Public comments were heard for the last time on Wednesday, the first day of Tucson Electric Power’s proposed rate case hearing.
The electric utility, which serves more than 400,000 customers, is asking the Arizona Corporation Commission – the state’s utility regulator – to increase its rates by 14%.
Nick Myers, chair of the commission, began his remarks by stating that utility bills matter deeply to seniors, families and small businesses and that he takes concerns for affordability seriously. He noted that while commissioners are bound by the state constitution to set just and reasonable rates, they also need to ensure utilities provide safe and reliable services to its customers.
Commissioners Kevin Thompson, Lea Marquez-Peterson and Rene Lopez attended the hearing virtually.
Not one speaker spoke in support of the proposed rate increase, rather many customers have been vocal in their opposition in the weeks leading up to the hearing, citing concerns over affordability and reliability.
“Pay attention to those who are saying that this rate increase would place lives at risk, rise to the moral demands of this issue and choose to support the people of this community,” said Karen MacDonald, a minister of Rincon Congregational United Church of Christ in Tucson.
“Would you be comfortable sleeping at night knowing that many families can’t afford air conditioning?” asked Marta Enriquez, a local caregiver supporting a multigenerational household.
“How am I supposed to keep up with bills, when the finish line keeps moving?” asked Rhonda Smith, a grandmother living on a fixed-income.
“A TEP rate hike is going to affect so many veterans on a fixed income, especially veterans kind of like on the edge of poverty, which there are many here in Tucson,” said Shelly Burgoyne – she and her husband are veterans who also live on a fixed-income and expressed concerns over Project Blue, a developing data center in Pima County.
Myers made himself available following the public comment period to answer questions from customers to speak about the general process but not the merits of the case, following the 90-minute public comment period.
The last time TEP raised its rates was in 2023 by 10% after a rate-case proceeding and in 2021, by 6% due to increased costs and fuel and power.
“If you compare our bills in September 2023, when our current rates took effect, to September of this year, if our proposal was approved, the average residential bill would only increase by less than $4, it’s closer to $3,” saidJoe Barrios, spokesman with TEP. He added that customers who are struggling to afford paying for their bills, should reach out to the utility company for assistance or to be connected with local community organizations that can provide emergency assistance if customers have already opted for payment plans or payment extensions.
The formal rate case hearing began at 12:40 p.m.before administrative law judge, Julia Matter.
The hearing is expected to take about three weeks in Tucson, and it is unlikely that a decision will be made in May.
Individuals are still able to submit comments to the docket, which will have the same weight as comments made during a meeting. Public comments are not considered evidence, but are reviewed during the case, Matter said.
Arizona Attorney General Kris Mayes has intervened in the rate case, accusing TEP of corporate greed. She has suggested that rates could be increased by 4%.
