New Tucson Electric Power Rates Support Investments in Safe, Reliable Service
The new rates, approved Aug. 8 by the Arizona Corporation Commission, are expected to increase the average monthly bills of residential customers with typical usage on TEP’s Basic pricing plan by about
The increase reflects nearly
New rates will help TEP serve the increasing energy needs of our growing community. Peak energy demands on TEP’s local grid have increased nearly 6 percent since 2019, the result of hotter summer weather and the addition of more than 14,000 customers.
“We’re doing everything possible to keep our service affordable as we build the resources we need to maintain top-tier reliability while working toward a cleaner energy future,” said Susan Gray, TEP’s President and CEO. “These new rates support investments that promote efficient, effective operations, helping us control our long-term costs and reduce our community’s carbon footprint.”
The new rates provide increased assistance to low-income customers through TEP’s Lifeline program. Monthly discounts for qualifying customers have been increased to
Building a Cleaner, Greener Grid
The new rates will help TEP achieve key long-term objectives, including adding new wind, solar and energy storage projects to help replace retiring coal-fired power plants. The largest of these projects is the 250-megawatt (MW) Oso Grande wind farm in southeast
The new rates also recover costs for a new substation and other infrastructure to connect the new Wilmot Energy Center south of
Controlling Costs, Serving Customers’ Needs
TEP has worked to limit rate increases by scrutinizing expenses and implementing new efficiencies. Thanks to those efforts, TEP’s operations and maintenance costs, on average, from 2018 through 2021 grew at a lower rate than average annual inflation during that same period.
Many of TEP’s investments are designed to reduce ongoing costs. For example, upgraded systems allow more efficient dispatch of power generation resources and support participation in the Western Energy Imbalance Market. That marketplace has expanded TEP’s access to clean energy and balancing resources and is expected to lead to lower long-term energy costs for customers.
For more details about the new rates, visit tep.com/2023-rates.
TEP provides safe, reliable electric service to more than 445,000 customers in
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Joseph Barrios
(520) 884-3725
jbarrios@tep.com
Source: Tucson Electric Power