Tucson Electric Power (TEP) is seeking a nearly 12 percent rate increase for its customers in 2021. The proposed increase would help the company comply with Arizona’s renewable energy mandate and offset costs from the coronavirus pandemic.
TEP is the sole electric provider in Tucson, Arizona, and serves more than 431,000 customers in the region. The utility has proposed a rate increase of 11.6 percent to its customers, which would take effect in 2021. The rate increase is intended to help the utility cover costs associated with complying with Arizona’s renewable energy mandate and to offset losses due to the economic downturn caused by the coronavirus pandemic.
Currently, Arizona requires utilities to generate 15 percent of their energy from renewable sources by 2025. TEP is currently at 11 percent, which means they need to increase their renewable energy sources to meet the mandate. The rate increase would help the company fund renewable energy projects and other efforts to meet the requirement.
The proposed rate increase would also help the company offset losses due to the pandemic. TEP has seen a drop in demand for electricity due to businesses and individuals cutting back on energy usage. This drop in demand has resulted in decreased revenues for the company. The rate increase would help TEP make up for some of these losses.
TEP customers will have the opportunity to voice their opinions on the proposed rate increase at a public hearing on October 22, 2020. The hearing will be held online and customers can submit their comments online or by mail. The Arizona Corporation Commission will consider all comments before making a decision on the rate increase.
TEP customers should be aware of the proposed rate increase and take the time to submit their comments. The rate increase could have a significant impact on their monthly electric bills, so customers should make sure their opinions are heard.
For those looking to reduce their energy usage and lower their electric bills, TEP offers several energy efficiency programs. The company offers free energy audits, discounts on energy-efficient appliances and lighting, and rebates on energy-efficient HVAC systems. Customers can also take advantage of the company’s Time-of-Use program, which offers lower rates for customers who shift their energy usage to off-peak hours.
TEP is also helping customers manage the financial impact of the coronavirus pandemic. The company is offering payment extensions and deferred payment plans for customers who are facing financial hardship. Customers can contact TEP for more information on these programs.
TEP’s proposed rate increase is still subject to approval from the Arizona Corporation Commission. Customers can submit their comments on the proposed rate increase at the public hearing on October 22, 2020. In the meantime, customers can take advantage of TEP’s energy efficiency programs and coronavirus relief programs to reduce their energy usage and manage the financial impacts of the pandemic.
Overall, TEP’s proposed rate increase is intended to help the company meet the state’s renewable energy mandate and offset losses due to the coronavirus pandemic. Customers should make sure to submit their comments at the public hearing on October 22, 2020, and take advantage of the company’s energy efficiency and coronavirus relief programs.
