Tucson Electric Power (TEP) Rate Selection Guide

Tucson Electric Power (TEP) is an investor-owned electric utility serving roughly 455,000 customers in the greater Tucson, Arizona area. TEP has deployed AMI smart meters providing hourly interval data via its My Energy Usage portal with CSV download, supports EDI 810 invoicing over FTP, and authorizes third-party data sharing through a formal Usage Data Release Form. TEP is regulated by the Arizona Corporation Commission.

Arizona · Investor-Owned Utility·Regulated market·Fully supported by Nectar·Last updated June 3, 2026

Tucson Electric Power (TEP) Rate Schedule Comparison

ScheduleTypeRateBest For
MGS-TOUCommercial TOU$40/mo + demand $11.33/$5.05 (summer on/off-peak) per kW; energy 12.41/6.75 cents20-300 kW businesses able to shift load off-peak
LGSIndustrial demand$950/mo + $19.97/kW demand; energy 1.72/1.43 cents (summer/winter)300-5,000 kW facilities with steady high load factor
LGS-TOUIndustrial TOUDemand $25.43/$12.54 (summer on/off-peak) and $21.24/$10.44 (winter) per kW300-5,000 kW facilities that can curtail on-peak demand
01

Market Overview

Arizona has not deregulated retail electricity. TEP provides bundled generation, transmission, and distribution service under tariffs approved by the Arizona Corporation Commission. Customers cannot select an alternative electricity supplier; rates are established through ACC rate proceedings.

Market Type
Partially Deregulated
Supplier Choice
Not Available

Need to pull your actual usage data to compare rates? See the Tucson Electric Power (TEP) Data Access Guide →


02

Current Rate Schedules

TEP's commercial and industrial customers are served on demand-based schedules. Verified current rates: Large General Service (LGS) carries a $950/month Basic Service Charge, energy charges of 1.72 cents/kWh (summer) and 1.43 cents/kWh (winter), and a $19.97/kW Demand Charge plus a seasonal Power Supply Charge (4.37 cents summer, 3.96 cents winter per kWh). Medium General Service Time-of-Use (MGS-TOU) carries a $40/month Basic Service Charge, summer on-peak/off-peak demand of $11.33/$5.05 per kW and winter $4.90/$4.17 per kW, and energy charges of 12.41 cents on-peak / 6.75 cents off-peak per kWh. All exclude the Purchased Power and Fuel Adjustment Clause (PPFAC). TEP filed a general rate case (Docket 25-0103) with new rates requested effective September 1, 2026.

Effective: June 3, 2026 · Full Tariff Book →

ScheduleTypeApplicabilityStructureRate
Medium General Service (MGS)commercialMedium-sized commercial and industrial customers with measured demand of at least 20 kW and below 300 kW.Monthly Basic Service Charge plus seasonal usage-based Energy Charge and a Demand Charge based on the greater of the highest 15-minute interval demand, the contract capacity, or 20 kW. See tariff sheet 211 for current cents/kWh and $/kW values.
Medium General Service Time-of-Use (MGS-TOU)commercialMedium-sized commercial/industrial customers (20-300 kW) able to shift load away from on-peak hours.Basic Service Charge $40/month. Demand Charge per kW: summer on-peak $11.33 / off-peak $5.05; winter on-peak $4.90 / off-peak $4.17. Energy Charge 12.41 cents on-peak / 6.75 cents off-peak per kWh. Plus seasonal Power Supply Charge. Excludes PPFAC. On-peak: 2-8 p.m. summer; 6-10 a.m. and 5-9 p.m. winter.
Large General Service (LGS)industrialMedium-to-large commercial and industrial customers with measured demand of at least 300 kW and below 5,000 kW.Basic Service Charge $950/month. Energy Charge 1.72 cents/kWh (summer May-Sept), 1.43 cents/kWh (winter Oct-Apr). Demand Charge $19.97/kW. Power Supply Charge 4.37 cents (summer) / 3.96 cents (winter) per kWh. Primary-voltage customers may qualify for a 20.6 cents/kW/month billing demand discount. Excludes PPFAC.
Large General Service Time-of-Use (LGS-TOU)industrialLarge commercial/industrial customers (300-5,000 kW) able to manage on-peak demand.Time-of-use demand-based schedule. Demand Charge per kW: summer on-peak $25.43 / off-peak $12.54; winter on-peak $21.24 / off-peak $10.44. Combined with energy and power supply charges per tariff. Excludes PPFAC.
Large Power Service Time-of-Use (LPS-TOU)industrialLargest industrial customers with demand at or above 5,000 kW.High-load-factor time-of-use demand schedule for the largest industrial loads. Specific charges published in the TEP tariff book (docs.tep.com); customers exceeding 5,000 kW twice in a rolling 12 months may be moved to this rate.

03

Rate Recommendations by Use Case

🏢

Mid-size commercial facility (office, retail) 20-300 kW

Evaluate MGS vs MGS-TOU based on load flexibility. If you can shift HVAC and equipment use away from on-peak hours, MGS-TOU rewards it.

Recommended:
MGS-TOUMGS

MGS-TOU's $40/month basic charge and lower off-peak energy (6.75 cents) reward load-shifting, while flat MGS suits inflexible loads.

