A solar array used by Tucson Electric Power to add renewable energy to the grid, August 2019
Tucson Electric Power is proposing a 14% rate increase for residential customers.
The announcement came hours after the Pima County Board of Supervisors approved a $3.6 billion data center, with promises not to affect customer rates.
If approved, the increase would add about $16 per month for households that would see the most impact during the summer months.
Joe Barrios, spokesperson with TEP says the cost increase is below the inflation rate of 2021 and that customers are paying for the cost of investments made into the energy grid.
“This would include everything from routine maintenance on equipment that we have in place or upgrades for example to the poles and wires and small transformers that you might see in your neighborhood, the type of equipment that actually provides service to your home,” Barrios said.
Despite the timing, Barrios says that the proposal is not related to the developing data center project but based on investments that were incurred last year.
In a press release, TEP stated that consumer prices have increased by 15% since 2021, therefore the utility company is seeking to recoup those costs.
An original notice of intent to file a rate case was submitted to the Arizona Corporation Commision back in May.
The official application was filed on Tuesday.
The ACC will determine the schedule for the rate application followed by a public review process.
If approved, the new rate would go into effect in September 2026.
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