Downtown Tucson

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



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. $0.108 $19,467
TEP $0.115 $20,621
1,000 kW, 200,000 kWh    
  $/kWh Monthly Bill
US Avg. $0.133 $26,638
TEP $0.154 $30,712
1,000 kW, 650,000 kWh    
  $/kWh Monthly Bill
US Avg. $0.086 $55,703
TEP $0.082 $53,179
50,000 kW, 32.5 Million kWh    
  $/kWh Monthly Bill
US Avg. $0.080 $2,592,376
TEP ( ED Rider Applied) $0.059 $1,903,493
US Average Source: Edison Electric Institute Bills and Average Rates Report, Summer 2017.
TEP Rates provided by the pricing department.


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.

2015 59.436 0.045 80.217 0.126
2016 65.082 0.912 71.328 3.454
2017 65.119 0.923 70.558 3.767

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:



Camila Martins-Bekat

External Affairs

Tucson Electric Power
88 E Broadway Blvd
Tucson AZ 85701