Tucson Electric Power (TEP) is looking to raise utility rates to cover the cost of new wind and solar energy resources, grid improvements, technology and security upgrades.
TEP’s request, filed last week with the Arizona Corporation Commission (ACC), would increase the average monthly bills of typical residential customers by 11.7 percent, or $14.22, over current levels starting in September 2023. That change would vary with usage, and customers will be able to mitigate the impact through energy efficiency and Time-of-Use pricing plans that offer lower rates during off-peak periods.
Peak energy demand on TEP’s local energy grid has increased by 5.7 percent since 2019, driven by record heat events and the addition of more than 14,000 new homes and businesses to its customer base over the past three years. The cost of fuel and wholesale energy also has increased significantly in recent years, driving up expenses that, like O&M costs, are passed along to customers.