TEP Seeks Rate Increase Approval

Tucson Electric Power (TEP) has submitted a proposal to the Arizona Corporation Commission (ACC) requesting a 14% increase to its base rates. The proposed increase, if approved, would raise the average residential customer’s bill by as much as $20 per month.

Public Hearing Draws Opposition

A public hearing was held downtown, attracting approximately 50 residents who expressed concerns about the proposed rate hike. The majority of attendees urged the ACC to reject TEP’s proposal, citing financial hardships and health risks associated with Arizona’s extreme heat.

Resident Concerns Highlighted

Dana Orozco, a Tucson resident, voiced worries about the impact on seniors with fixed incomes. “My grandparents living on a fixed income, they’re in their nineties, and extreme heat is something that could be deadly for them,” Orozco stated. She believes the increase would primarily benefit TEP and its shareholders.

TEP Justifies Increase with Grid Investments

TEP officials say the rate increase is necessary to recover $1.7 billion invested in improvements to the energy grid. Joe Barrios, a TEP spokesman, explained that the investments include replacing aging infrastructure like poles and wires, and expanding substations.

Inflation and Customer Programs

Barrios also pointed out that the 14% increase is lower than the current rate of inflation when comparing 2021, the last time rates were adjusted, to today. TEP previously lowered rates in 2024 and 2025 to provide customer savings.

TEP offers assistance programs for customers struggling with bills. If approved, the rate application would increase resources available to low-income customers, potentially providing discounts of 20% to 50% for those who qualify.

Next Steps for ACC Decision

The ACC plans to hold another public comment session before making a final decision on TEP’s rate increase proposal. The company hopes the increase will take effect this fall, but the ACC has the ultimate authority.