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The Arizona Corporation Commission (ACC) approved on November 25, 2008 a revised set of Rules and Regulations that govern how Tucson Electric Power (TEP) does business. The new rules took effect December 1, 2008, and it is important that you know how the changes will impact your projects.

Summarized below are the major changes that impact new service and line extensions:

New Policy — Service Lines and Establishments

  • When establishing new single-phase or three-phase service, the standard Secondary Service Charge is $640.00.
  • For a single-phase service, this includes the wire from the transformer or pedestal to the house and the meter.
  • All Secondary Service Charges are payable prior to TEP scheduling the establishment of service, and are nonrefundable.

New Policy — Line Extensions

  • TEP will begin charging for the entire length of a line extension (previously, the first 500 feet were free of charge).
  • Single-phase line extensions will be billed at a rate of $18.00 per foot.
  • Three-phase line extensions will be billed at a rate of $64.50 per foot. An additional transformer charge will be assessed if a new transformer is required to provide service. The additional charge is $6,956.00 for transformers 500 kVA and under, and $16,275.00 for transformers over 500 kVA.
  • Underground feeder extensions will be billed at $51.00 per foot. An additional $20,500.00 PME charge will be assessed per PME.Overhead feeder extensions will be billed at $36.00 per foot.
  • All line extension charges are payable at the time that the line extension agreement is executed, and are nonrefundable.

Those customers, developers, or subdividers that executed a contract within the six month grace period must arrange for TEP to install and energize the extension and service facilities within 18 months from the date of their agreement or application.

All existing approved line-extension agreements and service applications will be “grandfathered” under the former policy, as long as those customers arrange for TEP to install and energize the extension and service facilities by May 28, 2010 (within 18 months from the effective date of the new Rules and Regulations).

If you have questions about the new Rules and Regulations, please call (520) 917-8733 or e-mail anabustamante@tep.com.



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