Regulators seek comment on Tucson Electric's 12% rate-hike request

Customers of Tucson Electric Power Co. can voice their opinions about TEP’s request for new rates that would boost monthly home bills by nearly 12% at a series of public-comment meetings planned by state regulators.

Last June, TEP filed a rate request with the Arizona Corporation Commission that would increase the average monthly bills of typical residential customers on the company’s most basic rate plan by 11.7% percent, or $14.22, over current levels starting in September.

But the commission’s Utilities Division in initial filed testimony has recommended a smaller rate increase that would raise average home bills 6.7%, or $8.18, per month for the typical home customer on TEP’s most basic rate plan.

TEP, which serves about 400,000 customers in the Tucson metro area, says it needs the increase to recoup its costs for new infrastructure, including new renewable-energy plants, to cover higher fuel costs and to recover more fixed costs from usage-based rates as each customer uses less energy.

Under the company’s rate proposal, the basic monthly service charge customers pay regardless of usage would increase $2 for most residential rate plans, from $13 to $15 for the most popular basic rate.

The commission staff supports TEP’s proposed $2 increase to the basic monthly charge, but the Residential Utility Consumer Office, a state agency representing consumers in rate cases, has recommended an increase of just 31 cents.

Overall, RUCO recommends cutting TEP’s overall revenue increase nearly in half, from 21.4% to 12.1%.

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How to comment

The Corporation Commission will hold a series of public-comment meetings on TEP’s pending rate case, starting with a telephone-only session from 6 to 8 p.m. Tuesday, Feb. 21.

Other phone-in sessions will be held from 10 a.m. to noon on Monday, Feb. 27, and from 6 to 8 p.m. on Thursday, March 23.

Comments may be delivered during all of the meetings by calling 1-888-450-5996 and entering code 457395#. In-person meetings, with a phone-in option, will be held from 6 to 8 p.m. Wednesday, March 8; and from 10 to 11 a.m. Wednesday, March 29, at the commission’s Tucson office, 400 W. Congress, Room 222, followed by the start of public, evidentiary hearings scheduled daily into mid-April.

Comments may be submitted at any time online at tucne.ws/tepcomment.