Tucson Residents Voice Concerns Over TEP Rate Hikes and Profits

State Attorney General Mayes questions recent rate increases and energy supply deal

Jan. 30, 2026 at 9:39pm

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Tucson residents expressed concerns at a recent town hall about the impact of Tucson Electric Power's (TEP) rising rates, its history of rate increases, and future plans like the Project Blue data center. State Attorney General Kris Mayes noted TEP's unprecedented rate hikes and robust profits, and is preparing to appeal the Arizona Corporation Commission's approval of an energy supply agreement between TEP and Project Blue developers.

Why it matters

Tucson residents are concerned about the affordability of electricity in their community, especially as TEP has seen significant rate increases and high profits in recent years. The state attorney general is taking action to scrutinize TEP's business practices and decisions that may negatively impact ratepayers.

The details

At a January 13th town hall hosted by State Attorney General Kris Mayes, a standing-room-only crowd voiced concerns about the impact of TEP's current rates, its record of rate increases, and future plans like the Project Blue data center. Mayes noted TEP's unprecedented series of recent rate increases and robust profits, with the utility reporting $288 million in annual profits for 2024. Mayes is preparing to appeal the Arizona Corporation Commission's approval of an energy supply agreement between TEP and the developers of Project Blue, and is questioning why intervenors like the City of Tucson weren't allowed to cross-examine during the December hearing.

  • At the January 13th town hall, residents expressed concerns about TEP's rates and plans.
  • TEP reported $288 million in annual profits for 2024.

The players

Kris Mayes

The Arizona State Attorney General who hosted the town hall and is preparing to appeal the Arizona Corporation Commission's approval of an energy supply agreement between TEP and the developers of Project Blue.

Tucson Electric Power (TEP)

The electric utility serving the Tucson, Arizona area that has seen significant rate increases and high profits in recent years.

City of Tucson

An intervenor in the December hearing on the energy supply agreement between TEP and Project Blue developers, who was not allowed to cross-examine during the hearing.

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What they’re saying

“TEP's annual profits for 2024 were $288M. Ms. Bronson highlighting $1.7M of community support funding (0.6% of profits) is enough to feed the chickens and the public relations.”

— Ronald Proctor (tucson.com)

What’s next

The State Attorney General is preparing to appeal the Arizona Corporation Commission's approval of the energy supply agreement between TEP and the Project Blue developers.

The takeaway

Tucson residents are voicing strong concerns about the affordability of electricity in their community, as TEP has implemented significant rate hikes and reported high profits in recent years. The state attorney general is taking action to scrutinize TEP's business practices and decisions that may negatively impact ratepayers.