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TEP Requests Rate Review to Support Safe, Resilient, Reliable Service
TEP Requests Rate Review to Support Safe, Resilient, Reliable Service

Associated Press

time4 days ago

  • Business
  • Associated Press

TEP Requests Rate Review to Support Safe, Resilient, Reliable Service

TUCSON, Ariz.--(BUSINESS WIRE)--Jun 17, 2025-- Tucson Electric Power (TEP) has requested regulatory review of new, higher rates that would take effect in September 2026. TEP's proposal would increase typical residential bills by about 14 percent. That would add about $16 per month, on average, for households with median usage of 638 kilowatt-hours (kWh) per month. The month by month impact would be higher in the summer and lower in the winter, and customers who use more energy would see higher impacts. The proposed rates would recover increased costs and necessary investments since 2021, the last year reflected in current rates. TEP has invested about $1.7 billion since then to maintain reliability, improve resiliency and serve customers' expanding energy needs. Key investments: Inflation Impact Consumer prices have increased 15 percent since 2021, impacting all aspects of our business, including labor, services, materials and equipment. TEP has sought to mitigate that impact by leveraging strong relationships with suppliers and working more efficiently whenever possible. 'Keeping our commitment to safe, reliable service has required us to continue reinforcing and modernizing our infrastructure to meet our customers' needs, even as we have been confronted by escalating prices, rising interest rates, strained supply chains and other economic challenges,' Gray said. More Support for Our Most Vulnerable Customers We've proposed updating TEP's Lifeline program, which provides a flat discount to qualifying residential customers, with a tiered structure that offers much larger discounts to the most vulnerable customers. Customers with incomes between 101 percent and 200 percent of the federal poverty level would receive a discount of about 20 percent, or about $25 per month on average. Customers with lower household incomes would receive a 50 percent discount, or about $63 on average. More Gradual Changes TEP's proposed rates include an Annual Rate Adjustment Mechanism that would allow more gradual rate changes in the future. This formula rate mechanism would allow for the elimination of certain other surcharges on TEP's bills. All costs would remain subject to ACC oversight to ensure that only necessary, cost-effective investments and prudently incurred expenses are recovered. Next Steps Today's filing begins an extensive public review process. The Arizona Corporation Commission will set hearing dates and provide other opportunities for public input prior to a decision. More detailed information on our review request, including a video, answers to frequently asked questions, and an infographic of our investments, is available on our website at TEP provides safe, reliable electric service to about 452,000 customers in Southern Arizona. For more information, visit TEP and its parent company, UNS Energy, are subsidiaries of Fortis Inc., a leader in the North American regulated electric and gas utility industry. For more information visit View source version on CONTACT: News Media Contact: Joseph Barrios (520) 884-3725 [email protected] KEYWORD: UNITED STATES NORTH AMERICA ARIZONA INDUSTRY KEYWORD: COAL ALTERNATIVE ENERGY ENERGY OTHER ENERGY UTILITIES SOURCE: Tucson Electric Power Copyright Business Wire 2025. PUB: 06/17/2025 07:30 PM/DISC: 06/17/2025 07:28 PM

TEP Requests Rate Review to Support Safe, Resilient, Reliable Service
TEP Requests Rate Review to Support Safe, Resilient, Reliable Service

