UPDATE: 2:39 p.m.
The average monthly residential bill impact will be a refund of $5.63 in June and July, according to Nicole Garcia, public information officer for the Arizona Corporation Commission.
For small general service customers, the average bill impact will be a refund of $19.55 in June and July, Garcia said via email.
TEP said the $9.5M had been collecting since the pandemic. The money comes from the Demand Side Management Charge (DSM), which funds energy efficiency programs, like installing a newer, more efficient A/C unit. Not enough people have been using the programs, however, resulting in an excess; and because these funds can't be used for anything else, the surcharge has built in mechanisms to return any unused money. The DSM surcharge isn't going away, though, as TEP continues seeking funding for energy efficient programs.
Additionally, TEP customers can also expect to save around $11.91 on each bill, starting June 1, 2024. That's after the Arizona Corporation Commission modified the Purchased Power and Fuel Adjustment Charge—separate from the DSM—which TEP uses to account for change in energy costs. For example, when economic pressure forces the cost of natural gas up, this surcharge provides leeway for TEP's operating costs. This charge is usually reset each year by the ACC.
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Tucson Electric Power says it plans to refund customers $9.5 million dollars in over-collected fees.
According to a decision filed by TEP with the Arizona Corporation Commission, the refund period could span 1-month, 2-months, or even 12-months.
Under this proposal, TEP would apply credits to residential customers based on usage, measured by kilowatt-hours. Non-residential customers would receive their refund based on a percentage of the bill.
Here's a look at the proposed refund schedules, and how that would impact both residents and non-residents:
The Arizona Corporation Commission will be holding a meeting on Tuesday, May 7. It is set to begin at 9 a.m. at the Arizona Corporate Commission in Phoenix, but there are other ways people can make their voices heard:
- Dial (877)-309-3457 and enter passcode 801972877## - phone lines are available up to 30 minutes before the meeting.
- Video conferencing is available using a WebEx link.
- Members of the public can watch a livestream of the meeting here: http://www.azcc.gov/live [azcc.gov]
Correction: A previous version of this article incorrectly stated TEP was hosting the meeting on Tuesday, May 7.
