TEP

Tucson Electric Power:

A comprehensive look at maximizing savings


The short explanation.



The longer explanation.





Above are videos we made comparing TEP's primary rate plans:


#1) Basic (kWh)


#2) TOU  (kWh w/peak hours)


#3) Peak Demand (kWh + kW w/peak hours)


Below are graphics detailing the first two plans: #1) Basic (flat kWh charges w/ zero peak hours), #2) TOU (kWh w/peak hours). You're currently on of these two plans. As you can see, these plans are, although different regarding peak hours, fundamentally the same in that they only bill for usage over time (kWh) and do so at an average of 15 cents and 16 cents (+/- 2 cents/kWh), respectively (including taxes and charges). Built into that (kWh) charge, however, is the equivalent of a roughly 6-7 cent (+/- 2 cents/kWh), respectively, assumption for (unmanaged) demand (kW). Wouldn't you rather enjoy your kWh at 8 cents and then only pay for the kW you actually use? IF managed, that kW can be kept around the equivalent of 2 cents/kWh. When added to the aforementioned 8 cents/kWh (for actual kWh) you instead pay 10 cents/kWh total. If paying 10 cents/kWh instead of 15-16 cents/kWh sounds desirable then scroll past these expensive plans (below) to review TEP's third plan.

Below is TEP's third plan, the one you want to be on if maximizing savings is your goal.


#3) Peak Demand


On this plan, your kWh rate drops to less than half of what you're paying now and you only get charged for the demand (kW) you use between 2-8 p.m. during summer and 6-9 a.m & 6-9 p.m. during winter instead of TEP assuming your demand (kW) is consistently as high as it could possibly be as they do on the plan you're on now, be it #1) Basic or #2) TOU.


FYI - If you take this plan but don't pair it with a demand manager, your bill will, at best, stay about the same as it is now, and you will, at worst, incur a higher bill resulting from atypically high unmanaged demand (TEP bills monthly demand on that month's highest average demand in a 60 minute window during peak demand hours).


This is where the Better Box comes in. It intelligently manages your demand (kW) to remain reliably low so you can fully take advantage of TEP's lowest rates on electricity by adding a low kW charge to a low kWh charge (lowest in TEP) and ultimately pay exponentially less.

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