Phoenix, AZ – Earlier this week the administrative law judge (ALJ) for the Arizona Corporation Commission (ACC) sided with Tuscan Electric Power (TEP) and their Canadian holding company in recommending an 11.2% increase in residential electric bills and an increase in TEP’s authorized profits. The judge also permitted TEP to move forward with a new formula rate system that will allow for more frequent rate increases by the monopoly utility with fewer opportunities for public input. The ACC voted to allow utilities to adopt formula rate plans in 2024, but that decision is the subject of legal challenges that are still working their way through Arizona courts.
“This ruling is a win for TEP, which will see its profits increase, and a financial blow to hard working Arizona residents who will see their bills go up by an average of $186 next year,” said Chris Harto, manager, energy policy at Consumer Reports. “Decisions like this underscore why the public has such little trust that utility regulators will protect their interests. The ACC still has an opportunity to reject this order, and reduce TEP’s proposed rate increase, and we urge them to do so.”
A Consumer Reports nationally representative survey of 2003 Americans from April and May of 2026 found that only 7% of Americans trust state regulators a lot or completely to protect their interests.
The ACC is expected to vote on these recommendations on November 17th.
Background:
CR recently launched Power Smarter, a new initiative to help millions of households lower their energy costs and build the collective power needed to make the energy system work better for consumers. As part of the launch, CR unveiled Bill Decoder, a tool that collects consumer utility bill data to map national price trends, uncover cost drivers, and gather evidence to fight for fairer rates. The tool also provides consumers with local financial assistance resources, efficiency ratings, and guides to decode utility terms and fees.