TEP will be reducing average residential bills by more than $4 per month beginning this summer, thanks to a reduction in a surcharge that reflects recent energy costs.
Lower fuel and purchased power costs allowed TEP to boost the Purchased Power and Fuel Adjustment Charge credit, a change that was approved by the Arizona Corporation Commission in March. It’s the second year in a row that a change in the surcharge benefited customers just before summer.
Actual bill impacts will vary depending on energy usage. Residential customers with typical summertime usage will see bill reductions of about $6 this summer, with lower savings in months with cooler weather.
“We’re pleased to pass along savings to help reduce the cost of keeping comfortable during Tucson’s hot summers,” said Susan Gray, TEP’s President and Chief Executive Officer.
TEP is always working to reduce the energy costs passed along to customers through a responsible hedging policy that mitigates market volatility. We also work hard to reduce other costs to ensure that our service remains as affordable as possible without compromising on safety or reliability.
Despite lower energy costs, increased energy usage will still drive bills higher than they have been during cooler months. The surcharge will be reset again in March 2026.
TEP offers many ways to help customers manage their energy expenses, including energy efficiency options and billing programs.
Consider a new pricing plan or payment program: Our Budget Billing program levels out seasonal swings in monthly bills so you can pay the same amount year-round. We’ll divide your estimated annual charges into 12 equal monthly payments. Discounted rates and emergency bill payment assistance also are available to eligible low-income customers.
You also might explore alternate pricing plans, including time-of-use rates that offer discounts for usage during off-peak hours. We also offer plans that pair reduced energy charges with a “demand” charge based on your highest on-peak energy use. These plans reward customers who can limit their concurrent use of large appliances during on-peak hours.
Customers with flexibility to adjust when and how they use energy could find opportunities to reduce their monthly energy bills. See which plan might be right for you with our Pricing Planner tool, which provides forecasts based on your past 12 months of energy usage.
Explore ways to save energy: Improving energy efficiency not only lowers your energy bills, it improves the comfort and quality of life for you and your family. Simple lifestyle modifications can make a big difference, especially if you can conserve energy during times of peak usage.
Cooling your home in the summer, for example, can be one of your largest energy expenses. The U.S. Department of Energy recommends setting your thermostat at 78 degrees in the summer and using fans to help you feel cooler. Through our Efficient Home program, we offer rebates for air conditioning tune-ups and also for replacements if you’re air conditioner just won’t make it through another summer.
Find out if you qualify for payment assistance: We offer monthly low-income discounts to qualifying customers. We can also help you learn how to apply for agency assistance and can assist with payment plans if you’re falling behind.
