Arizona Corporation Commission members voted unanimously to approve Tucson Electric Power Company’s proposal to reduce its Purchased Power and Fuel Adjustment Clause (PPFAC) surcharges.
The Commission also voted unanimously to approve TEP’s proposal to refund residential customers approximately $9.5 million in excess uncommitted Demand Side Management Surcharge (DSMS) funds.
In August 2023, as part of TEP’s rate case, the Commission adopted a Commissioner Nick Myers amendment requiring TEP to file a proposal to refund uncommitted excess DSMS funds as of December 31, 2023.
“I’m pleased to see that the Commission’s decision back in August will result in some bill relief for TEP customers this summer, when they need it the most,” commented Commissioner Myers.
The average monthly residential bill impact will be a refund of $5.63 in both June and July. For Small General Service customers, the average bill impact will be a refund of $19.55 in June and July.
In February, TEP filed a request to adjust its PPFAC which will result in a decrease in average residential bills of approximately $11.91 per month assuming average monthly usage of 767kWh.
Additionally, the Commission has directed TEP to apply unspent DSMS funds as credits to residential customers. TEP will apply credits over a two-month period, resulting in refunds of $5.63 to appear on customers’ June and July 2024 bills.