Amy Dominguez, amy.dominguez@sierraclub.org
PHOENIX, AZ – In a blow to Tucson Electric Power (TEP) ratepayers, the Arizona Corporation Commission (ACC), Arizona’s public utilities commission, today voted to approve TEP’s rate increase proposal which will raise residential ratepayers’ bills by an average of 9.02%. After the ACC’s decision today, customers will see their bills increase as early as September 1.
TEP had requested an additional $20.2 million in spending at the Four Corners Power Plant despite a clear record showing that the plant is no longer economical to operate and that TEP could actually save ratepayers money by retiring the plant before 2031. TEP had also requested recovery of $107.4 million dollars in spending at the Springerville Generating Station. Today’s decision comes after the ACC’s earlier decision to increase TEP’s Purchased Power and Fuel Adjuster Charge that has steadily increased customer bills by $113 per year. TEP’s approved proposal demonstrates the continuous climb in rates that have taken place over the past few years.
The ACC’s 4 to 1 decision is the latest in a series that go against what communities and stakeholders have called for, with customers turning out to share their concerns regarding the rate case in public comment hearings that took place earlier this spring and summer, with many advocating to see a reduction in dependence on fossil fuels and a just and equitable transition to renewable energy. Earlier this week, community and clean energy organizations submitted a letter to the ACC calling for TEP to invest in coal-impacted communities for an economic transition, and hold low-income customers harmless for transition costs.
Instead, the ACC passed an amendment that will prevent support for rural and Tribal communities impacted by coal-fired power plant closures, refusing funding for communities that will be impacted by the recent and upcoming closures of coal-fired power plants. Without funding, these communities will be left in the lurch after sacrificing land, water, and health to help power Arizona. Commissioner Anna Tovar held the only dissenting vote.
“The ACC’s decision enables utilities to continue to double down on dirty coal and gas at the expense of low-income communities whose dollars and public health are on the hook for the bad business decisions utilities like TEP introduce and that the ACC validates,” said Sandy Bahr, Director of the Sierra Club’s Grand Canyon Chapter. “It was up to the ACC to make sure that TEP met customers' demands for a clean energy future, and instead, we’ve witnessed that the Commission will prioritize corporate interests.”
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