Yahoo

time4 days ago

  • Business
  • Yahoo

TEP Requests Rate Review to Support Safe, Resilient, Reliable Service

At a Glance: Tucson Electric Power has proposed new rates that we project would increase residential customer bills by about 14 percent when they take effect. That would be less than the level of inflation since 2021, the year used to set our current rates. The proposed rates are needed to recover investments in grid upgrades and new energy resources. They also reflect the impact of inflation on the cost of maintaining TEP's top-tier reliability in the face of more extreme weather. TEP can help customers reduce the impact of the proposed rates through energy efficiency programs, rebates and advice available on An expanded low-income assistance program would provide more support to residents who need more help. A Word from President and CEO Susan Gray: "We know our customers count on us every day for the energy that powers their lives. They also need us to keep our bills as low as possible, which is why we work so hard to control costs and why our proposal is focused on increasing support for our most vulnerable customers. Our proposed rates reflect those efforts as well as cost-effective investments in a modern, resilient grid and a secure energy supply to ensure reliable, affordable service around the clock, all year long." TUCSON, Ariz., June 17, 2025--(BUSINESS WIRE)--Tucson Electric Power (TEP) has requested regulatory review of new, higher rates that would take effect in September 2026. TEP's proposal would increase typical residential bills by about 14 percent. That would add about $16 per month, on average, for households with median usage of 638 kilowatt-hours (kWh) per month. The month by month impact would be higher in the summer and lower in the winter, and customers who use more energy would see higher impacts. The proposed rates would recover increased costs and necessary investments since 2021, the last year reflected in current rates. TEP has invested about $1.7 billion since then to maintain reliability, improve resiliency and serve customers' expanding energy needs. Key investments: Energy grid upgrades and technology improvements: TEP operates a large, complex system that serves more than 452,000 customers and spans 1,155 square miles. Maintaining reliability requires ongoing maintenance and upgrades to approximately 5,100 miles of transmission and distribution lines, more than 4,300 miles of underground distribution lines, more than 107,000 poles and transmission structures, and more than 120 substations. Our proposed rates reflect more than $900 million invested since 2021 in critical infrastructure, communications equipment and other technologies that have helped TEP achieve top-tier reliability metrics for 12 years straight. Reliability reserve: TEP's new Roadrunner Reserve battery energy storage system will begin commercial operations this month, helping us provide reliable, affordable energy during peak usage periods. This 200-megawatt, 800 megawatt-hour system in southeast Tucson will allow expanded use of clean, affordable solar energy while helping to protect customers from fuel price volatility, keeping rates more stable over time. The proposed rates would recover about $350 million invested in this critical new energy resource. A more secure system. The proposed rates reflect recent investments in new IT systems and upgrades that support smart grid operations and TEP's expanded participation in regional energy markets. They also support safer, more secure facilities to protect against increasing physical- and cyber-security threats. Inflation Impact Consumer prices have increased 15 percent since 2021, impacting all aspects of our business, including labor, services, materials and equipment. TEP has sought to mitigate that impact by leveraging strong relationships with suppliers and working more efficiently whenever possible. "Keeping our commitment to safe, reliable service has required us to continue reinforcing and modernizing our infrastructure to meet our customers' needs, even as we have been confronted by escalating prices, rising interest rates, strained supply chains and other economic challenges," Gray said. More Support for Our Most Vulnerable Customers We've proposed updating TEP's Lifeline program, which provides a flat discount to qualifying residential customers, with a tiered structure that offers much larger discounts to the most vulnerable customers. Customers with incomes between 101 percent and 200 percent of the federal poverty level would receive a discount of about 20 percent, or about $25 per month on average. Customers with lower household incomes would receive a 50 percent discount, or about $63 on average. More Gradual Changes TEP's proposed rates include an Annual Rate Adjustment Mechanism that would allow more gradual rate changes in the future. This formula rate mechanism would allow for the elimination of certain other surcharges on TEP's bills. All costs would remain subject to ACC oversight to ensure that only necessary, cost-effective investments and prudently incurred expenses are recovered. Next Steps Today's filing begins an extensive public review process. The Arizona Corporation Commission will set hearing dates and provide other opportunities for public input prior to a decision. More detailed information on our review request, including a video, answers to frequently asked questions, and an infographic of our investments, is available on our website at TEP provides safe, reliable electric service to about 452,000 customers in Southern Arizona. For more information, visit TEP and its parent company, UNS Energy, are subsidiaries of Fortis Inc., a leader in the North American regulated electric and gas utility industry. For more information visit View source version on Contacts News Media Contact:Joseph Barrios(520) 884-3725jbarrios@

Tucson voters weigh half-cent sales tax hike for public safety, community programs
Tucson voters weigh half-cent sales tax hike for public safety, community programs

Yahoo

time12-03-2025

  • Business
  • Yahoo

Tucson voters weigh half-cent sales tax hike for public safety, community programs

