Tucson residents to see lower electric bills with new rate approval

PHOENIX (KVOA) — The Arizona Corporation Commission approved a plan to reduce Tucson Electric Power Company bills starting April 1.

Vice Chairman Nick Myers joined the unanimous 5-0 vote on March 12, 2025, to adjust TEP’s Purchased Power and Fuel Adjustment Clause rate, increasing the credit back to customers.

The new rate will decrease average residential bills by about $4.38 per month, based on average usage of 767 kWh. Customers will receive a credit of ($0.007150) per kWh through March 31, 2026.

“I am so pleased that for a second year in a row the Commission has been able to approve a credit back to customers through TEP’s PPFAC for a total reduction of over $16 per month,” said Myers.

The previous rate, effective June 2024, provided a credit of ($0.001446), resulting in an $11.91 reduction per month on average residential bills.

Myers noted the PPFAC’s effectiveness, saying, “The PPFAC continues to work as it should with its true-up component and taking into account lower forecasted cost of procuring fuel and power.”

Residents can expect these changes to reflect on their bills starting April 1, 2025.