TUCSON, Ariz. (KGUN) — Tucson Electric Power (TEP) filed a petition with the Arizona Corporation Commission to raise electricity rates by approximately 14%, citing rising operational costs and inflation.
If approved, the increase would mean an average of $16 more per month for typical residential customers — or nearly $200 more per year.
The proposed hike comes on the heels of a 9.55% rate increase approved in 2023, despite TEP requesting a 14% hike at that time.
“The rates that our customers pay today are based on costs that we incurred in 2021,” said TEP spokesperson Joseph Barrios. “We face inflation and have to pay more for the equipment, for the bucket trucks, for the poles and the wires — all of the things that serve our customers. The costs of those items have increased.”
TEP says the added revenue would support infrastructure upgrades and help maintain service reliability across its grid.
However, critics say the increase would place an undue burden on low- and moderate-income residents who are already struggling with recent hikes.
“Two hundred dollars extra a year!” said Lee Ziesche with the Tucson chapter of the Democratic Socialists of America. “And you know we have talked to thousands of Tucsonans about their electric bills over the last two years, and people are still struggling to pay TEP’s 2023 rate hike.”
Barrios acknowledged that not all rate increases are automatically approved.
“They’re not always approved. And that’s part of the public process,” he said. “Because customers can weigh in, other parties can weigh in.”
The Arizona Corporation Commission, which oversees utility rate changes in the state, will take public and stakeholder input before making any decision.
That decision could come in one to two years, according to ACC estimates.
In the meantime, some critics have floated a more radical solution: city ownership of the electric utility, a move they say could lower costs in the long term.
“It would actually save us hundreds of dollars in the first few years and over $1,000 a year on our bills long term,” Ziesche contended, referencing a proposal for public power.
TEP maintains that its current model ensures reliable service and helps fund renewable energy initiatives across southern Arizona.
The utility also encourages customers to participate in the public comment process as the Arizona Corporation Commission begins its review.
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Eddie Celaya is a multimedia journalist at KGUN 9. Born in Tucson and raised in the Phoenix area, Eddie is a life-long Arizonan and graduate of the University of Arizona who loves the desert and mountains and hates the cold. Previously, Eddie worked in print media at the Arizona Daily Star. Share your story ideas with Eddie at edward.celaya@kgun9.com, or by connecting on Facebook or Instagram.
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