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

 

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.

UNDER REVIEW: Customer Construction Costs are being reviewed and updated.  The basis for our labor and associated cost for construction projects has not been increased since 2012.  We will begin implementing a 5-step process to bring these costs into alignment with our 2022 costs beginning December 1, 2022.  In general, we anticipate the first phase of the increase to average about 10-12% for your construction costs.  

Please read the 2022 Review of Customer Construction Costs for more details on this plan.  Further information will be posted in the Helpful Links section of this page as it becomes available. In addition, we will be holding two WebEx sessions for customers to learn more and ask questions.  If you would like to join one of these video conference sessions, please send an email to [email protected] with the date of the session you would like to join to get meeting login information.