Tucson residents are voicing concerns as Tucson Electric Power (TEP) seeks approval for a 13% rate increase. The proposed hike, which could take effect in September 2026, has raised questions about affordability, especially for those on fixed incomes. Janelle Menick and Hal Bergsma, among others, have expressed worries about the impact on essential expenses like food and medication.

TEP’s Justification and Opposition

TEP, serving around 455,000 customers in Pima County and Fort Huachuca, argues the increase is necessary to cover the rising costs of maintaining the energy grid and to ensure a return for investors. Since 2021, TEP has invested $1.7 billion in projects like the Roadrunner Reserve energy storage system, but inflation and cost recovery challenges persist.

However, Arizona’s Attorney General Kris Mayes suggests a 4% increase would suffice, aligning customer payments with actual costs. TEP spokesperson Joseph Barrios counters that such a low return could hinder infrastructure investments and grid reliability.

Annual Rate Adjustment Mechanism Proposal

TEP is also proposing an Annual Rate Adjustment Mechanism (ARAM) to update rates annually, aiming for more predictable cost reflections. Critics, including the Residential Utility Consumer Office (RUCO), argue this could lead to unchecked rate increases. RUCO’s expert, Dustin Madsen, likens it to a “blank check,” potentially burdening consumers without incentivizing cost reductions.

Local officials, including Tucson city council member Miranda Schubert, oppose the ARAM, citing risks to public oversight. The Tucson City Council and Pima County Board of Supervisors have both formally opposed the rate increase and ARAM, emphasizing the potential economic strain on residents and businesses.

Community Concerns and Economic Impact

Cynthia Zwick of RUCO highlights the struggle many face with current utility costs, while Claire Michael from Wildfire AZ notes that low-income households spend a significant portion of their income on electricity. The city of Tucson has intervened in the rate case, concerned about the financial impact on its budget and residents, potentially leading to higher taxes and fees.

As the Arizona Corporation Commission continues to deliberate, the outcome of this rate case will significantly affect Tucson’s economic landscape and residents’ daily lives.

Original reporting: Arizona Luminaria — read the source article.