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New Rates for a Cleaner, Greener Grid

Tucson Electric Power’s updated rates will support development of a smarter, greener grid while increasing assistance for low-income customers.

The new rates, effective as of Jan. 1, 2021, are expected to increase the average monthly bills of residential customers with typical usage on TEP’s Basic pricing plan by approximately $4.93 compared to 2020 bills. The impact will vary with usage, and customers who use more than the average of 807 kilowatt-hours (kWh) per month should expect a larger increase.

The increase will help cover the cost of approximately $1.2 billion invested since June 2015 to maintain and improve service while transitioning to a cleaner, more flexible and resilient energy portfolio. We are expanding our energy resources, updating our grid and working to provide more than 70 percent of our power from renewable resources as part of a cleaner energy portfolio that will reduce carbon emissions 80 percent by 2035.

TEP’s new rates also expand bill-payment assistance for limited-income customers. Monthly discounts for participants in our Lifeline program will increase from $15 to $18 and will be available to families with household income up to 200 percent of the federal poverty level – an increase from the previous 150 percent cap. That change was approved in December 2020 by the ACC.

The ACC voted to approve TEP’s new rates on Dec. 22, 2020. The request was originally filed in April 2019 to recover costs the company has incurred since July 2015. The new rates are projected to increase TEP’s revenues by about 3 percent, representing an annualized increase of 0.8 percent – less than the rate of inflation – since TEP’s rates were last increased in February 2017.

More Reliable, Sustainable Energy

Rate Updates

Additional Changes for Larger Businesses

Economic Development

Estimated Bill Impact

Tucson Electric Power: Payment Assistance

Payment Assistance

There are a variety of programs and plans that can offer you assistance if you’re having trouble paying your electric bill.
Tucson Electric Power: 2020 IRP Infographic

2020 IRP Infographic

Here is a visual breakdown of our plan to provide more than 70% of our power from wind and solar resources and reduce carbon emissions 80%.