The Pima County Board of Supervisors voted 2-1 to formally oppose Tucson Electric Power's proposed 14% rate increase, directing county attorneys to intervene in the ongoing rate case before the Arizona Corporation Commission.

TEP filed for the rate increase with the ACC last June, with the new rates projected to take effect in September 2026 if approved, adding about $16 per month for the average residential customer.

TEP says the increase is needed to recover $1.7 billion in grid investments made since 2021 and to account for inflation. Attorney General Kris Mayes has filed expert testimony with the ACC arguing the increase is unjustified and could be reduced to 4% while still maintaining reliable service and a strong credit rating.

Supervisors Jennifer Allen and Andrés Cano voted in favor of the resolution, with Supervisor Steve Christy voting no, saying that he didn't think the county or attorney general should be investing time or resources on the issue. Supervisors Rex Scott and Matt Heinz were absent from the May 5 meeting.

"I don't like higher electric bills any more than I like higher property taxes, especially when there are so many county roads that are still in disrepair," Christy said. "But I don't remember any attorney general suing Pima County on behalf of property owners being forced to pay higher property taxes."

Christy said the ACC's hearing process should be allowed to proceed without interference, adding that TEP's efforts to refit their coal-burning plants into natural gas would have to be paid for and these rates are "the cost of the Green New Deal."

The resolution also makes note of the board's support for the proposed 4% increase and the low-income assistance program, as well as the proposed changes to TEP's low-income service and the new Rider-23 system for mobile homes.

TEP's current low-income program provides a fixed $20 monthly discount for qualifying customers. Under the proposed guidelines, the program would be expanded to offer discounts to customers at or below 200% of the federal poverty level.

The Rider-23 program would provide individual metering for mobile home tenants who wish to convert, with an upfront cost of $300 to $500 per unit and fixed monthly costs for 10 years after that.

Mobile home parks often run electricity through a single master meter, with the park operator paying the bill and passing costs on to tenants, rather than each unit having its own direct account with the utility.

Because tenants have no direct relationship with the utility, they have little recourse when costs are inflated, service is poor or billing is unclear, and they cannot access low-income assistance programs that require a direct utility account.

Allen said the Rider-23 program would benefit mobile home park operators by shifting ownership and maintenance of electrical infrastructure to TEP.

The resolution also takes aim at another piece of TEP's proposal, saying the annual rate adjustment mechanism would reduce regulatory oversight and public participation while allowing for more frequent rate increases with limited transparency.

The resolution also references the role of hyperscale data centers in driving higher energy demand, noting that the costs of additional infrastructure will ultimately be passed on to ratepayers.

Allen said Pima County has filed to intervene in the rate case before the ACC, which is currently holding evidentiary hearings. She said the resolution was meant to guide county attorneys on the details of the intervention, allowing them to submit evidence, cross-examine witnesses and get on the record during that phase.

"The call that we get most often from constituents is around utility rates and people struggling to pay their bills," Allen said. "This is a critically important opportunity, I think, for us to be able to respond to some of the basic needs that our constituents and our residents are facing."

Allen cited the attorney general office's extensive analysis as her reason for supporting the alternative 4% increase.

Allen said proponents of the annual rate adjustment mechanism argue it could lower rates in some years, but she noted that examples of rates actually decreasing under such mechanisms are "nonexistent."

District 5 Supervisor Cano said the level of communication they have received over the past several weeks on the topic has been "unprecedented," saying the increased rates along with rising prices of gas and other necessities would hurt the community.

"I'm always going to stand on the side of ratepayers in ensuring that we are being good fiscal stewards of people's money, especially our working families," Cano said. "We need to be saving people some money. And ultimately with a company that reported over $200 million in profits last year, I believe it's prudent for the county to be on the side of ratepayers."

Ian Stash is University of Arizona alum and freelance journalist in Tucson. Contact him at istash@arizona.edu.

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