TEP offers tips to keep bills manageable during hot weather

As Tucson sweated through record high temperatures, Tucson Electric Power customers relying on our local energy grid to stay cool set a new peak demand record earlier this week.

Demand on TEP’s local energy grid peaked at 2,502 megawatts (MW) between 5 and 6 p.m. on Wednesday, Aug. 6. That new record held, despite a close call on Thursday, when customers used 2,501 MW, again between 5 and 6 p.m.  These peaks were driven by record high temperatures on each day, 111 and 112 degrees respectively, during a sweltering stretch of hot, dry weather.

2025 has been a record-breaking year for energy usage throughout Arizona. Both Arizona Public Service and Salt River Project set new peak energy demand records this year. While those Phoenix-based utilities have set new peaks in successive years, TEP’s previous peak demand of 2,446 MW dates back to June 2021, more than four years ago.

Hot August weather will likely lead to higher bills for most TEP customers, despite an energy rate reduction that took effect April 1. Evening temperatures have remained relatively high in the 80s, forcing many home cooling systems to work through the night.  In higher outdoor temperatures, HVAC systems use more energy to maintain the same indoor temperature, even if the thermostat is left at one setting all the time.

TEP was well-prepared for this summer’s record usage. Our crews prepared for summer demand by strengthening infrastructure, conducting preventive maintenance, stockpiling inventory and running exercises in preparation for emergency response. We also maintained adequate energy reserves to serve even higher levels of demand if needed.

Our new battery energy Roadrunner Reserve storage system, which became operational last month, worked as it was intended, storing lower-cost energy during the day to help satisfy energy needs through hot peak hours.

The 200-megawatt (MW) system, deployed on both days, served two key purposes: ensuring customers had access to power when they needed it most, and improving efficiency by helping TEP avoid purchasing electricity during peak hours—when both demand and prices were at their highest. The system is the largest energy storage resource in TEP’s portfolio.

TEP also has partnered with customers to help manage peak energy use. Our Defeat the Peak education campaign encourages consumption during peak usage periods. We also offer a Smart Rewards program that provides incentives for customers to allow adjustments to their smart thermostat settings on hot days in the summer. Smart Rewards events have been called eight times this summer. Customers can opt out of any event and maintain complete control of their thermostat.

In summer 2024, Smart Rewards participants collectively saved enough energy across nine separate events to power the equivalent of roughly 2,300 homes.

Collectively, so far this year, with the program ending in late September, participating customers have reduced overall usage by an average of 26 megawatts during the first hour of each event, reducing the amount of power we had to generate or purchase.

To help manage summertime cooling costs, try these simple tips:

• Set thermostats at the highest comfortable temperature. The U.S. Department of Energy recommends setting thermostats at 78 degrees in the summer, although individual preferences may vary. For every degree you raise your thermostat, you can reduce your overall energy costs by about 2-3 percent.
• Use ceiling or oscillating fans to keep air moving so you feel cooler without increasing air conditioner use.
• Use shades, blinds or curtains to keep sunlight out, especially during the afternoon in rooms facing west.
• Don’t block vents or ducts inside the house. Maintaining clear air paths allows your cooling system to work more efficiently. Keep exterior doors and windows closed when running the air conditioner.
• More energy-saving tips are available at tep.com/tips.

Summer is also a good time to sign up for TEP’s Budget Billing program. Participants pay the same amount each month based on their annual electric use, providing a predictable bill and eliminating any summer surprises due to increased warm-weather consumption.

To sign up for Budget Billing or review your payment options, log into My Account or use TEP’s mobile app.

More information on managing high bills is available on our website.