Photo via Arizona Corporation Commission
By Reagan Priest | State Affairs
The Arizona Corporation Commission kicked off the highly-anticipated rate case for Tucson Electric Power Wednesday, with the company saying it is willing to drop its originally-proposed 14% rate increase down to 12%.
After an hour and a half of public testimony slamming both TEP and the all-Republican commission, the rate case moved to opening statements. Michael Patton, an attorney for TEP, defended the company’s double-digit return on equity request and formula rate proposal as essential for keeping the company healthy and serving its customers.
Patton noted that utility companies are also struggling with high costs and inflation, in addition to increased demand on Arizona’s energy grid.
“A competitive return on equity will assist in maintaining TEP’s financial stability and allow it to meet its capital needs to address these challenges,” Patton said during his opening statement.
