Vice Chair Myers Votes to Reduce TEP and UNSE LFCR Surcharges

Phoenix, Ariz.- At the Arizona Corporation Commission's (ACC) September 17, 2025, regular open meeting, Vice Chairman Nick Myers joined the Commission in a 5-0 vote reducing the Lost Fixed Cost Recovery (LFCR) surcharges for Tucson Electric Power Company (TEP) and UNS Electric, Inc. (UNSE) customers. This vote results in slight decreases in monthly customer bills.

"I was pleased to vote in favor of these reductions, which reflect our continued commitment to ensuring fair and reasonable rates for Arizona families," stated Vice Chair Myers. "Even modest bill decreases can make a difference, and I'm glad to support adjustments that benefit utility customers."

The LFCR allows for the recovery of lost fixed costs authorized by the Commission, as measured by revenue per kilowatt-hour (kWh), associated with Energy Efficiency (EE) and Distributed Generation (i.e., rooftop solar). Costs to be recovered through the LFCR include the portion of transmission and distribution costs included in base rates, not including the customer charge and 50% of the demand rates in effect.

TEP's LFCR rate is decreasing from 2.1242% for EE and 0.7723% for DG to 1.5338% for EE and 0.3548% for DG. TEP estimates that these new rates, effective October 1, 2025, will result in a decrease of approximately $1.31 on a residential bill with an average monthly usage of 807 kWh. TEP customers with a higher monthly usage will see a greater decrease in their LFCR surcharge.

UNSE's LFCR rate is decreasing from 1.2187% for EE and 0.4106% for DG to 0.7536% for EE and 0.3462% for DG. UNSE estimates that these new rates, effective October 1, 2025, will result in a decrease of approximately $0.77 on a residential bill with an average monthly usage of 850 kWh. UNSE customers with a higher monthly usage will see a greater decrease in their LFCR surcharge.

For more information, please contact Vice Chair Myers at [email protected].