How to read my bill

TEP's rates reflect the cost of providing safe, reliable electric service to our customers. They also reflect the complexity of that task, with fixed charges, usage-based charges and surcharges that can be difficult to understand. The following summary offers explanations for the terms and graphs you'll find on your monthly bill, including links to details posted elsewhere on this website.

Jump to a section: Delivery Services | Power Supply Charges | Surcharges | Taxes and Assessments | Other bill related info

Your TEP Energy Bill

This section provides your account number and an overview of your previous and current charges, including recent payments received and any bill adjustments such as corrections, refunds and fees.

If you participate in our HEERO (Help with Emergency Energy Relief Operation) program to help limited-income customers pay their energy bills, your contribution will display here.

The total amount due is in white against a blue bar so that it stands out prominently.

Service Information

Bill messages will appear in this section in italics. Immediately underneath this message in a light blue box, you will see your service address, the name of your pricing plan, your service number (Service No.), the billing dates and the current charges.

Billed kWh Usage

View up to 24 months of history in a graph that compares your most recent 12 months of usage (in dark blue) to the previous 12 months (in light blue). All usage is in kilowatt-hours (kWh). A kilowatt-hour is the use of one kilowatt of electric power for one hour. The dates your meter was read appear beneath the graph, with the date used for your current bill displayed in orange.

Billing Period Comparison

This chart compares information from this billing period to the previous billing period as well as to the corresponding billing period from the previous year.

Avg High and Low Temperatures

Billing Days

Avg Daily Usage (kWh)

Total kWh Usage

Demand (kW)

Average Daily Cost

Your average daily energy cost is highlighted in this orange circle. This figure is based on the current charges divided by the number of days in the billing cycle. Use this feature to compare your energy costs to other daily expenses.

2 Ways to Save

A colorful graphic provides information about time-of-use and demand-based pricing plans, including the current time-of-use hours, for customers not currently on those plans. Customers on those plans will see a summary of their usage information here.

Payment Stub

Your payment stub contains your account number, the payment due date and the total amount due. Space is available to write in your payment amount and an optional contribution for HEERO (Help with Emergency Energy Relief Operation), a program that provides energy bill payment assistance to limited-income customers.

The stub also contains the address where you should send your payment.

Charges

The Arizona Corporation Commission (ACC) sets rates that divide responsibility for these costs among different types of customers — residential, small business, large business and industrial — based on their typical energy usage patterns. TEP's rates are designed to recover the appropriate portion of these costs from each customer group through a combination of fixed fees and usage-based charges.

Delivery Services

The charges listed in this section of your bill reflect the cost of delivering power to customers. These charges cover the cost of poles, wires, transformers and other infrastructure; employees and contractors who install, operate and maintain that equipment; and other necessary business expenses.

Basic Service Charge

Acquisition Credit

Tax Adjustment Credit

Delivery

Electric usage is measured in kilowatt-hours (kWh) — the use of one kilowatt of electric power for one hour. TEP's rates include separate kWh charges for energy delivery and power supply costs.

The kWh charges for delivery services vary based on several factors.

The rate is higher in the "summer" — defined as May through September — than during the rest of the year — which, for simplicity's sake, is called "winter." The difference is due to the higher cost of serving customers during peak usage periods. Because your bill reflects usage from periods that often include parts of two months, some bills include kWh charges calculated at both summer and winter rates.

Also, on the Time-of-Use and Basic pricing plans, this kWh rate increases as energy use rises. These plans include three tiers: 0-500 kWh, 501-1000 kWh and 1,001 kWh and above. The kWh charge is lowest for usage in the first tier and increases with each successive tier.

Finally, customers on the Time-of-Use and Demand Time-of-Use pricing plans pay different kWh charges at different times of the day. Charges are higher "on-peak" — during periods of high electric usage — and lower "off-peak."

KBH

Demand Charge

Power Supply Charges

This section of your bill includes usage-based charges to cover the cost of generating or buying energy for customers.

kWh charges

All power supply costs are recovered through usage-based fees measured in kilowatt-hours (kWh) — the use of one kilowatt (kW) of electric power for one hour.

Power supply kWh charges are higher during the "summer" — from May through September — than during the rest of the year, which is referred to as "winter." The higher summer rate reflects increased energy costs during that period. Because bills often reflect usage from parts of two months, some bills include kWh charges calculated at both summer and winter rates.

Customers who have signed up for a time-of-use pricing plan pay different power supply kWh charges at different times of the day. Charges are higher "on-peak" — during periods of high electric usage — and lower "off-peak."

PPFAC

GoSolar Shares

Customers who participate in the GoSolar Shares program will see a charge in this section of their bill for the “shares” of solar energy they’ve agreed to purchase. These shares are billed at a fixed rate that replaces the PPFAC and power supply kWh charges for that usage. Any usage that exceeds the amount covered by the customer’s solar share will be subject to standard power supply charges. Any unused shares will be carried over and applied to future bills.

Surcharges

TEP is using more renewable power, helping customers save energy and improving the environmental profile of its generating resources. Some of the costs associated with these efforts are recovered through usage-based surcharges approved by the ACC and listed in this section of your bill.

Renewable Energy Standard Tariff

DSM Surcharge

ECA Surcharge

LFCR EE, LFCR DG

Taxes and Assessments

The charges on your bill are subject to government taxes and fees. TEP forwards all of the money collected from these charges to the appropriate authorities.

