Tucson Electric Power

What Tucson Electric Power does

Tucson Electric Power (TEP) is a privately held, regulated electric utility founded in 1892 that delivers electricity to approximately 457,000 residential, small business, large commercial, industrial, and data center customers across 1,155 square miles of southern Arizona, primarily in Tucson and Pima County. The company owns and operates more than 2,000 miles of transmission lines, 2,500 miles of distribution lines, and over 100,000 power poles, supported by a generation mix that includes coal, natural gas, solar, wind, and battery storage resources. TEP is a subsidiary of UNS Energy Corporation, which is in turn owned by Fortis Inc. (TSX: FTS), a Canadian publicly traded utility holding company with a $28.8 billion 2026-2030 capital plan and a Fortis-level target of coal-free generation by 2032 and net-zero emissions by 2050.

TEP's core product is regulated electric service, layered with a modular portfolio of customer-facing digital tools (My Account portal, TEP Mobile App with Nest/ecobee integration, My Energy Usage tracker), demand-response programs (Smart Rewards, Defeat the Peak), solar offerings (GoSolar Shares, Rooftop Solar), EV charging incentives, billing flex products (Budget Billing, Auto Pay, e-bill), and an online TEP Marketplace powered by AM Conservation. The company has also piloted integration with Elexity for coordinated building load control and approved the ConnectDER IslandDER device for faster residential solar, battery, and EV charging installations. Customer operations are enabled by automated metering infrastructure providing hourly interval data over a wireless network.

TEP earns revenue primarily through regulated electricity distribution rates set by the Arizona Corporation Commission, combining fixed Basic Service Charges with usage-based kWh charges that vary seasonally (higher May-September) and by time-of-use or demand-based plan selection. In its 2026 rate case TEP requested a 12.6% rate increase (approximately $162 million in additional annual revenue) to recover $1.7 billion of infrastructure investments made since 2021, and is also pursuing an Annual Rate Adjustment Mechanism. The company has separately negotiated economic development rates for large industrial customers, including a flagship agreement to supply up to 350 MW to the Project Blue data center complex (Beale Infrastructure) scheduled to come online in 2027, and is participating alongside APS and SRP in a six-month nuclear siting study that could open a future generation pathway.

Name

Tucson Electric Power

Legal name

Tucson Electric Power

Website

https://tep.com

Company type

Private

Founded year

1892

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Tucson Electric Power is a regulated electric utility serving approximately 457,000 residential, commercial, industrial, and data center customers across 1,155 square miles in southern Arizona. It is a subsidiary of UNS Energy Corporation, owned by Canada's Fortis Inc.

Ownership category

akta.pro rank

Product category

Regulated Electric Utility

NAICS

Electric Power Generation, Transmission and Distribution (2211), Electric Power Transmission, Control, and Distribution (22112), Electric Power Distribution (221122)

SIC

Electric Services (4911)

akta.pro primary industry

Public Power Districts & State/Provincial Utilities (EUADABAD)

akta.pro secondary industries

High-Voltage Electrical Systems (Switchgear, Transformers, Protection & Control) (EUAEAFAA), Medium/Low-Voltage Power Distribution (MCCs, Panels, UPS, Grounding) (EUAEAFAB)

Keywords

• Electric utility services
• Regulated electricity distribution
• Power transmission
• Residential electricity supply
• Commercial industrial power

Headquarters

HQ city

Tucson

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Infrastructure, Personnel, Supply Chain, Operations, Technology or R&D, Marketing or Sales

Revenue model

1. Electric Distribution Service: TEP generates revenue through regulated electricity distribution to 457,000 customers across residential, small business, large business, and industrial segments. Revenue is derived from fixed charges and usage-based fees for delivery services, power supply, and various surcharges approved by the Arizona Corporation Commission.
2. Generation and Power Supply: Revenue from generating or purchasing electricity for customers through various resource types including coal, natural gas, solar, wind, and battery storage. Power supply costs are recovered through usage-based kWh charges that vary seasonally (higher summer rates May-September) and by time-of-use periods for enrolled customers.
3. Economic Development Rates: Special rate arrangements for large industrial customers including data centers, negotiated through regulatory proceedings to support economic development and job creation in the service territory.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels7 records

Core offering

Tucson Electric Power is a regulated electric utility that generates, transmits, and distributes electricity to approximately 457,000 customers across 1,155 square miles in southern Arizona. The company serves residential, small business, large commercial, and industrial customers through more than 2,000 miles of transmission lines and 2,500 miles of distribution lines, supported by a portfolio of coal, natural gas, solar, wind, and battery storage resources.

