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Tucson Electric Power rate increase

Electric · Arizona · Investor-owned utility · part of Fortis Inc.

Proposed

Last checked

Tucson Electric Power has a pending increase of about +$12.92/month for a typical 638 kWh home starting December 2026, if regulators approve the request.

Details and sources · Estimate for your home

Rate changes, newest first

TEP 2025 general rate case and proposed annual formula rate (ARAM)

Base rate case · Electric

Proposed

Typical residential bill (638 kWh/month)

  • +$12.92/mostarting December 2026 (+11.6%)TEP's July 2026 updated proposal, Basic pricing plan at median usage. The original June 2025 filing showed +$19.43 (13.7%) at 805 kWh, from $141.60 to $161.03.

Proposed amounts; regulators may change them.

Filed
June 2025
Decision expected
November 2026
Requested effective
December 2026
Requested increase
$135 million
Approved increase
Pending
Docket
E-01933A-25-0103

TEP filed in June 2025 for a $172 million net revenue increase plus an annual formula-rate mechanism (ARAM); by its July 2026 briefs it had cut the request to $135 million with a 9.75% return on equity. The Attorney General argued no more than 4% was needed, per AZPM. A final ACC decision is due by Nov. 17, 2026.

Utility's stated reasons

  • Recover about $1.7 billion invested since 2021
  • Grid upgrades and new resources such as battery storage
  • Proposed annual formula-rate adjustment (ARAM)
  • Higher costs since rates were last set
Sources (6) · Verified against regulator or utility filings

Last verified Oct 2, 2026

TEP fuel and purchased power credit (PPFAC) increased from April 2025

Fuel / purchased power · Electric

In effect

Typical residential bill (767 kWh/month)

  • −$4.38/mostarting April 1, 2025PPFAC credit moved from $0.001446 to $0.007150 per kWh (both per ACC), a further credit of $0.005704/kWh by subtraction. ACC kept the rate in April 2026.
Filed
Not disclosed
Decided
March 12, 2025
Effective
April 1, 2025
Requested increase
Not disclosed
Approved increase
Not disclosed
Docket
E-01933A-22-0107

The ACC voted 5-0 in March 2025 to enlarge TEP's fuel and purchased-power credit to $0.007150 per kWh from April 1, 2025, citing lower forecast fuel and power costs. The ACC put the savings for a typical 767 kWh bill at about $4.38 a month. TEP says regulators kept the same rate in April 2026.

Utility's stated reasons

  • Lower forecast fuel and purchased power costs
  • Annual true-up of past fuel cost recovery
Sources (3) · Based on news or utility announcements

Last verified Oct 2, 2026

What it could mean for your bill

Sources state the impact for one typical home. Enter your own usage or bill for a rough estimate.

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Who decides

Utility website: www.tep.com

Related

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Last checked Oct 2, 2026. Spotted something out of date? Tell us.