Customer Construction Cost: Contribution in Aid of Construction (CIAC)

 
 

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What is the Customer Construction Cost also referred to as Contribution in Aid of Construction (CIAC)?

Customers pay a portion of the cost to build electric or gas infrastructure for new service or to upgrade their current service as outlined in our CPS Energy Line Extension Policy.  In short, Customer Construction Cost, also known as Contribution in Aid of Construction or CIAC, is the cost that new customers’ pay for CPS Energy to construct new assets to connect new customers.  This is a one-time cost that customers pay when connecting new load to the existing utility infrastructure.

PHASE 5: Customer Construction Costs were reviewed and updated during a 5 phased implementation process designed to bring costs into alignment with our actual costs beginning December 1, 2022. The last phase will be completed July 1, 2024. Prior to this update, the basis for our labor and associated cost for construction projects had not been increased since 2012.

We know that costs increases are an unwelcome but necessary part of doing business. Yearly reviews will be performed as we move orward to ensure we continue to do all we can to manage cost while still meeting needs of our growing community. If you have any questions about our customer construction costs, please send an email to [email protected].