Tucson Electric Power (TEP) customers will be able to choose from several new pricing plans under revised rates approved today by the Arizona Corporation Commission (ACC).

A typical residential customer's average monthly bills are expected to increase by about $8.50 compared to rates paid in November 2015, when TEP requested new rates. The increase covers the cost of new energy resources, upgraded distribution networks and other necessary upgrades to secure and expand TEP's energy grid.

When the changes take effect on or before March 1, residential and small commercial customers will be able to choose new Time-of-Use (TOU), Peak Demand and Demand TOU plans as alternatives to a Basic plan. Time-of-Use plans offer lower rates most of the time but higher rates during on-peak hours. Demand plans combine even lower energy charges with a fee based on customers' highest hourly energy use.

The new TOU, Peak Demand and Demand TOU plans will feature a reduced basic service charge of $10, compared to $13 for the Basic plan. The new plans allow customers to reduce their bills by limiting their electric use during periods when customers typically use the most energy. Additional details about the new plans will be posted on tep.com and provided to customers in coming months.

"Our new rates include a new suite of pricing plan options for customers that offer new savings opportunities and contribute to the long-term sustainability of our local energy grid," said David G. Hutchens, TEP's President and CEO. "These new rates also support our ongoing investments in cost-effective energy resources that help us provide safe, reliable service."

TEP's new rates also offer expanded, simplified discounts for limited-income customers who participate in the company's Lifeline program. Instead of requiring the use of a dedicated pricing plan, TEP will provide Lifeline participants with a fixed monthly discount of at least $15. This change more than doubles the resources directed to limited-income discounts.

The ACC also approved a new economic development incentive designed to attract new business and encourage existing employers to expand their operations and add employment. Temporary incentives are available for qualifying businesses, lending support to local job creation efforts.

Residential and small commercial customers with new private solar arrays will pay a new monthly fee to cover the costs of the second electric meter used to measure solar output. That fee will be $2.05 for residential customers and 35 cents for small commercial customers. Customers with existing systems are exempt from this new fee.

The ACC is expected to consider other proposed changes for new users of private solar power systems later this year, including revised rates and compensation for any excess energy they produce.

Tucson Electric Power | www.tep.com