Tucson Electric home bills could go up by $18 a month under new proposal

Home customers of Tucson Electric Power would see their bills rise an average of nearly $18 per month — more than the company has requested — as they would bear the brunt of increased costs under the latest proposal in TEP's pending rate case.

People are also reading… TEP filed for new rates with the Arizona Corporation Commission in June 2022, requesting more than $150 million in new revenues to start recovering its costs for some $1.9 billion in system additions and improvements. Starting Sept. 1, the proposed rates would increase the monthly bill for more than 300,000 TEP residential customers on its most popular, basic rate plan by $17.88 monthly, or 14.8%, based on yearlong average monthly usage of 803 kilowatt hours.

She said her plan provides the greatest relief to customer classes paying the highest subsidies under present rates. TEP has said it supports efforts to reduce residential rate subsidies but remains neutral on the allocation of costs and rate increases across customer classes, leaving that up to regulators to decide.

TEP’s amended proposal would increase its annual revenues, which were $1.12 billion in 2021, by about $111 million or 9.89%, compared with the net increase of $136 million the company had initially sought. Judge Martin recommended a 9.4% return on equity for TEP, up from an effective rate of 9.15% approved in the last rate case.

“That is the primary issue that we remain concerned about,” said Cynthia Zwick, director of the Residential Utility Consumer Office, adding that RUCO is still studying the recommended rate order and working out how to respond. While the judge’s recommended order is not binding on the full Corporation Commission, which may adopt or change the provisions, such orders tend to carry a lot of weight with regulators.“We are we are hopeful that there's still an opportunity there to impact the final decision, as we go forward in the process,” Zwick said, adding that much will depend on the level of return on equity the Corporation Commission approves for TEP.

Helping coal areasThe judge declined to prompt TEP to use ratepayer funding to help communities facing economic hardship as coal-fired power plants such as TEP’s Springerville Generating Station are closed down.

Source: Energy Industry News (energyindustrynews.net)

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