Desert sunset

Tucson Electric Power customers will pay lower energy costs this summer thanks to reduced fuel and purchased power prices.

The Arizona Corporation Commission has approved TEP’s request to decrease the Purchased Power and Fuel Adjustment Charge, or PPFAC, used to calculate customers’ monthly bills beginning May 1. The change is expected to reduce the average monthly bill of a typical residential customer by $4.26. The savings will likely be even greater during the summer, when customers typically use more energy.

“This reduction will take effect just in time to help reduce the impact of home cooling expenses on our customers’ summertime bills,” said David G. Hutchens, TEP’s President and Chief Executive Officer.

The PPFAC is a usage-based charge that reflects changes in the costs TEP incurs to fuel its power plants and purchase energy for customers. TEP passes these costs along to customers without any markup through the PPFAC, which appears on customers’ bills under “Power Supply Charges.”

The charge, currently about seven-tenths of a cent per kilowatt-hour, or kWh, will be reduced to less than two-tenths of a cent per kWh from May 1 to March 31, 2017. The lower rate passes along savings realized through recent reductions in natural gas and purchased power expenses.

While TEP customers will be paying lower energy costs this summer, increased usage will still result in higher overall bills. TEP offers many ways to help customers manage their energy expenses, including energy efficiency options and billing programs.

TEP’s Budget Billing program levels out seasonal swings in monthly bills by dividing customers’ estimated annual charges into 12 equal monthly payments. Discounted rates and emergency bill payment assistance also are available to eligible limited-income customers.