Tucson Electric Power (TEP) commercial electricity rates in Arizona

• Average commercial price, 202514.77¢per kWh, all commercial customers
• vs Arizona average+19%state commercial average 12.45¢
• Commercial customers42,0593rd largest of 14 in Arizona
• Average use3,903 kWha month per commercial customer
• Average bill$576a month per commercial customer
• Since 2015+18%from 12.57¢ per kWh
• Outages42 mina year per customer · US average 124

Tucson Electric Power (TEP) is an investor-owned utility serving 2 counties in Arizona. Among the 14 Arizona utilities in EIA’s 2025 sales data with 500 or more commercial customers, it is the 3rd largest, with about 12% of the state’s commercial customers. EIA lists it as Tucson Electric Power Co.

Tucson Electric Power commercial electricity prices, 2015 to 2025

In 2015 Tucson Electric Power billed its commercial customers an average of 12.57¢ per kWh. In 2025 the figure was 14.77¢, so it rose 18% over 10 years. The average for all commercial customers in Arizona rose 20% over the same period. The highest year was 2024, at 15.58¢. Between 2024 and 2025 it fell 5.2%.

Average use and average bill are the utility’s commercial sales and revenue divided by its commercial customers and by twelve. The bill is an all-in figure: energy, delivery, demand and fixed charges together. A few very large customers pull both averages up, so most businesses use and pay less than the average.

Residential, commercial and industrial prices at Tucson Electric Power

In 2025 the average commercial price at Tucson Electric Power was 0.7% below the residential figure and 62% above the industrial one. Larger customers take power at a higher voltage and use it more steadily, so at most utilities the average falls from residential to commercial to industrial. Which class an account falls in is the utility’s decision, and the line between commercial and industrial is drawn differently from one utility to the next.

How Tucson Electric Power’s commercial rates are set

Tucson Electric Power is investor-owned, so its rates are set in cases before the Arizona Corporation Commission and published in a tariff, which is a public document. A commercial account is billed on a rate schedule, chosen by the size of the account and the voltage it takes power at, and a schedule usually combines a fixed monthly charge, a charge per kWh and, above a certain size, a demand charge on the highest rate of draw in the month. The schedule code is printed on the bill. There is no competitive supply market for ordinary commercial accounts in Arizona, so the levers are the schedule, the peak and the amount used.

Meters, time-varying rates and net metering at Tucson Electric Power

EIA counts 41,535 commercial meters at Tucson Electric Power in 2025, and 41,468 of them (more than 99%) are advanced meters (AMI), which record use at least hourly and report it to the utility at least daily. Of the rest, 67 are standard meters. An advanced meter is what makes interval data possible, and interval data is what shows when a building’s peak demand happens.

At Tucson Electric Power, 2,769 commercial customers were on a time-varying rate in 2025, about 6.6% of its commercial customers. A time-varying rate charges more in some hours than in others, so when a business uses power matters as well as how much. The kinds Tucson Electric Power reports offering commercial customers are time-of-use pricing.

EIA records 1,191 commercial net-metered generating systems at Tucson Electric Power in 2025, with 163 MW of capacity between them: about 28 for every 1,000 commercial customers. Net metering credits a customer for power its own system sends to the grid; the terms are in the utility’s tariff.

How reliable is Tucson Electric Power’s electric service?

Tucson Electric Power customers went without power for an average of 42 minutes in 2025, excluding major storms, with about 0.65 interruptions per customer. The average across U.S. utilities reporting the same way is 124 minutes. These are averages over every customer of every class, so they describe the system and not any one street.

Where Tucson Electric Power serves

EIA records Tucson Electric Power serving customers in 2 Arizona counties: Cochise, Pima. A county can be shared between utilities, so this does not tell you who serves a given address. The utility that serves an address is the one named on its bill.

EIA lists Tucson Electric Power as its balancing authority, the body that keeps supply and demand matched minute by minute across the area.

Other utilities in Arizona

The average each billed its commercial customers in 2025. The Arizona page has the state’s own figures and every utility with 500 or more commercial customers.

• APS (13.45¢)
• SRP (10.85¢)
• UniSource Energy Services (16.10¢)

What these figures can and cannot tell you

• They are averages over every commercial customer. A utility whose commercial customers are mostly large averages fewer cents per kWh than one serving mostly small shops, so a lower figure can mean larger customers and not a lower rate.
• They are not a rate schedule. None of these figures is a charge printed in Tucson Electric Power’s tariff, and nothing here works out a bill from one. The tariff index lists the utilities whose filed schedules are quoted on this site.
• They are annual and final. EIA publishes utility figures once a year. The Arizona page carries the state’s trailing 12 months, which is more recent and still preliminary.

For one building, the cost estimator gives a range by building type, size and state, and price by utility sets every utility side by side. Commercial vs residential vs industrial compares the classes in every state.

Data: every year of these figures, for this utility and every other with a page, is in one CSV, free to use with credit to the U.S. Energy Information Administration and this site. To cite this page: Tucson Electric Power commercial electricity rates, CommercialElectricityRates.com, from EIA Form EIA-861 final 2025 data.

Common questions about Tucson Electric Power

What is the average commercial electricity rate at Tucson Electric Power?

Tucson Electric Power billed its commercial customers in Arizona an average of 14.77¢ per kWh in 2025, according to the U.S. Energy Information Administration. That is 19% above the Arizona commercial average of 12.45¢. It is the utility’s commercial revenue divided by its commercial sales, so it describes the whole class and is not the rate on any one schedule.

How much is the average commercial electric bill at Tucson Electric Power?

About $576 a month in 2025, on average use of about 3,903 kWh a month. That is Tucson Electric Power’s commercial revenue divided by its 42,059 commercial customers. A few very large accounts pull the average up, so most businesses pay less than this.

Have Tucson Electric Power’s commercial electricity rates gone up?

The average Tucson Electric Power billed commercial customers rose 18% between 2015 and 2025, from 12.57¢ to 14.77¢ per kWh. The Arizona commercial average rose 20% over the same period.

How reliable is Tucson Electric Power’s electric service?

Tucson Electric Power customers averaged 42 minutes without power in 2025, excluding major storms, against a 124-minute average for U.S. utilities reporting the same way (EIA).

Does Tucson Electric Power use smart meters for businesses?

EIA counts 41,468 advanced (AMI) meters among Tucson Electric Power’s 41,535 commercial meters in 2025, which is more than 99%. An advanced meter records use at least hourly, which is what makes interval data and time-varying rates possible.

Is this the rate my business will pay Tucson Electric Power?

No. It is an average over every commercial customer, from a corner shop to a campus. What one business pays depends on its rate schedule, how much it uses and how hard it draws at its peak. The schedule code is printed on the bill, and the schedule itself is in Tucson Electric Power’s tariff.