Tucson Electric Power

Frequently Asked Questions
Guarantee Home Program

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The Guarantee program is a new home program utilizing the systems approach to home construction. The systems approach deals with health and safety, comfort, durability and energy efficiency. By utilizing the latest information on building science TEP has developed construction requirements that each home must meet to qualify. All homes are inspected by TEP at least three times during construction to verify these requirements have been met. The quality assurance of a TEP Guarantee Home can be found only through our building partners who proudly advertise the TEP Guarantee Home program. Click on "Find a Builder" to view a current list of builders.

TEP’s Guarantee Home program is the only program that provides the following:

• Multiple inspections on 100% of the homes — not just random inspections on a small percentage of homes
• The highest construction standards are required with TEP, not just recommended
• On qualifying homes, customer participation is automatic — no forms to fill out, no deadlines to meet, no month-to-month bill tracking
• The minimum term of TEP’s Guarantee is three years, with five years available through certain participating builders
• The lowest electric rate available with savings up to 35% on your entire electric bill (other energy efficient construction programs and/or guarantee programs do not qualify for the lower rate)

Rate 201 was designed specifically to provide customers with the lowest electric rate available. All Guarantee homes that have electric heat pumps and water heaters qualify for R201 but the electric rate applies to every kilowatt hour registered on your meter each month. This means you save not only on the cost to heat and cool your home, but you also save money every time you use the dryer, television, oven, range, etc. With three options available, customers can choose an option that works best for their lifestyle — with savings up to 35% annually on their entire electric bill. Rate R201 stays with the home forever. So even if you sell your home the new homeowner gets the benefit of a lower electric rate with R201. TEP’s rates are also frozen through 2008 for a long-term savings on your bill.

TEP will analyze each model plan using the energy rating of the construction materials used in building the home (frame or masonry, window values, wall/ceiling insulation values, etc.) to determine the cooling and heating load. These values are entered into a software program to calculate the annual cost for cooling and heating. The annual dollar amount is divided by 365 days to determine the average daily Guarantee dollar amounts.

TEP does not require you to set the thermostat at any particular temperature. We recommend 76º or higher during the summer and 72º or lower during the winter. However, you can set the thermostat where you are most comfortable.

Because our Guarantee is based upon the way the home is built (building shell) the number of people living in the home does not significantly affect our Guarantee. We only Guarantee the cooling and heating costs, not the base loads, such as water heating, refrigerator, TV, lights, etc. The number of people living in the home will affect the base costs, but not the heating and cooling costs.

The Guarantee dollar amounts are an annual average. Before TEP can determine if your home has exceeded the guaranteed amount, we must have 12 full months of consecutive billing history from the same customer of record. A report is available to our customers at the end of each Guarantee year. Please click here to contact us and we will be happy to send you a status report.

When you contact us for a status report on your home (see question above), if you’ve exceeded your Guarantee amounts, we will automatically issue a credit for the overage. This credit will show up on one of your next bills.

The Guarantee dollar costs are based on an annual kWh usage multiplied by the corresponding rate (cost per kWh). Base usage (anything not heating and cooling) must be calculated and then subtracted from the total kWh usage. The average base usage is determined by using the lowest actual kWh amount on the customer’s electric bill for Spring (March or April) and Fall (October or November). The average of the lowest Spring and Fall usage is multiplied by 12 to determine the annual base consumption. This amount is then subtracted from the total annual consumption to determine what the actual heating and cooling costs were for the year. See the example below:

EXAMPLE: Month Actual Monthly Consumption from Actual Monthly Statements(kWh) January 1,110 February 684 March 531 April 492 May 948 June 1,456 July 1,658 August 1,451 September 1,189 October 701 November 422 December 1,092 Total 11,734 kWh

