TEP's Value Proposition
Economic Development
Low energy costs are only part of the equation. Factor in TEP's consistently high rankings for power reliability, nationally recognized leadership in renewables, robust energy-efficiency programs and pervasive customer focus, and you have an electric utility company that complements the many other benefits of locating in Tucson.
Discounts for New, Expanding Companies
TEP's new Economic Development Rate (EDR) is designed to attract new employers and encourage existing businesses to expand their operations. Electric bill discounts are available for up to five years for new or existing businesses that meet certain minimum load and job creation requirements outlined by Arizona’s Quality Jobs or Qualified Facility tax credits.
For example, a business that expands operations into existing, vacant facilities and meets certain requirements could receive a 30 percent discount on a portion of their monthly electric bill in the first year of the discount.
New and existing Customers taking service under this rate must provide written documentation to qualify for the discount. EDR availability is limited to a total customer load of 200 MW.
Here’s an example of how a company opening new facilities in TEP's service territory can save with the EDR. In this scenario, a manufacturer on our Large Power Service Time-of-Use (TILPST) rate has a peak annual demand of 3 megawatts (MW), average usage of 1,620 megawatt hours (MWh), and a load factor of 75 percent.
| Year | Normal Rate | Rate with EDR | Cumulative Annual Savings |
| 1 | $ 133,675 | $ 106,940 | $ 320,819 |
| 2 | $ 133,675 | $ 113,624 | $ 561,434 |
| 3 | $ 133,675 | $ 120,307 | $ 721,843 |
| 4 | $ 133,675 | $ 126,991 | $ 802,048 |
| 5 | $ 133,675 | $ 130,333 | $ 842,151 |
Rates
Our rates are consistently lower than the national average and businesses of all kinds can profit from these savings. Energy-intensive businesses, such as data centers, especially benefit from TEP’s low energy costs and high reliability. The chart below shows examples of demand and usage, with corresponding rates and monthly bills.
| 500 kW, 180,000 kWh | ||
|---|---|---|
| $/kWh | Monthly Bill | |
| US Avg. | $0.107 | $19,287 |
| TEP | $0.098 | $17,715 |
| 1,000 kW, 650,000 kWh | ||
|---|---|---|
| $/kWh | Monthly Bill | |
| US Avg. | $0.086 | $55,814 |
| TEP | $0.076 | $49,664 |
| 50,000 kW, 32.5 Million kWh | ||
|---|---|---|
| $/kWh | Monthly Bill | |
| US Avg. | $0.079 | $2,579,292 |
| TEP | $0.071 | $2,313.310 |
Reliability
An electric utility’s service reliability, capacity and infrastructure are critical considerations for any company in making a facility-location decision. TEP's system is robust, reliable and resilient. In fact, our reliability has earned TEP repeated high rankings among electric utilities surveyed by the Edison Electric Institute (EEI), and we are committed to maintaining that high standard of service through forward-looking investments in system resources.
| Year | SAIDI | SAIFI | CAIDI | MAIFI |
|---|---|---|---|---|
| 2014 | 57.126 | 0.714 | 80.051 | 3.098 |
| 2015 | 59.436 | 0.045 | 80.217 | 0.126 |
| 2016 | 65.082 | 0.912 | 71.328 | 3.454 |
Leaders in Renewable Energy
Recognized by the Solar Electric Power Association as the Investor Owned Utility of the Year in 2012, and one of three finalists for the same honor in 2013, TEP continues to harness the power of the sun for the benefit of homes and business throughout the Tucson area.
TEP partnered with the University of Arizona on Phase I of the Solar Zone, one of the largest multi-technology solar evaluation sites in the U.S. (Photo courtesy University of Arizona Tech Park: techparks.arizona.edu)
Contact
Larry Lucero
Senior Director
Government Relations
llucero@tep.com
Tucson Electric Power
HQE504
88 E Broadway Blvd
Tucson AZ 85701
Camila Martins-Bekat
External Affairs
CMartins-Bekat@tep.com
Tucson Electric Power
HQE504
88 E Broadway Blvd
Tucson AZ 85701
Regional Amenities
The Convergence of Business and Pleasure
Start with 350 days of sunshine a year. Add the kinds of recreational and cultural amenities you would expect to enjoy only on a vacation. And situate all of this in a scenic and unpretentious metropolitan area of a million people. That’s the Tucson lifestyle. That could be your new lifestyle.
With more than 40 courses in the area, Tucson has earned an international reputation as a golfing paradise.
Geographic Advantages
The Crossroads of Prosperity
Whether importing or exporting, you can benefit from Tucson's proximity to Mexican suppliers and markets, not to mention Tucson's geographic positioning along major trucking and rail transportation corridors.
Economic Development Partners
Visit these websites for additional information on how you can thrive in Tucson. You've got the power.
Trade Connections
Enroll in Bien, a free online service that connects you to supply-chain and distribution networks in Arizona, Mexico and Canada, and presents your goods or services to an ever-growing base of potential customers.
Visit connectbien.com for details.