TEP customers benefitted from winter bill savings over five years as a result of the acquisition of TEP’s parent company by Fortis Inc., which owns utilities that serve more than 3 million customers across Canada and in the United States and the Caribbean.
Under terms of Fortis’ August 2014 acquisition of UNS Energy Corporation, customers of TEP and sister company UniSource Energy Services (UES) received bill credits totaling $30 million. Savings totaling $10 million were applied in year one, and $5 million were applied annually over the next four years.
These customer credits continued through Feburary 2019.
TEP applied these credits to the monthly Customer Charge on bills during winter months. The resulting savings ranged from $1.07 per month for residential customers to more than $200 per month for the largest commercial and industrial customers. Additional credits were applied from October 2014 through March 2015 through temporary reductions in usage-based charges, which vary with consumption.
|Average credit applied
to monthly Purchase
Power and Fuel
|October 2014 — March 2015||$1.07||$0.56||$1.63|
|October 2015 — March 2016||$1.07||n/a||$1.07|
|October 2016 — March 2017||$1.07||n/a||$1.07|
|October 2017 — March 2018||$1.07||n/a||$1.07|
|October 2018 — February 2019||$1.07||n/a||$1.07|
* This amount is based on average monthly usage of 700 kilowatt hours from October 1, 2014 to March 31, 2015.
These bill credits represent the only direct impact on rates that will result from the acquisition. TEP will not seek to recover any transaction-related costs in future rates. The Arizona Corporation Commission will continue to set the company rates based on the costs incurred to provide safe, reliable service.