Take the average of the March/April and October/November consumptions. This is the monthly Base (Non-heating and Cooling) Consumption. (492 kWh + 422 kWh) / 2 = 457 kWh Multiply the Base Consumption by 12 to obtain the Annual Base Consumption. 457 kWh X 12 = 5,484 kWh Obtain Annual Heating and Cooling Consumption by subtracting the Annual Base Consumption from Total Annual Consumption. 11,734 kWh - 5,484 kWh = 6,250 kWh Annual Heating and Cooling Cost is determined by applying the Average Current Residential Rate 201A to the Annual Heating and Cooling Consumption. 6,250 kWh X $0.073498/kWh = $459.36 Average Monthly Heating and Cooling Cost = $38.28 plus tax

The Guarantee dollar amounts are an annual average. When you receive your bill each month that bill represents the actual kWh usage and corresponding dollar amounts your home used during that billing cycle, including any heating or cooling. TEP does not separate out the heating and cooling costs on your bill.

The Guarantee is essentially a "structure" program. The program requirements refer to how each component of the structure (insulation, windows, etc.) relates to the others, including the size of the heat pump. Because we know exactly how the home was built and the size and efficiency of the heat pump we can easily estimate the heating and cooling costs. We have no control on the other electrical items a customer will put in the home or how a homeowner will operate these appliances. Each family is different. A family with one child may only do four loads of laundry a week, have a small refrigerator and run the dishwasher every other day. Another family may have three children, a large refrigerator and a freezer, do 15 loads of laundry a week and run the dishwasher twice a day. Their usage for household appliances will be much higher than those of a smaller family. We simply have no control over this type of usage — we only have control over how the building "shell" is constructed — which is why we can’t guarantee the entire bill.

Remember, TEP only guarantees the heating and cooling, not the entire bill. Also, the Guarantee dollar amounts are a yearly average, not an exact month-to-month cost. The bill you’ve received is for all the actual usage in your home — appliances as well as the heating and cooling equipment.

More than likely you didn’t do anything different, however the temperatures outside have probably changed. As the temperatures increase so does the time your heat pump operates. It may not be very noticeable to you, but your heat pump is designed to keep you comfortable and in doing so, the hours of operation will increase as outside temperatures rise. During mild weather your bills will be lower because there is very little need to heat or cool your home. But as we head towards summer and the weather gets hotter your bills will start to reflect the usage of your cooling system. Most bills peak in July or August because those are the hottest months in Tucson. During these months, your heat pump will operate more hours in the day to maintain the comfort in the home. Although not as dramatic, your bills will also increase a little during the cooler winter months when there is a need to heat your home.

Most people believe that being gone from their home for an extended time period will reduce their electric bill noticeably. The truth is your home doesn’t know you’re gone. Your refrigerator will cycle on and off to maintain the interior temperature. The same is true for the water heater. If you have a pool, the pump will still come on daily. Unless you turn your heat pump off at the thermostat, it will continue to run to maintain the home at the selected temperature setting. Even if you turn the temperature up, the heat pump will still run. The fact that you will not be running the dishwasher, doing laundry or watching TV while you are gone will not affect the bill much. So, if you’re going to be gone for awhile remember your heat pump. Decide if turning it off completely will affect items in your home. Will high temperatures inside your home kill your plants, or fish in your aquarium? How about your furniture or artwork? Are you leaving a pet inside? Inside temperatures may reach 90º or higher (depending on the time of year) if you turn the heat pump off completely. Consider all factors before deciding to turn off your heat pump. It may be wiser to just leave things alone and enjoy your vacation

The heart of the Guarantee program is the heat pump, and like any other type of mechanical equipment, maintenance is important. When a person purchases a new car, the car comes with a specific warranty time period. To keep that warranty valid, the owner is required to provide routine maintenance on the vehicle. Just like purchasing a car, TEP has a limited time period for their program with a recommendation to the homeowner to provide routine maintenance on the heat pump. Unfortunately, just like some new car buyers, many people just don’t provide this maintenance. The end result in both cases is reduced longevity and efficiency of the equipment. That is why we must limit the term of the Guarantee.

Unless you alter the structure in some way, add base load such as a pool or spa, or unless you do not provide routine maintenance on the heat pump, the answer is "No." Your home should continue to perform as it always has.

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Savings based on current rate structure.