TUCSON, Ariz. (KGUN) — Wednesday was the last public meeting asking for feedback on Tucson Electric Power's proposed rate increase. That meeting was in-person or over the phone at 10 a.m.
TEP is proposing a 12% increase, which would increase customers' bills by at least $14 a month. That would increase even more depending on a customer's power usage.
RELATED: Voters to judge TEP franchise renewal
TEP said one of the reasons for the increase is to recover costs for expanding its infrastructure and technology to serve Tucson's growing community. But not every customer is happy with that explanation, with one who said "It amazes to me that TEP is just getting rewarded, potentially, in this case for having an outdated business model."
Another customer opposing the increase said he will have less money for his barber, dryer cleaner, grocery store, and local coffee shop because he will have to spend more on his electric bill.
Why the increase?
TEP is requesting to update rates by late 2023 to recover the cost of energy resources, technology improvements, security upgrades, and operating costs and to "serve the increasing energy needs of our growing community."
Spokespeople from TEP have confirmed with KGUN 9 their profits from the past three years:
- 2020 - $191 million
- 2021 - $201 million
- 2022 - $217 million
TEP said net income and the related cash flow are used by credit rating agencies, lenders, investors and others to assess the creditworthiness of a company. They said a strong credit rating and ready access to capital support lower financing costs, which are ultimately passed along to customers through their rates.
What can you do?
There are no more public meetings to give feedback to the Arizona Corporation Commission, which said it will vote to approve or reject the proposition in late fall, likely at their December 5th meeting.
Voters will not have the opportunity to vote on this proposition, but can instead submit feedback to the AZCC, using its Utilities Public Comment Form.
Note the proposed rate increase is different than Proposition 412, which would only add about $1 to TEP customers' monthly bills. That will be on the ballot for voters, and the AZCC will have the final say.
Updated April 26th with new links to franchise renewal.
Correction: A previous version of this article referred to the Arizona Corporation Committee instead of the Arizona Corporation Commission.
RELATED ARTICLES:
Proposed Rate Hike
1. TEP customers continue to voice opposition to proposed rate increase
2. Two opportunities remain to give comments on TEP proposed rate hikes
Prop 412
1. Voters to judge TEP franchise renewal
2. New TEP agreement, customer fee on ballot in May special election
