Tucson Electric Power’s (TEP) new rates reward energy conservation by discounting the first 500kWh per month while charging a higher rate for monthly usage in excess of 3,500kWh.
The new rates include a purchased power and fuel adjustment charge (PPFAC) that will recover energy costs not reflected in TEP’s base rates. The PPFAC is expected to remain at zero through at least April 2010 due to a credit from funds previously collected from customers.
Low-income customers who qualify for TEP’s Lifeline discount will not be subject to the base rate increase or the PPFAC. The Lifeline scheme will continue to provide a discount of $8 per month to eligible customers whose household income does not exceed 150% of the federal poverty level. That eligibility limit is currently $2,651 per month for a family of four.
James Pignatelli, chairman, president and CEO of TEP and its parent company, UniSource Energy, said: “Half of our residential customers will see an increase of just 1.2% or less under our new rates. Any customer who wants to minimize the impact of our new rates can do so by conserving energy.”