Product overview

Tucson Electric Power provides a comprehensive electricity distribution platform serving approximately 457,000 customers across southern Arizona. The core offering is electric service (residential, commercial, and industrial), supplemented by a modular portfolio of add-on programs and tools. Customer-facing digital products include My Account online portal, TEP Mobile App, and My Energy Usage tracking tool. Energy management programs include Smart Rewards, Defeat the Peak demand response, and various pricing plan options with time-of-use and demand-based rates. Solar programs include GoSolar Shares and Rooftop Solar offerings. Billing flexibility products include Budget Billing, Auto Pay, and TEP e-bill. Customer assistance programs encompass Payment Assistance, Lifeline discounts, Weatherization Assistance, Safety Net, Medical Device Alert, and HEERO donation program. The TEP Marketplace, powered by AM Conservation, offers discounted energy-saving products. EV charging programs and Clean Energy Tracker round out the service portfolio.

Differentiator

Problem solved

Functional benefit

Products and services

• Electric Service (Residential, Business, Industrial) Core regulated electricity distribution service delivering power to residential, commercial, and industrial customers across TEP's exclusive service territory in southern Arizona.
• GoSolar Shares Subscription program allowing customers to purchase shares of locally generated solar power at 150 kWh per share monthly to offset conventional energy use, with shares exempt from Renewable Energy Standard Tariff and PPFAC surcharges.
• Smart Rewards Program Demand response program offering a $50 prepaid Mastercard reward to customers who help reduce energy use during periods of high energy demand.
• Defeat the Peak Community demand response program encouraging customers to make small shifts in energy usage during peak demand times to improve grid reliability and sustainability.
• Rooftop Solar Programs Programs supporting residential and commercial rooftop solar installations including net metering, interconnection services, and solar rebates.
• Smart EV Charging Program Program offering rebates and incentives for commercial, multi-family, and community electric vehicle charging infrastructure.
• Project Blue Data Center Energy Supply Large-scale dedicated electricity supply arrangement for Beale Infrastructure's Project Blue data center complex, including ratepayer protections such as a three-year line of credit requirement and minimum 75% capacity usage clause.
• Electric Vehicles Programs Suite of residential EV programs including rebates, charging station incentives, and educational resources supporting transportation electrification.

Quantifiable outcome

• Record company reliability performance in 2025 with significantly fewer outage minutes than national averages
• +1 more outcomes

Named customers3 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration6 records

Feature3 records

Partnerships

Seven partnerships are on record, tiered core, minor, flagship and pilot.