It's election day in Tucson and voters are set to weigh in on a half-cent sales tax increase that would raise some $800 million over 10 years to fund public safety and community investment. Polls opened a 6 a.m. and are set to close at 7 p.m. in the all-mail special election. As of Monday, roughly 72,000 of the 305,000 ballots had already been returned. Proposition 414, the Safe & Vibrant City ballot measure asked Tucsonans to vote on raising the city's sales tax from 2.6% to 3.1%. City officials tout the measure as an effort to fund critical services following a statewide change in income tax policy that decreased the money the city receives from the state. Of the annual revenue projected to be brought in by the tax: $52 million would go toward police and fire departments $14 million would go to affordable housing programs, shelters, and courts $13.4 million would go to community and justice-related programs Critics argued that with roughly two-thirds of the tax dollars going to public safety instead of housing and community investment, the allocations of tax dollars do not reflect the values of Tucsonans. Supporters said the $800 million over ten years would help pay for critical services like housing, police and fire, which have become more expensive to run. One supporter of the measure is former state Sen. Kristen Engel. The Tucson Democrat lost against U.S Congressman Juan Ciscomani, R-Ariz., in the 6th congressional district race in November. 'Folks, we need to get off the fence and face the reality that passing Prop. 414 is necessary if we want the level of police, fire and shelter services we expect and which will maintain our reputation as a top destination to live, work, retire and recreate,' Engel posted on X. Critics argued that with roughly two-thirds of the tax dollars going to public safety, instead of housing and community investment, the allocations of tax dollars do not reflect the values of Tucsonans. The Southern Arizona Leadership Council, a coalition of business leaders and executives, opposed the measure. Although the group said it supports properly funding public safety, it underscored the concern that the measure 'perpetuates the structural budget challenges that have left our chartered priorities underfunded," the group said in a press release. Interest groups spent over $300,000 on campaign in support of and against Proposition 414, according to filings with Tucson and the Arizona Secretary of State. Yes on Prop 414: Safe and Vibrant City, a group backing the measure, reported spending $151,351 from Jan. 1 to Feb. 22. Among the large contributions to Yes on Prop 414 was a $10,000 boost from Fletcher McCusker, the CEO of UAVenture Capital and the chair of Rio Nuevo, a special taxing district focused on urban development. Other contributors included city Councilmember Kevin Dahl and Tucson Electric Power executive Cynthia Garcia, among others., The Tucson Metro Chamber PAC which opposed the measure, spent $179,970 on ballot measure expenditures including yard signs, attorney fees, fliers, social media management, and ads, among other expenditures. Some contributors included the Tucson Association of Realtors which contributed $25,000 and the Pima County Automobile Dealers Association which contributed $50,000. Reach the reporter at The Republic's coverage of southern Arizona is funded, in part, with a grant from Report for America. Support Arizona news coverage with a tax-deductible donation at This article originally appeared on Arizona Republic: Proposition 414: Tucson voters weigh fate of half-cent sales tax hike

Tucson voters weigh half-cent sale tax hike for public safety, community programs
Tucson voters weigh half-cent sale tax hike for public safety, community programs

Yahoo

time11-03-2025

  • Business
  • Yahoo

Tucson voters weigh half-cent sale tax hike for public safety, community programs

It's election day in Tucson and voters are set to weigh in on a half-cent sales tax increase that would raise some $800 million over 10 years to fund public safety and community investment. Polls opened a 6 a.m. and are set to close at 7 p.m. in the all-mail special election. As of Monday, roughly 72,000 of the 305,000 ballots had already been returned. Proposition 414, the Safe & Vibrant City ballot measure asked Tucsonans to vote on raising the city's sales tax from 2.6% to 3.1%. City officials tout the measure as an effort to fund critical services following a statewide change in income tax policy that decreased the money the city receives from the state. Of the annual revenue projected to be brought in by the tax: $52 million would go toward police and fire departments $14 million would go to affordable housing programs, shelters, and courts $13.4 million would go to community and justice-related programs Critics argued that with roughly two-thirds of the tax dollars going to public safety instead of housing and community investment, the allocations of tax dollars do not reflect the values of Tucsonans. Supporters said say the $800 million over ten years would help pay for critical services like housing, police and fire, which have become more expensive to run. One supporter of the measure is former state Sen. Kristen Engel. The Tucson Democrat lost against U.S Congressman Juan Ciscomani, R-Ariz., in the 6th congressional district race in November. 'Folks, we need to get off the fence and face the reality that passing Prop. 414 is necessary if we want the level of police, fire and shelter services we expect and which will maintain our reputation as a top destination to live, work, retire and recreate,' Engel posted on X. Critics argued that with roughly two-thirds of the tax dollars going to public safety, instead of housing and community investment, the allocations of tax dollars do not reflect the values of Tucsonans. The Southern Arizona Leadership Council, a coalition of business leaders and executives, opposed the measure. Although the group said it supports properly funding public safety, it underscored the concern that the measure 'perpetuates the structural budget challenges that have left our chartered priorities underfunded," the group said in a press release. Interest groups spent over $300,000 on campaign in support of and against Proposition 414, according to filings with the Tucson and the Arizona Secretary of State. Yes on Prop 414: Safe and Vibrant City, a group backing the measure, reported spending $151,351 from Jan. 1 to Feb. 22. Among the large contributions to Yes on Prop 414 was a $10,000 boost from Fletcher McCusker, the CEO of UAVenture Capital and the chair of Rio Nuevo, a special taxing district focused on urban development. Other contributors included city Councilmember Kevin Dahl and Tucson Electric Power executive Cynthia Garcia, among others. The Tucson Metro Chamber PAC which opposed the measure, spent $179,970 on ballot measure expenditures including yard signs, attorney fees, fliers, social media management, and ads, among other expenditures. Some contributors included the Tucson Association of Realtors which contributed $25,000 and the Pima County Automobile Dealers Association which contributed $50,000. Reach the reporter at The Republic's coverage of southern Arizona is funded, in part, with a grant from Report for America. Support Arizona news coverage with a tax-deductible donation at This article originally appeared on Arizona Republic: Proposition 414: Tucson voters weigh fate of half-cent sale tax hike

