Updated: March 2026
Commercial rate guide for TEP — Southern Arizona including Tucson, Oro Valley, Marana, and surrounding Pima County communities. Subsidiary of Fortis Inc.
General service (GS) and large general service (LGS) rate schedules. Time-of-use rates with summer on-peak periods. Demand charges for accounts above 20 kW. Renewable energy surcharge applied to all accounts.
Rising
6.1% rate increase effective February 2026 approved by AZ ACC for grid moderniza
6.1% rate increase effective February 2026 approved by AZ ACC for grid modernization and renewable energy integration
Property managers with TEP accounts frequently encounter these billing challenges:
Extreme summer demand charges from air conditioning loads
Time-of-use on-peak window creating cost spikes
Solar export rate reductions affecting commercial solar ROI
Demand charges during monsoon season brownout recovery periods
Renewable energy surcharge calculations
The utility is the sole provider in this service territory.
Arizona is a regulated electric market. Tucson Electric Power is a vertically integrated utility regulated by the Arizona Corporation Commission. No competitive supply choice available.
Rate design reform proposal with expanded time-of-use periods under AZ ACC review; battery storage incentive program petition pending
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