The following is the opinion and analysis of the writer:
Terry Finefrock
I am writing to respond to Tucson Electric Power (TEP) CEO Susan Gray’s recent ADS Guest Opinion.
First, I want to recognize the many benefits that TEP has provided our community.
However, it is very clear that TEP and our Arizona Corporation Commission (ACC) need to reduce TEP’s costs and rates charged to the majority of ratepayers, residential, not just large users like Project Blue, to whom they provide much lower rates.
TEP is an investor-owned, for-profit company. The ACC provides captive customers to TEP, and stifles any form of competition, continuous improvement, cost reduction actions that competitive market for-profit companies must do to acquire and retain customers.
Around 2000, the ACC prohibited TEP from submitting rate increases until they paid back revenues they fraudulently collected from ratepayers. Since 2010, when that ban expired, TEP has chronically increased and compounded costs, rates and shareholder dividends. They currently have a request to increase rates by another 14%. These increases create huge burdens on the standard of living for a majority of our community members and local economy.
Although much lower cost solar-battery energy storage systems are available, and are reliable as indicated by TEP’s recent purchases, TEP continues to increase avoidable costs and rates to maximize their profits by purchasing more expensive natural gas powered plants that require decades to pay off, huge amounts of operating and maintenance expenses, vulnerable and expensive transmission and natural gas pipelines, exporting AZ ratepayer revenues to buy volatile higher price natural gas from suppliers that create methane emissions that are 80 times more heat-trapping than coal/CO2. Those emissions create higher temperatures, extreme weather events and damages, increased electricity usage, more aquifer water losses, and increased risk of obsolescence/stranded cost expenses for TEP and Tucson Water captive ratepayers.
Natural gas/methane emissions do not support TEP’s stated “clean energy” objectives.
TEP only generates about 14% of its total electric sales with solar.
TEP is currently proposing its 2026 future resource plans to the ACC.
To reduce costs, rates, and improve reliability, enhance the local economics that CEO Gray claims that TEP supports, TEP should voluntarily increase its generation mix to something like 50% Arizona fixed lower cost solar-BESS, 25% Nuclear and 25% natural gas by 2035.
It should use ratepayer revenues to purchase these system components from Arizona businesses when available.
Emphasis should be on partnering with all ratepayers to develop programs that increase Solar Generation-BESS within the distribution grid, at TEP substations, public service operations, hospitals, schools, the University of Arizona, etc.
As responsible and competent members of our community, TEP can do this without ACC mandates.
If TEP does not, the ACC should perform its duty to mandate that TEP optimize and reduce costs to the majority of its captive customers.
Please join me in requesting that TEP and the ACC collaborate with, not alienate, their captive customers.
Follow these steps to easily submit a letter to the editor or guest opinion to the Arizona Daily Star.