• Arizona Public Service and Salt River ProjectcoreStrategic or Co-development Partner · 25 June 2026Arizona's three largest electric utilities (APS, SRP, and TEP) are proceeding with a six-month preliminary nuclear siting study to identify candidate locations for potential future reactor development, including retired coal plant sites. The study uses a phased screening methodology to evaluate sites for technical, financial, and regulatory feasibility before potentially pursuing Early Site Permit applications with the Nuclear Regulatory Commission. Both small modular reactors and large-scale designs remain under consideration.
• Coal Transition Community OrganizationsminorOthers · 9 April 2026TEP along with APS and SRP awarded grants to five organizations serving communities impacted by coal plant closures, including Apache County Emergency Management, Joseph City Unified School District, Alliance for Navajo Broadband, St. Johns Unified School District and City of St. Johns, and St. Johns regional Chamber of Commerce. This was the eighth and ninth rounds of the Utility Grant Funding Program launched in 2023 with combined $1 million pledge.
• ConnectDERcoreTechnology or Integration · 15 January 2026ConnectDER received approval from Arizona's three largest utilities including TEP for its IslandDER device, enabling faster installation of at-home solar, battery backup, and EV charging. The device integrates multiple components into one compact unit that can be installed in 15-30 minutes without additional electrical work, potentially saving homeowners thousands in main panel upgrade costs. Arizona ranks third nationally for residential solar capacity.
• Beale InfrastructureflagshipStrategic or Co-development Partner · 4 December 2025Arizona Corporation Commission approved energy supply agreement under which TEP will provide electricity to Project Blue data center complex on Tucson's far southeast side. The agreement includes ratepayer protections such as a three-year line of credit requirement and minimum 75% capacity usage clause. Project scheduled to go online in 2027.
• ElexitypilotTechnology or Integration · 22 October 2025TEP partnered with Elexity on a 10-building pilot project demonstrating integration of building management systems with solar, battery, and controllable loads coordinated through utility price signals. Coordinated load control delivers 2-4X the cost savings of standalone battery solutions.
• AM ConservationminorChannel Partner/ Reseller/ DistributorTEP Marketplace is offered in partnership with AM Conservation, allowing customers to browse and purchase energy-efficient products online including smart thermostats, ENERGY STAR lighting, air cleaners, humidifiers, dehumidifiers, and smart home devices at competitive prices.
• Community Assistance AgenciesminorChannel Partner/ Reseller/ DistributorTEP cooperates with multiple community agencies to provide emergency bill payment assistance including Low Income Home Energy Assistance Program (LIHEAP), Wildfire-administered Home Energy Assistance Fund, Interfaith Community Services, Pima County Community Action Agency, Salvation Army, and others.

Scale indicators10 records

Recent moves6 records

Expansion highlights7 records

Direct peers

• UNS Energy Corporation: Direct parent company of TEP, also based in Arizona and serving gas and electric customers in the same region. UNS Energy holds TEP and other Arizona utility operations under Fortis Inc.
• Salt River Project (SRP): One of Arizona's largest utilities serving the Phoenix metro area, also regulated in Arizona and jointly participating with TEP and APS in the nuclear siting study and coal transition community grant programs. Operates as a public power utility with similar product offerings.
• El Paso Electric: Regulated electric utility serving a similar customer count (~450,000) in the Texas/New Mexico border region, providing a near-comparable in scale, business model, and desert Southwest climate exposure. Recently acquired by Infrastructure Investments Fund for ~$4.4B.
• Arizona Public Service (APS): Arizona's largest investor-owned electric utility, also regulated by the Arizona Corporation Commission. APS is TEP's closest direct peer, sharing the same regulatory jurisdiction, joint participation in the nuclear siting study, and similar customer mix across Arizona.

Broad incumbents

• Fortis Inc. Parent company of TEP (via UNS Energy), a Canadian publicly traded utility holding company with $28.8B 5-year capital plan and 10 regulated electric and gas utilities across North America. Provides capital allocation and strategic context for TEP's growth trajectory.

Regional players

• NV Energy: Vertically integrated regulated electric utility serving Nevada with similar exposure to desert Southwest climate, data center load growth (major hyperscaler customers), and renewable transition dynamics. Operates in a neighboring state with comparable regulatory structure.
• Public Service Company of New Mexico (PNM Resources): Vertically integrated regulated electric utility serving New Mexico with similar customer base size and renewable transition exposure. Comparable as a mid-sized Southwest US utility facing similar regulatory and resource-planning dynamics.
• Southwestern Public Service Company (Xcel Energy): Subsidiary of Xcel Energy operating in Texas/New Mexico with similar regulated utility model, renewable transition exposure, and customer scale comparable to TEP. Comparable as a multi-jurisdictional Southwest utility.
• Imperial Irrigation District: Public power district serving Southern California with similar desert Southwest exposure, regulated utility model, and renewable resource mix. Comparable as a mid-sized utility with irrigation district structure in a neighboring geography.

Others

• ConnectDER: Technology partner whose IslandDER device was approved by TEP for faster residential solar, battery backup, and EV charging installation. Adjacent ecosystem participant enabling distributed energy resource integration for TEP customers.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xx.com/TEPenergy
• YouTubeyoutube.com/user/TucsonElectricPower
• Facebookfacebook.com/TucsonElectricPower
• LinkedInlinkedin.com/company/tucson-electric-power
• Instagraminstagram.com/tucsonelectricpower
• TikToktiktok.com/@tucsonelectricpower

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Tucson Electric Power