Arizona Electric Utility Rate Cases: What You Need to Know

In 2025, both Tucson Electric Power Company (TEP) and Arizona Public Service Company (APS) filed new rate cases with the Arizona Corporation Commission (ACC). These filings mark the beginning of a process that will directly impact what Arizonans pay for electricity in the coming years.

What Is a Rate Case?

A rate case is the legal and regulatory procedure through which a utility company requests permission to adjust the rates it charges customers. Unlike most businesses that can freely set prices, regulated utilities (also known as monopolies) must justify their rates to the ACC.

This process is designed to balance:

• Consumer interests – ensuring affordable and reliable service
• Utility needs – allowing companies to recover costs and earn a fair return
• Public policy goals – supporting infrastructure investment, renewable energy, and conservation

AARP Arizona’s Role

AARP Arizona is closely monitoring both the TEP and APS rate cases. As these proceedings ramp up in January, AARP will:

• Provide updates to members
• Host seminars and workshops to help residents understand the process
• Offer guidance on how to get involved and be heard

Importantly, AARP Arizona has formally intervened in the APS case. Intervention is a legal process that makes AARP a party to the case. This means AARP can present expert testimony, participate in discovery and analyze utility finances, and examine witnesses put forward by APS. Through this role, AARP Arizona serves as the voice of residential consumers across our state.

Why It Matters

Utility rate cases affect every household and business in Arizona. They determine:

• How much residents pay for electricity, water, and gas
• How utilities invest in infrastructure and renewable energy
• The balance between corporate profits and consumer protection

By staying informed and participating in hearings, residents can play a meaningful role in ensuring fair and transparent utility pricing.

AARP Arizona’s intervention underscores the importance of consumer advocacy in these proceedings. As the cases unfold, the voices of everyday Arizonans will be critical in striking the right balance between affordability, reliability, and utility investment.