Date: 4/7/2023

Description: Communication on the 5-phase approach CPS Energy is using to bring the cost of customer construction up-to-date with 2022 actual costs.

In December 2022, we began the execution of our 5-Phase plan to bring the cost of customer construction up to date. The initial adjustment for Phase 1 was effective December 1, 2022. Phase 2 was implemented on January 1, 2023. Each project is different and increase by project will vary. As a reminder, adjustments will apply only to CIAC invoices generated and delivered to customers after the update has been implemented.

We have continued to review CIAC and our cost for different types of projects. In this additional analysis we have found that our contract cost for connecting new homes has more than doubled since 2013. To bring these costs into alignment we will include these cost increases with the upcoming Phase 3 (July 2023), Phase 4 (January 2024) and Phase 5 (July 2024). The current estimated average cost for service and meter to connect new homes is about $750. This is expected to increase after full implementation in 2024 to about $1,250.

Date: 4/7/2023

Description: Three-Phase Pad Mount & Single-Phase Transformer Update.

Please know the CPS Energy team is sensitive to all the issues the global supply chain problem is causing our customers. Bringing projects to CPS Energy as early as possible and engaging your electrical engineer early can help you better plan for potential and expected delays with transformers and other materials.

Date: 2/27/2023

Description: Three-Phase Transformer Supply Chain Challenge.

CPS Energy is committed to keeping you informed of developments that impact our ability to meet our customers' needs. As you have heard from CPS Energy and in the news, the current supply chain landscape has severely impacted the supply of single-phase, pad mount transformers across the nation. This has resulted in significant delays in the completion of projects requiring these types of transformers.

We are now seeing supply chain challenges impacting three-phase, pad mount transformers and pad mounted switchgear associated with buried electrical utility infrastructure.  These transformers are used to power larger commercial and industrial projects and are used in much lower volumes than the single-phase transformers. Due to this increasing supply chain challenge, we want to communicate that projects requiring three-phase transformers are seeing delays in our ability to energize.  

Date: 10/1/2022

Description: Topics Covered in this newsletter are:

• Construction Portal
• Upcoming Changes in Construction Cost
• Inflation & Supply Chain Considerations
• Energy Conservation Levels
• CPS Energy Construction Volume

Date: 9/27/2022

Description: Communication on the 5-phase approach CPS Energy is using to bring the cost of customer construction up-to-date with 2022 actual costs.

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.

Date: 7/22/2022

Description: Update on material supply shortages and the potential for impacts on construction projects.

CPS Energy depends on a variety of goods and services to provide safe, reliable, affordable and resilient energy to our customers. We would like to make you aware of challenges we are currently facing.

CPS Energy is working diligently to minimize the impact of material supply shortages. Currently, lumber products, products that contain resin such as PVC electrical conduit and certain metals like those contained in meter sockets are becoming scarce. These material shortages are likely to impact CPS Energy’s support of outage restoration and new construction efforts.

Date: 7/22/2022

Description: Update on material supply shortage and the potential for impacts on construction projects.

CPS Energy is committed to providing our community safe, reliable and affordable service. We are also committed to keeping you informed of major developments, even when the message may be less than desirable. At this time, we continue to be impacted by nationwide supply chain challenges. We are currently experiencing a shortage natural gas service risers. We anticipate that we could be out of stock on one inch (1”) and three-quarters inch (3/4”) risers that could impact our ability to complete residential natural gas installations beginning Monday, June 13.

Date: 3/1/2022

Description: Topics Covered in this newsletter are:

• Year-End Review of 2021 Enhancements That Are Now Available
• Rate Request Approved by City Council
• Limitations on Construction Materials Due to COVID
• Top 5 Reasons for Electric Turndowns

Date: 1/12/2022

Description: Update on material supply shortages and the potential for impacts on construction projects.

CPS Energy Supply Chain team continues to work with our suppliers and vendors to maintain a steady flow of materials to meet our customers’ needs. This diligent work by our team has produced some improvement in sourcing construction material and has allowed our crews to continue to complete many jobs. However, the overall material supply situation remains challenging. Our suppliers and vendors continue working to replenish their stock as national materials levels continue to decline. As a result, we are asking our customers to allow for possible delays when planning your projects.