CPS Energy has mostly held flat the customers’ cost for their construction improvements and additions to the electric and natural gas systems, also known as Contribution in Aid of Construction or CIAC (“Kay-ak”). The basis of our labor and associated cost has not increased since about 2012. These economic facts and the need to ensure that customers are appropriately investing in that infrastructure have created a need for CPS Energy to adjust their cost.
To that end, CPS Energy will be implementing a 5-phase approach to bring the cost of customer construction up-to-date with 2022 actual costs. These increases will apply only to CIAC invoices generated and delivered to customers after the update has been implemented.
We will be implementing updates effective December 1, 2022. We anticipate the increase from this first step of the phased approach to average about 10-12% of your construction cost.
The first increase will also include the Service & Meter connections to homesites. These smaller projects average about $650 per site and follow a different process to help expedite their connections. Due to this different process, these projects will have a different overall implementation timeline as shown in the chart on the right in Figure 2.
Because each project is different and requires different materials and labor needs, increases will vary by project. See Figure 2 for an example of the estimated increases and timeframe of future increases.