Tucson households are a step closer to paying more for electricity. Administrative Law Judge Julia Matter has issued a Recommended Opinion and Order in Tucson Electric Power's rate case recommending an overall net retail rate increase of 9.6%, which Arizona Luminaria reported would raise the average residential bill by about 11.2%.

Source: Arizona Luminaria via Tucson Daily Brief — Oct. 23, 2026

The recommendation, in Docket No. E-01933A-25-0103 dated October 20, 2026, is not the final decision. It goes to the five elected members of the Arizona Corporation Commission, who can accept, change or reject it. The commission is expected to vote on November 17, and exceptions to the recommendation are due October 30. If the commission approves it, the new rates could take effect as soon as December 1, Arizona Luminaria reported.

TEP originally asked the commission for a 13% increase — about $172 million a year in additional revenue. The utility later updated its proposal, and Attorney General Kris Mayes' office argued in testimony that an increase of about 4% would be appropriate. The judge's 9.6% overall figure sits between the two positions, with residential customers carrying a larger share, around 11%, according to Tucson Agenda's reading of the 345-page opinion.

Source: Tucson Agenda — Who wants to pay more for electricity?

What happens next

The rate decision lands in a crowded month for Tucson voters. On November 3 they also decide Proposition 421, the franchise agreement that would give TEP another 25-year deal to serve the city. Consumer Reports said it recently delivered more than 1,700 petition signatures from Arizona members asking the commission to reject large increases sought by TEP and Arizona Public Service, arguing that household electricity bills are rising too fast.