TEP proposing rate increase to the Arizona Corporation Commission

TUCSON, Ariz. (KGUN) — Tucson Electric Power is asking the Arizona Corporation Commission for a 14% base rate increase, a proposal that drew opposition from dozens of residents at a public hearing.

The increase would raise the average residential bill by up to $20 per month. TEP hopes the proposed increase will take effect in the fall, but the ACC will have the final say.

About 50 people gathered downtown to voice their concerns to the ACC, with a majority asking the commission to reject the proposal. Residents cited existing financial struggles and health concerns related to extreme heat.

"A lot of Tucsonans are going to have to prioritize their expenses this summer," Dana Orozco said.

Orozco, a Tucson resident, said she is worried about her grandparents being able to afford higher bills.

"My grandparents living on a fixed income, they’re in their nineties, and extreme heat is something that could be deadly for them," Orozco said.

Orozco said she opposes the rate increase.

"It would only bring profit to TEP and its shareholders," Orozco said.

TEP said the increase is needed later this year to recover $1.7 billion in recent investments made to the energy grid.

"It incorporates all of the improvements we’ve made to the grid. That includes replacing poles and wires, expanding our substations," Joe Barrios said.

Barrios, a TEP spokesman, said the 14% increase is less than the rate of inflation.

"That’s a comparison between 2021, the last time our rates changed, and today," Barrios explained.

TEP said they lowered rates in 2024 and 2025 to save customers money. Barrios also noted they offer programs to help with electricity bills.

"We do have that monthly discount program which as part of this rate application. If it’s approved, it would increase the resources that are available to low income customers," Barrios said.

If a customer qualifies, Barrios said they could receive discounts of up to 20% to 50%.

The ACC plans to hold another session for public comment before making a final decision.

This story was reported onair by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.