Regulators OK small Tucson Electric Power, UNS Electric fee increases

State regulators on Tuesday approved an increase in fees for Tucson Electric Power Co. customers that will cost the typical residential customer an average of 45 cents per month more starting July 1.

The change, which the Arizona Corporation Commission adopted at an open meeting in Phoenix on Tuesday, allows the utility to collect $13.2 million for fixed costs it says it can’t recover through regular rates.

Reset annually, the so-called "lost fixed cost recovery mechanism"” is intended to reimburse TEP for estimated sales losses from energy-efficiency measures and customer-owned distributed generation like rooftop solar systems.

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In April, the Corporation Commission reset a separate TEP surcharge that reimburses the utility for some fuel and purchased-power costs, reducing the average TEP residential bill by about $4 starting in May.

Also on Tuesday, the Corporation Commission approved a similar request for an increase in the lost fixed cost recovery charge by UNS Electric, a sister company to TEP that serves Mohave and Santa Cruz counties.

The UNS request would increase bills for its typical residential ratepayer by an average 29 cents monthly, according to regulatory filings.