Transitioning Pinal Customers from APS to ED-3
Frequently Asked Questions
September 2008
What is the nature of the transaction?
APS and Electric District No. 3 (ED-3) have reached an agreement that calls for the sale of APS’ distribution facilities adjacent to and inside of ED-3 boundaries from APS to ED-3. APS currently serves about 4,000 customers in the area of western Pinal County also served by ED-3. Under this agreement, which must be approved by the Arizona Corporation Commission, these customers would be served by ED-3.
What is ED-3?
ED-3 is an electrical district as formed under ARS 48 and is similar to a municipality. ED-3 has provided electric service to irrigation customers since 1961 and to area residents and businesses since 2001. ED-3’s district boundaries encompass about 233 square miles and include the city of Maricopa and the town of Stanfield. ED-3, which operates two offices in the area, currently serves more than 17,750 customers in the area. More information about ED-3 can be found at www.ed-3.org.
Why has APS agreed to sell its distribution assets to ED-3?
Currently, APS customers in the area are served by power lines that are connected to and feed through ED-3’s electric system. This unique arrangement has resulted in occasional confusion regarding which utility is responsible for repairs, delays in restoring service, increased costs for both utilities, and a potential risk to the safety of employees of both organizations and the public.
This agreement will result in a single electric utility with the responsibility of maintaining critical infrastructure and ensuring reliable service in the area.
Will reliability to the area be improved if the sale is approved?
APS believes reliability in the area will improve. By eliminating duplicative and confusing obligations regarding the area’s electric systems, ED-3 will be better positioned to plan, finance, maintain, operate and construct a cohesive electric system in the designated service area. Additionally, the need for both utilities to respond to certain emergency and service issues will be eliminated, thus increasing response times and improving operational efficiencies.
What are the boundaries of the proposed ED-3 service area?
The general area of the service territory is south of the Gila River Indian Community, north of the Tohono Indian Community, east of the Pinal-Maricopa County line and west of the city of Casa Grande.
Will APS continue to serve customers in the vicinity surrounding the ED-3 service area?
Yes. APS will continue to serve customers that reside in areas that are adjacent to but outside of the proposed ED-3 service territory.
When will the transition become effective?
The application first must be approved by the ACC, which has jurisdiction in the matter. APS filed its application with the ACC on August 11, 2008. As soon as APS has a potential date for completion of the transaction, it will be proactive in communicating with its customers.
How will APS customers impacted by the sale be notified?
APS is committed to an extensive public outreach effort to address any questions our customers may have, and we will work closely with ED-3 to ensure a smooth, seamless transition. APS’ outreach efforts will include direct mail, newspaper advertisements and at least one public meeting. In addition, a Web site, aps.com/ed-3, has been established to provide more information. Customers with additional questions can call (520) 421-8455.
How will the monthly bills of APS customers moving to ED-3 be impacted?
The standard rates for the two utilities are comparable. The average APS monthly residential bill based on 1,541 kilowatt hours of use is $181.72. ED-3, meanwhile, offers different rates for customers who receive electric service via underground and overhead distribution lines. Based on 1,541 kilowatt hours of usage the average ED-3 residential bill is $188.81 for underground service and $171.67 for overhead service.
If impacted by the transaction, will I need to take any action to become a customer of ED-3?
No. Records of APS customers impacted by the sale will be transitioned to ED-3, and the status of accounts with ED-3 will remain as they were with APS.
What actions will APS take with those customers impacted once the sale takes effect?
APS personnel will record a final read of the customers’ meters, then forward a final bill and refund any deposit the company has collected. ED-3 will then start billing from that point forward.
Will my meter be switched?
No. The sale of APS distribution facilities within ED-3’s boundaries includes all APS equipment, including meters.
Will APS customers who utilize time of use rates have that option with ED-3?
Yes. ED-3 offers a time of use program that offers substantially lower rates for energy used during the off-peak hours of 9 p.m. to 9 a.m. during the week and all day on Saturday and Sunday.
Do ED-3 customers have the ability to pay their monthly bill electronically?
Yes. More information can be found about ED-3’s electronic bill payment plan and its other programs by visiting www.ed-3.org.
What if I have further questions?
This is a unique transaction, and APS will provide new information as it becomes available. In the meantime, customers can visit www.aps.com/ed3 or call (520) 421-8455.
