Summer is synonymous with higher energy bills, but Tucson Electric Power customers are catching a bit of a break thanks to a reduction in surcharges.
The Arizona Corporation Commission approved surcharge changes that will take effect June 1, resulting in average bill reductions of about $10 per month, according to a TEP news release.
While the ACC agreed to increase TEP’s REST surcharge, a Renewable Energy Standard Tariff, by about $2 per month, that will be offset by a $12 decrease to the Purchased Power and Fuel Adjustment Charge, which is updated annually to allow TEP to recover changing energy costs.
TEP requested to up the REST surcharge to better align collections with actual clean energy expenses.
The reduction to the PPFAC was made possible after the charge was increased last year to recover higher energy costs from previous years, but TEP officials told the ACC on Tuesday that the increase was no longer necessary and those costs had been recovered.
The news was lauded and unanimously approved by the commissioners.
“TEP’s PPFAC is working as it should,” said Commissioner Nick Myers. “Our adjustment to the PPFAC rate last year to address a substantial under collected balance and the lower forecasted cost of procuring fuel and power have resulted in this significant lower rate for customers.”
In addition to the $10 reduction, for the months of June and July, TEP customers will see nearly $6 more per month knocked off of their bills as part of a temporary adjustment to a Demand Side Management surcharge, as the utility works to return unspent and uncommitted energy efficiency funds.
TEP noted that despite the reductions, increased energy usage during Tucson’s hot summer months will still result in higher bills, overall.
The utility offers a Budget Billing program, designed to level out seasonal swings in monthly bills, allowing customers to pay the same amount year-round. To learn more about the program, alternate pricing plans, discounted rates and emergency payment assistance, visit tep.com/payment-assistance.
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