Group plans protest at Tucson Electric after utilities propose new nuclear plant
Group plans protest at Tucson Electric after utilities propose new nuclear plant

Yahoo

time10-03-2025

  • Politics
  • Yahoo

Group plans protest at Tucson Electric after utilities propose new nuclear plant

With a new nuclear reactor in Arizona now a possibility, a grassroots group is planning a protest in Tucson on the 14th anniversary of the start of the Fukushima accident in Japan. The Nuclear Resister, which bills itself as an educational group opposed to nuclear power and weapons, said it plans to hold a curbside press conference and demonstration at 12:15 p.m. Tuesday in front of the downtown headquarters of Tucson Electric Power near Broadway Road and Sixth Avenue. The group advocates for a "nuclear-free future" with nonviolent protests and other actions. TEP, along with metro-Phoenix utilities Arizona Public Service and Salt River Project, announced that they are looking into the feasibility of building or operating a new reactor in Arizona to help meet the state's growing energy needs. The utilities have not announced a location or timetable for such a project and say they aren't yet officially proposing a new reactor to complement the Palo Verde Generating Station in the West Valley, but they are jointly examining whether the project might be doable. APS, which operates Palo Verde, will spearhead the effort. Smaller modular nuclear reactors are among the possibilities, perhaps to be located on the site of an abandoned coal plant. The five members of the utility-regulating Arizona Corporation Commission, all Republicans, favor nuclear power as part of a diversified energy mix for the state. Members of the Nuclear Resister plan to garnish the Tucson demonstration with signs reading, "Tell TEP No New Nuclear Power in Arizona' and 'Nuclear Power — No Thanks!' The group also reports on protests such as one held March 5 against nuclear weapons outside a Raytheon factory in Tucson. Self-described local nuclear experts Russell Lowes and Jack Cohen-Joppa will speak on why they consider nuclear power to be too expensive, too slow to build and too risky, and a Tucson musician, Ted Warmbrand, will sing anti-nuclear folk songs. In 1979, Tucson resident Lowes was the principal author of an economic analysis that, he said, correctly predicted the Palo Verde plant would end up costing consumers much more than what its owners projected. Lowes plans to discuss the projected costs and questionable reliability of new nuclear plants. Cohen-Joppa, co-coordinator since 1980 of the Nuclear Resister, will discuss the potentially harmful impacts on front-line communities around uranium mines, nuclear fuel-processing plants, existing nuclear reactors and radioactive waste dumps. He also plans to rebut what he considers unproven claims being advanced by proponents of new nuclear reactors. The Fukushima disaster, triggered by a massive earthquake and tsunami off the Japanese coast north of Tokyo, left an estimated 20,000 or so people dead, according to the Associated Press. Reach the writer at This article originally appeared on Arizona Republic: Group that advocates for nuclear-free future sets up Tucson protest

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