Tucson Electric Power seeking nearly 12% rate increase

The utility that provides electricity to nearly 440,000 homes and businesses in the Tucson area wants to raise its rates for residential customers by nearly 12%.

Tucson Electric Power says commercial rates will go up by a slightly lower amount. Average residential bills on those with basic plans will go up by about $14 a month and a small business by less than $40 a month.

The company said Friday it will ask the Arizona Corporation Commission to approve the rate hike. If approved, they would go into effect in September 2023.

The company said the increases are needed to pay for its investments in wind and solar renewable energy, grid, and security improvements. Two coal-fired power plant units will be shut down within a decade.