ACC Assessment

RUCO Assessment

AZISA Assessment

City Franchise Fee

TEP has reached formal franchise agreements with the cities of Tucson and South Tucson that authorize its use of public rights-of-way and address other aspects of operations. These agreements, which were approved by voters in both cities, also mandate that franchise fees of 2.25 percent in the City of Tucson and 2 percent in South Tucson be added to the bills of customers in those municipalities. All proceeds of those fees are forwarded to the respective city governments.

Sales Tax

Regional Transportation Authority Tax

Public Utility Tax

The City of Tucson charges a Public Utility Tax of 4.5 percent for customers within the city's boundaries. Because this tax is offset by the city's 2.25 percent franchise fee, it only increases the bills of affected customers by 2.25 percent. Together, the Public Utility Tax and franchise fee combine to add 4.5 percent to the bills of TEP customers in the City of Tucson. All proceeds from this tax (and the fee) are forwarded to the City of Tucson.

Usage Information

Beginning in summer 2018, all customers will begin seeing their on- and off-peak usage in kilowatt-hours (KWH) and their on- and off-peak demand in kilowatts (KW). For customers who aren’t using a time-of-use or demand-based pricing plan, this data is for informational purposes only.

Time-of-use plans offer lower energy charges during most of the day and higher charges during on-peak hours. Demand plans combine lower usage-based rates with a “demand” charge based on your highest hour of usage during on-peak time periods.

Meter

Unit of Measure

Next Read Date

Read Date

Usage

Program Promotions

This section promotes the awareness of programs and services that may interest you.

Account Details

In a blue box in the upper right corner, Account Details provides information about program enrollment. The word “Available” will appear if you are not participating in a program but could enroll.

Budget Billing

Auto Pay

HEERO

GoSolar Shares

The GoSolar Shares program offers an easy and affordable way to meet your electric needs with locally generated solar power. With this program, you can purchase solar power in “shares” of 150 kilowatt-hours per month. You can buy some or all of your power through the program, offsetting the need for energy from conventional resources. Solar power “shares” are exempt from two surcharges applied to other electric usages: the Renewable Energy Standard Tariff and the PPFAC (Purchased Power and Fuel Adjustment Clause).

Contact Us and Ways to Pay

This section of your bill includes contact information for TEP and the ACC, ways you can report a power outage and the multiple ways that you can pay your bill.

Regulatory Agency

Report an Outage

Ways to Pay

Demand Side Management (DSM) Surcharge

What is the Demand Side Management Surcharge?

The DSM Surcharge is a monthly, usage-based charge established by the Arizona Corporation Commission (ACC) to pay for cost-effective energy efficiency programs.

These ACC-approved programs can help residential and commercial customers use less energy and save on their monthly electric bills. Energy efficiency benefits all TEP customers by postponing or avoiding the need to build new generating resources and reducing our reliance on fossil fuels, resulting in reduced air emissions and water usage.

The energy savings achieved through these programs help TEP work toward the goals in Arizona’s Energy Efficiency Standard, which calls on utilities to achieve cumulative energy savings of 22 percent by 2020.

How does this affect my bill?

Where does the DSM charge appear on my monthly bill?

Do other utilities have charges like this?

What kinds of energy efficiency programs are available?

Lost Fixed Cost Recovery (LFCR) Surcharge

What is the Lost Fixed Cost Recovery surcharge ?

The LFCR surcharge, approved in 2013 by the Arizona Corporation Commission (ACC), will partly offset the revenue TEP loses when customers reduce their bills through our conservation and renewable energy programs. Without the charge, TEP would be unable to recover the full cost of system improvements that serve all customers, regardless of usage.

This surcharge adds an estimated $2.42 to the average monthly bill of a typical residential customer. That estimate reflects average monthly usage of 800 kilowatt-hours (kWh), so businesses and other customers who use more power will pay a higher LFCR fee.

Why does TEP need an LFCR surcharge?

Rooftop solar arrays, compact fluorescent light bulbs and efficient air conditioning systems have helped customers save money on their monthly electric bills. These savings limit TEP's ability to recover our service costs, including many “fixed” costs that aren't reduced when customers use less power.

Examples of fixed costs include power line repairs, metering expenses and the cost of installing and maintaining the electric grid. Our system covers more than 1,100 square miles and includes more than 2,000 megawatts of generating resources, more than 9,000 miles of underground and overhead power lines and more than 100 substations.

The LFCR will help ensure that the success of our energy efficiency and renewable power programs does not compromise our ability to cover our fixed service costs.

Who must pay this surcharge?

How is the LFCR calculated?

Two methods can be used.

Method 1: Percent of Applicable Billing Amount

Under current rates, a residential customer with monthly usage of 800 kilowatt hours (kWh) would pay $95 in Delivery Service and Power Supply charges.

Estimated Percentage Adjustments	X	Applicable billing amount	=	Monthly LFCR surcharge amount
0.018071 (Energy Efficiency)	X	$95.36		$1.72
0.007363 (Renewable Energy)	X	$95.36		$0.70
*Total LFCR charge*				$2.42

By default, customer bills will be calculated using this method.
With this method, the LFCR is listed under “Surcharges” on your monthly bill and separated to show the amount recovered for energy efficiency and renewable energy requirements.

Will the amount of my LFCR surcharge change?

Environmental Compliance Adjustor (ECA) Surcharge

What is the Environmental Compliance Adjuster?

How will this affect my bill?

Why is the ECA necessary?

Tucson	2.6 percent
Sahuarita	2 percent
South Tucson	5 percent
Marana	4 percent
Oro Valley	4 percent

TEP GoSolar Shares

TEP GoSolar Shares

How to read my bill