About 50 People Contest Tucson Electric Power’s Rate Increase At Public Comment Session

TUCSON, AZ--  At the second Arizona Corporation Commission (ACC) public comment session on Tucson Electric Power’s (TEP) rate increase request, about 50 people submitted comments against the hike. The rate increase would tap into customers’ pockets to pay for the utility’s over reliance on uneconomical fossil fuels. Opponents of the rate increase include the City of Tucson, Sierra Club, Vote Solar, Western Resource Advocates, and Southwest Energy Efficiency Project.

TEP is seeking a rate increase to cover the expenses associated with purchasing part of the Gila River Gas Plant, constructing and operating the Reciprocating Internal Combustion Engine (RICE) fracked gas units at the Sundt facility, and continuing the operation of four units at two coal plants: Springerville and Four Corners. The current request is for a retail revenue increase of about $60.1 million, effective May 1, 2020. If the ACC approves TEP’s request, residential electric rates for the average residential customer on non-time-of-use plans will rise by 6.8 percent or about $6.82 per month. For residential customers on any of TEP’s time-of-use rates, average bills would increase by 7.4 percent, or $7.18 per month. TEP is also seeking a $2 per month increase in the fixed charge for residential customers.

“While other utilities across the West are seeking ways to divest from fossil fuels, cut carbon emissions, and build new renewable energy, TEP is falling behind,” said Catalina Ross, Southern Arizona Energy Program Coordinator at the Sierra Club’s Grand Canyon Chapter. “TEP wants to charge customers to bail out their coal and fracked gas plants instead of tapping into Arizona’s solar potential.”

A recent analysis by Strategen found that retiring Springerville Generating Station units 1&2 and Four Corners Generating Station units 4&5 ahead of TEP’s current schedule, and switching to solar and battery storage, could save TEP customers more than $777 million. Similarly, gas plants are quickly being outpriced by clean energy technologies that have no fuel costs and low maintenance costs.  A study by Rocky Mountain Institute found that 90 percent of combined-cycle gas plants proposed for the next five years could be cost-effectively avoided with clean energy.

"Raising fixed customer charges is the exact opposite of what will help grow a clean energy grid in southern Arizona. The Corporation Commission needs to understand the urgency of decarbonizing before it is too late," said Duane Ediger, Tucson-based solar installer.

Across the region, other utilities are making major commitments to clean energy and carbon reductions. Just last week, Arizona Public Service (APS) committed to 45 percent renewable energy generation by 2030. At the moment, only 13 percent of TEP’s power is generated using renewable sources. 

“Burning fossil fuels has had detrimental costs on the livelihood of various communities in Arizona, from respiratory illnesses to polluted water and land,” said Vana Dee Lewis, Program Coordinator for the Culture Of Peace Alliance in Tucson (COPA). “With the vast clean resources available for generating power, TEP has a responsibility to seek those alternatives that do not harm our communities and to support us in building a clean and healthy energy future that benefits all.”

Among those calling for TEP to help coal-dependent communities transition were Navajo Nation President Jonathan Nez and Indigenous NGOs (here and here). As the Navajo Nation adjusts to last year’s closure of the Navajo Generating Station, and the upcoming closure of the San Juan Generating Station, President Nez and the Indigenous NGOs emphasized the need for TEP to start laying the groundwork now for a just transition for the inevitable, early retirement of the remaining coal plant fleet.