Attorney General Mayes Granted Intervention in TEP’s Rate Case to Protect Consumers From Rising Electricity Bills and Cost of Living Crisis

TUCSON –Today, the Arizona Corporation Commission (ACC) approved Attorney General Kris Mayes’ request to intervene in Tucson Electric Power’s (TEP) pending rate case, which seeks to raise average residential bills by nearly 14%.

Attorney General Kris Mayes released the following statement about her intent to oppose the rate hike:

“This is blatant corporate greed. TEP’s parent company reported $1.6 billion in net earnings last year. This is a billion-dollar company that wants to increase the average Tucson consumer’s monthly bill by 14% following back-to-back rate hikes over the past five years. It’s time to say ‘enough.’

We're watching a monopoly utility try to abuse the system. Tucson consumers cannot choose a different electric service provider unless they sell their house and move. We cannot keep letting our monopoly utilities take advantage of ratepayers, who are already facing spiraling electricity bills and a cost-of-living crisis."

If TEP’s requested rate hike is approved, Tucson consumers will likely pay an extra $19.43 per month for electricity beginning next year. In 2023, TEP increased rates by 10%, which raised the monthly cost of electricity by an average of $11 for Tucson consumers. TEP also increased rates by 6% in January 2021. According to the Arizona Daily Star, TEP’s rates have risen almost as fast, percentage-wise, in the three years between 2020 and 2023 as they did in the 22 years from 1998 through 2020.

TEP’s requested rate hike would raise TEP’s revenue by $172 million annually, on the backs of Tucson households and businesses. TEP claims that their rate hike request is in response to rising costs, but Fortis Inc., the utility’s parent company, reported net earnings of $1.6 billion in 2024.

TEP provides electric services to more than 452,000 consumers in the Tucson metropolitan area. The proposed rate hike would impact the majority of Tucson-area residents.

Attorney General Mayes has already intervened to vigorously oppose APS’s proposed rate hike. Attorney General Mayes previously served on the Arizona Corporation Commission.

A copy of the Corporation Commission order granting AG Mayes’ intervention in the TEP rate case is available here