Tucson Councilmember Rocque Perez voters to intervene in Tucson Electric's 14% increase

Tucson City Councilmember Rocque Perez joined Mayor Regina Romero and the Tucson Mayor and Council in voting to formally intervene in Tucson Electric Power’s (TEP) proposed 14% residential rate increase, now under review by the Arizona Corporation Commission (ACC).

The intervention positions the City of Tucson as an active party in the rate case, allowing the City to formally challenge the proposed increase and advocate on behalf of Tucson ratepayers.

The proposed 14% increase would raise the average residential electric bill by approximately $16 per month — nearly $200 annually — for typical households. The request comes after a 10% rate hike in 2023 and several increases over the past five years.

“Tucson ratepayers and businesses are already grappling with higher energy costs,” Mayor Romero said following the Council’s vote. “Additional hikes will strain working families, small businesses, seniors and others who are already struggling with affordability.”

Perez supported the City’s decision to intervene, emphasizing that families are facing rising costs across housing, food, healthcare, and utilities.

“Working families cannot keep absorbing rate hikes while corporate earnings climb,” Perez said. “If we are going to ask Tucsonans to pay more, there must be full transparency, accountability, and a clear demonstration that every dollar is justified.”

Arizona Attorney General Kris Mayes also announced that her office would intervene in the rate case, calling the proposed increase “blatant corporate greed.” Mayes noted that TEP’s parent company reported $1.6 billion in net earnings last year and described the utility as a monopoly provider that customers cannot simply opt out of.

TEP has stated that the filing is part of a standard regulatory timeline and is unrelated to Project Blue, the proposed data center development that has drawn significant public scrutiny. Company representatives have defended the rate proposal as necessary to support investments in reliability and grid infrastructure.

By formally intervening, the City of Tucson will participate directly in ACC proceedings to examine TEP’s justification for the increase, assess its impact on ratepayers, and evaluate whether the proposal aligns with Tucson’s affordability and climate goals outlined in Tucson Resilient Together, the City’s climate action and adaptation plan.

Mayor and Council stated that the intervention reflects a broader commitment to affordability, fairness, and responsible oversight of monopoly utilities.

“Our action sends a clear message,” City leadership stated following the vote. “This Mayor and Council will protect our community from unreasonable rate hikes and will work to ensure that energy remains reliable, affordable, and aligned with our climate and equity goals.”

The Arizona Corporation Commission will ultimately determine whether to approve, modify, or reject TEP’s proposed rate increase.