New Rates for a Smarter, Greener Grid
Tucson Electric Power’s updated rates will support development of a smarter, greener grid while increasing assistance for low-income customers.
The new rates, effective as of Jan. 1, 2021, are expected to increase the average monthly bills of residential customers with typical usage on TEP’s Basic pricing plan by approximately $5.20 compared to 2020 bills. The impact will vary with usage, and customers who use more than the average of 809 kilowatt-hours (kWh) per month should expect a larger increase.
The increase will help cover the cost of approximately $1.2 billion invested since June 2015 to maintain and improve service while transitioning to a cleaner, more flexible and resilient energy portfolio. We are expanding our energy resources, updating our grid and working to provide more than 70 percent of our power from renewable resources as part of a cleaner energy portfolio that will reduce carbon emissions 80 percent by 2035.
TEP’s new rates also expand bill-payment assistance for limited-income customers. Monthly discounts for participants in our Lifeline program will increase from $15 to $18 and will be available to families with household income up to 200 percent of the federal poverty level – an increase from the previous 150 percent cap that was approved in December 2020 by the Arizona Corporation Commission (ACC).
The ACC voted to approve TEP’s new rates on Dec. 22, 2020. The request was originally filed in April 2019 to recover costs the company has incurred since July 2015. The new rates are projected to increase TEP’s revenues by about 3 percent, representing an annualized increase of 0.8 percent – less than the rate of inflation – since TEP’s rates were last increased in February 2017.