Tucson residents packed a public hearing to urge the Arizona Corporation Commission to reject Tucson Electric Power's request for a 14% rate increase, warning that higher energy bills would force low-income families to choose between electricity and basic necessities.

The proposed rate increase would amount to roughly $192 per year for the average customer on a basic plan. The proposed increase is meant to address rising costs and infrastructure investment, with TEP saying that it is unrelated to any anticipated future expenses.

TEP provides service to 457,000 customers in Southern Arizona.

It also includes a tiered discount for low-income customers, with households living between 101% and 200% of the federal poverty level receiving a 20% discount. Those at or below the poverty level would receive a 50% discount.

Corporation Commission Chair Nick Myers said during the March 23 meeting that the state constitution obligates the commission to allow "just and reasonable" energy rates, which he said means finding a balance for both the utility and its customers and allowing for reliable and financially sound utilities that can continue to provide power to customers.

"I understand that utility bills matter deeply to families, seniors, small businesses and communities across Arizona," Myers said. "I hear the concern about affordability and I take those concerns very seriously."

Myers said that public comment was an important part of the rate case process, along with evidence, the record and law.

Every resident who spoke urged the commission to reject the rates, bringing up concerns like affordability and the public health risk posed to people who are not able to afford air conditioning during hot months.

Some residents also cited testimony filed by Attorney General Kris Mayes in the rate case. Since the case is based on historic costs, Mayes argued that TEP could limit its increase to 4% and still recover all its costs, a plan her office says would save residents $200 a year.

TEP disputes that figure, saying the attorney general's plan would hinder its ability to finance future investments.

Betsy Wilkening, a 40-year TEP customer, urged commissioners not to approve the rate increase, calling it corporate greed.

"The rate payers, us, of whom you, the Arizona Corporation Commission, are elected and constitutionally mandated to protect, are the people literally paying the prices," Wilkening said.

She also pointed to the recent temperature increases throughout March, saying a rate increase would force people to choose between food and air conditioning.

LeAndra Corbett, a Tucson resident, said her husband is working past retirement age in order for them to keep up with their rent, medication and insurance.

"That retirement dream of going out once a month with friends or just enjoying life without feeling guilty, it's really becoming impossible," Corbett said. "We don't know if we'll be able to stay in Tucson."

Lucy Eribes questioned whether the rate increase was for service quality or profit, calling her own experiences with TEP "mediocre to bad."

She said that squatters live in the house behind hers and stole her electric bill, calling TEP and adding the house they were staying in to her account.

She refused to pay the bills for the new address, so TEP turned off the power to her own house. She said she's struggled to get in touch with customer service and has been living without power since Feb. 3.

After the meeting, TEP said a customer service representative had gotten in touch with Eribes.

Rate cases are decided based on evidence, but the Corporation Commission says resident testimony is reviewed whether it comes in the form of a public appearance, a phone call or a written letter.

Outside of the hearing, residents are speaking out against the rate increase.

Angie DeSpain is a server who makes the minimum wage for tipped workers and lives in a mobile home park with her family. Trailers can amplify hot and cold temperatures, leading DeSpain to pay more in the summer and winter months, ranging from $90 to $150.

"(If) their goal is to rid families that are on limited or fixed income, to push us out on the streets, then they're doing a great job," DeSpain said.

She said many families have adapted to live within their current means and that a rate increase would force them to make difficult choices or find additional income.

Angelina Macias, a single mother of two boys who works primarily as a caretaker for her son with autism, lives on a fixed income. Though she finds her small community affordable, she pays an electric bill that ranges from $50 to $120 depending on the month, a significant increase from what she paid prior to 2024.

"We are people who live everyday lives, and we require air conditioning. It's not a luxury, it's a necessity in Arizona because of the heat," Macias said. "A rate increase would definitely impact a lot of families in Tucson, and I don't think that it's fair for us to pay more for something that is not a luxury, but a necessity."

Macias said that she tried to apply for a TEP-offered plan for lower income communities, but she was never given a response as to whether or not she was approved.

TEP said it does not disconnect residential customers for nonpayment during extreme heat warnings or during summer months, though customers are still responsible for overdue balances.

The company also offers budget billing, payment extensions and income-based discounts for customers who are struggling to pay their bills. More information is available at tep.com.

A February survey of 500 TEP customers found that 81% rated the company a 7 or higher on a scale of 1 to 10, with more than half giving it a 9 or 10. More than 90% said they were highly satisfied with the reliability of their service.

Community members will have another opportunity to address the Corporation Commission on April 7, when the commission will host a telephone-only session from 5:30 to 8 p.m., and April 22 from 10 a.m. to noon, when people can appear telephonically or in person at the Corporation Commission's Tucson office.

Ian Stash is a journalism major at the University of Arizona and Tucson Spotlight intern. Contact him at istash@arizona.edu.

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