Pima County Board Votes 2-1 to Oppose Tucson Electric Power's 14% Rate Increase

TUCSON — The Pima County Board of Supervisors voted 2-1 Monday to approve Resolution 2026-25, formally opposing Tucson Electric Power's proposed 14% rate increase before the Arizona Corporation Commission and directing county attorneys in an ongoing rate case intervention.

The board convened a special meeting ahead of the ACC's evidentiary hearings, which are scheduled to conclude May 12 — before the board's next regular meeting. Chair Allen said the timing was critical to ensure the county's position is on the record during the evidentiary phase. Supervisors Hynes and Scott were absent; the three present members constituted a quorum.

The resolution, as amended, outlines four key positions the county will advance through its intervention: opposing TEP's requested 14% rate increase in favor of a 4% increase aligned with the state attorney general's recommendation; opposing a proposed Annual Rate Adjustment Mechanism, known as the ARAM, that would allow TEP to seek rate increases before the ACC each year; supporting a percentage-based low-income assistance program to replace the current flat $20-per-month subsidy for customers at approximately 200% of the federal poverty level; and supporting Rider 23, which would create a deferred payment program for mobile home park tenants seeking individual electrical metering, with upfront conversion costs estimated at $300 to $500 per unit.

An amendment submitted by the District 2 office, adding language specifically addressing master metering, was incorporated into the resolution as a friendly amendment. Supervisor Cano, who seconded the motion, confirmed agreement with including District 2's additions before the vote was called.

Supervisor Cano spoke in support of the resolution prior to the vote, citing what he described as "unprecedented communication" from constituents about the proposed increase. "Ratepayers with one utility in the entire region really have no ability to be using any other service," Cano said. He added that TEP reported more than $200 million in profits last year, calling it "prudent for the county to be on the side of ratepayers."

The lone dissenting vote came from Supervisor Christy, who argued the ACC's existing public hearing process should be allowed to proceed without county intervention. He also questioned the attorney general's involvement, saying the office "has many better projects than involving itself with some utility rate increase," and pointed to the costs of converting coal-burning plants to natural gas as a legitimate driver of rate increases. "I don't like higher electric bills any more than I like higher property taxes," Christy said, "but I will be voting against this resolution."

Also discussed:

Cano noted for the record that the Green New Deal was never passed by the U.S. Senate, in response to Christy's invocation of the term during his remarks against the resolution.
Chair Allen noted that Pima County filed to intervene in the TEP rate case before the ACC shortly after the board's decision on Project Blue.