Tucson Electric Power customers will enjoy winter bill savings over the next five years as a result of the acquisition of TEP’s parent company by Fortis Inc., the largest investor-owned gas and electric distribution utility company in Canada.
Under terms of Fortis’ August 2014 acquisition of UNS Energy Corporation, customers of TEP and sister company UniSource Energy Services, or UES, will receive bill credits totaling $30 million over five years. Savings totaling $10 million will be applied in year one, and $5 million will be applied annually over the next four years.
TEP will apply these credits to the monthly Customer Charge on bills issued from October through March.
The resulting savings will range from $1.07 per month for residential customers to more than $200 per month for the largest commercial and industrial customers.
Additional credits will be applied through temporary reductions in usage-based charges from October 2014 through March 2015; their impact will vary with consumption.
TEP and UES will remain headquartered in Tucson under local control with current management and staffing levels and no planned changes to existing operations.
Both companies will have enhanced financial strength and other benefits as part of Fortis, under the terms of a written order issued by the ACC.
Fortis will invest $220 million of new equity into UNS Energy’s utility subsidiaries, strengthening their balance sheets. Fortis also has pledged to maintain or expand TEP’s and UES’ charitable giving, philanthropic partnerships and income-qualifying assistance programs.
For more information, read TEP’s news release about the acquisition.