However, customers of UES sister utilities: Tucson Power Companywe’ll have to wait until next week to find out how much more we’ll have to pay to reimburse TEP for similar costs. Arizona Corporation Commission delayed the decision After hours of discussion about the possibility of a larger increase.

The committee unanimously called for UES to increase usage-based surcharges, known as purchased power and fuel adjustment clauses, to help utilities recover outstanding costs totaling about $104 million at the end of March. Decided to approve the request.

Underpaid amounts represent amounts already spent on fuel and electricity and are entitled to interest on unpaid underpaid amounts, but are passed directly to the rate payer with no benefit to the utility.

UES, which serves 19,000 electrical customers in Santa Cruz County and 80,000 electrical customers in Mojave County, asked the Commission to fill the shortfall with higher surcharges over a period ranging from 12 to 12 months. I have presented some options to compensate. About $54 — up to 33 months.

The Commission’s Utilities Division staff recommended a surcharge based on a 27-month repayment schedule. This will increase the average residential customer’s monthly bill by $17.57 per month until the outstanding balance is zero.

However, the Supreme Advisor Residential Utilities Consumer Officethe state agency representing housing rate payers, urged the commission to consider extending cost recovery to 33 months, lowering the average monthly increase to $11.15.

RUCO’s Daniel Pozefsky said: “It will certainly be a lot easier for the payers and less pain in terms of moving the ball for the company to retrieve.”

Executive Director Diane Brown Arizona Public Interest Research Group Education Fundsaid many consumers would choose smaller payments when needed and prefer longer surcharges to avoid “rate shock”, even if that means paying more in the long run.

Commission members Kevin Thompson and Lea Marquez Peterson also said they wanted to soften the impact on consumers, with Peterson proposing an amendment extending the recovery period to 33 months.

Commissioner Nick Myers said he could not endorse longer repayment terms because of the additional interest costs that interest rate bearers would ultimately pay.

“$17 a month is an extra hour at In-N-Out (Burger) and the minimum wage remains the same. That’s the economy we live in,” Myers says.

Myers and Commission Chairman Jim O’Connor voted against extending the surcharge increase period to 33 months, but the amendment passed 3-2 and the Commission unanimously amended it. Approved the proposal.

The committee discussed TEP’s request to increase surcharges for fuel and purchased power in detail before deciding to reserve the item for voting at next week’s emergency public meeting.

Newly mandated surcharges for TEP increased average household bills by $13 per month over the course of a year, helping utilities recover $148 million in wholesale power and natural gas costs, which surged nearly 300% since 2019 You will be able to

Proceeds from the new surcharge will reimburse TEP for approximately $44 million in previously unrecovered costs and $104 million in the “futures component” that tracks recent spending, although the new figure is That number tends to go down.

Commission staff recommended a 12-month surcharge increase on top of the current average monthly surcharge of $6.36.

Our staff recommends higher surcharges during the winter months when bills are generally lower and lower surcharges during the high usage summer months to reduce the average total monthly surcharge. Maintain an estimated $18.43 throughout the year.

Summer in TEP is from May to September and winter is from October to April.

The request for a surcharge increase on TEP came as regulators considered requests for a pending 12% general tax rate increase on TEP after the ACC approved an average surcharge increase of $4 just over a year ago. Done.

RUCO and Forest fireanti-poverty groups say the TEP’s proposed $13 monthly bill hike is a big deal for rate payers already struggling amid high inflation and facing another general rate hike this year. said too much.

Marquez Peterson said he was hesitant to approve a surcharge to collect all the money in 12 months, while other commissioners said they were open to extending the collection period.

The Commission agreed to postpone the vote until an extraordinary public meeting on Thursday, May 11, to give TEP and Commission staff time to develop estimates of the impact of the new bill.