities hope nobody will notice their "mistakes".
Excellent work Sarah! This is exactly why we need to stay vigilant on these fuel adjustments. The utilities bank on customers just paying without question. I'm definitely going to start requesting the gas index documentation on all my PG&E reviews. That Henry Hub vs regional index issue could be happening elsewhere too.
Great outcome! I'm adding this to my audit checklist - verify the correct commodity indices are being used in fuel calculations. AEP here in Ohio uses multiple gas trading points depending on the generating station, so there's lots of room for "errors" like this. Sarah, would you mind sharing the ACC complaint number? Might be useful reference for similar cases.