The Navajo power plant, which was partially owned by Tucson Electric Power, decommissioned in 2019.
Dean Knuth / Arizona Daily Star 2017
David Wichner Arizona Daily Star
Tucson Electric Power customers will see their monthly bills increase by an average of $ 1.50 per month from June after state regulators approved a surcharge on fuel and purchased electricity.
The usage-based surcharge, which resets annually to offset what TEP pays for fuels like coal, natural gas, and wholesale electricity, will also rise over the next year as TEP can recover unrecovered costs of $ 27 million.
That includes about $ 7 million for a postponed raise last year, a $ 12.5 million settlement with the owner of a coal mine that powered the now-closed Navajo Power Plant, and $ 7 million for that Effects of COVID-19 and severe weather last year year.
The Arizona Corporation Commission on Wednesday unanimously approved a plan to postpone implementation of the award until June and postpone half of the cost recovery to 2022.
According to the decision, TEP residential customers with an average monthly electricity consumption of 844 kilowatt hours will see a monthly bill increase of $ 1.48 as of June 1, followed by an increase of $ 1.51 if the surcharge is reset next year.
The surcharge, known as the purchased electricity and fuel adjustment fee, appears on TEP invoices under “Electricity Charges” and is sometimes a credit if the cost is lower than expected. It is a direct pass-on and TEP does not make a profit on the proceeds.
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