Tips:
  • Pull hourly interval data from My Energy Usage to profile on-peak vs off-peak usage
  • Pre-cool before the 2-8 p.m. summer on-peak window
  • Stagger equipment startup to avoid coincident 15-minute demand peaks
Est. monthly: Varies by demand; demand charge $11.33/kW summer on-peak (MGS-TOU)
🏭

Industrial / large facility 300-5,000 kW

Compare LGS (flat $19.97/kW demand, very low energy) against LGS-TOU (higher on-peak demand but off-peak relief). High, steady load factor favors LGS; flexible load favors LGS-TOU.

Recommended:
LGSLGS-TOU

LGS's low energy rate (1.43-1.72 cents) and flat demand charge benefit high-utilization facilities; LGS-TOU benefits those that can curtail on-peak demand.

Tips:
  • Request primary-voltage service to capture the 20.6 cents/kW/month discount if eligible
  • Watch the LGS demand ratchet (75% of prior 11-month peak)
  • Use interval data and consider EDI 810 feeds for automated bill validation
Est. monthly: Demand-driven; LGS $950/mo basic + $19.97/kW
📊

Energy manager / multi-site portfolio

Centralize TEP data via CSV exports or EDI 810, and use the Usage Data Release Form to authorize an aggregator for automated collection across accounts.

Recommended:
LGSMGS-TOU

TEP lacks a public API, so EDI plus aggregator authorization is the most scalable path for portfolio data.

Tips:
  • Set up EDI 810 over FTP via Commercial Energy Solutions (520-745-3425)
  • Use one Data Release Form per account naming your aggregator
  • Budget for Fee No. 15 ($75/hour) on repeat manual requests
Est. monthly: No standard EDI fee; manual requests $75/hour after first/year

04

Historical Rate Trends

TEP reduced rates heading into the summers of 2024 and 2025 due to lower energy costs. The utility filed a general rate case (ACC Docket No. 25-0103) seeking to recover roughly $1.7 billion in recent grid investment, with new rates requested effective September 1, 2026 and an expected ACC decision in late 2026.

May 1, 2024

Summer rate reduction reflecting lower energy/fuel costs.

n/a

May 1, 2025

Further summer rate reduction driven by lower energy costs.

n/a

September 1, 2026

Requested effective date for new rates in the pending general rate case (Docket 25-0103) to recover ~$1.7B grid investment; pending ACC approval.

~+13% (residential proposed)

Overall trend: Near-term reductions (2024-2025) followed by a pending increase tied to the 2025-2026 rate case.

Next expected change: New rates from the 2025-2026 general rate case (Docket 25-0103) anticipated in late 2026; residential bills projected to rise around 13%, with C&I impacts to be determined in the proceeding.


05

Cost Optimization Strategies

Because demand charges dominate TEP C&I bills, the highest-impact strategies focus on reducing 15-minute peak demand and shifting load off-peak. Interval data from My Energy Usage is the key input for identifying peaks and validating savings.

Peak demand management

For: MGS, LGS (all demand-based C&I)

Demand charges are often 30-50% of a C&I bill; trimming peak kW yields proportional savings.

Stagger startup of large equipment and use the 15-minute interval data to flatten peaks, directly lowering the demand charge (e.g., $19.97/kW on LGS).

Shift load to off-peak (TOU)

For: MGS-TOU, LGS-TOU

Material savings for flexible loads; varies by usage profile.

On MGS-TOU/LGS-TOU, move discretionary load out of on-peak windows (2-8 p.m. summer). On-peak demand can be 2x off-peak (LGS-TOU $25.43 vs $12.54/kW summer).

Primary-voltage service

For: LGS primary-voltage customers

20.6 cents/kW/month on billing demand.

Customers taking service at primary voltage on LGS may qualify for a 20.6 cents/kW/month billing demand discount.

Demand response (SmartDR)

For: Large C&I/institutional

Quarterly bill credits (program paused 2026).

When SmartDR resumes, large C&I customers can earn quarterly bill credits for curtailing during peak events.

To implement these strategies, you need your 15-minute interval data. Learn how to download Tucson Electric Power (TEP) interval data →


06

Frequently Asked Questions

Can a commercial customer get automated billing data feeds from TEP?

Yes. TEP supports EDI 810 invoice transactions over FTP in ANSI X12 format. Enroll by contacting Commercial Energy Solutions at 520-745-3425, complete the trading partner agreement, and test before production. There is no separate monthly fee for standard EDI support.

How does a C&I customer download interval data for energy analysis?

Log in to My Energy Usage (https://www.tep.com/my-energy-usage/) or use the direct UsageDataDownload endpoint to export hourly kWh, on-peak/off-peak, and demand data as CSV. The first consumption/interval-history request per calendar year is free; subsequent written requests are charged at Fee No. 15 ($75/hour).

Does TEP support Green Button or a public API?

No. TEP does not offer standardized Green Button (ESPI/XML) or a public REST API. The My Energy Usage CSV export is the machine-readable equivalent, and Nectar can retrieve billing and interval data via the Usage Data Release Form — see docs.nectarclimate.com.

How does a third party (consultant, aggregator) access a customer's data?

The customer completes a Usage Data Release Form (https://www.tep.com/data-release-form/) specifying the third party, data scope, and time period. After TEP approval, the third party requests data referencing the authorization; delivery is typically 5-10 business days in CSV or PDF.

What does TEP charge for data requests?

The first consumption-history or interval-history request per calendar year is free. Subsequent requests are billed under Fee No. 15 of the Statement of Charges at $75/hour (effective September 1, 2023, ACC Decision No. 79065). Commercial customers can request a binding fee estimate in advance.

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