Wikimedia Commons/Jakupica
Wikimedia Commons/Jakupica
Tucson Electric Power Company (TEP) will join the Western Energy Imbalance Market by April 2022 at the latest.
According to Tuscon News, TEP estimates that the union would allow ratepayers to save $13 million annually. The Western Energy Imbalance Market allows members to meet variations in customers' power use. This is done to coordinate with the power output of solar and wind resources.
"TEP's participation will create opportunities for cost savings that will be passed along to customers every month," said company spokesperson Joe Barrios.
TEP is estimated to save $10 million in wholesale power costs within the first year of its participation and $13 million annually starting 2023.
However, the company wants to save some of its initial savings to cover operating costs. TEP asked to retain almost $10 million of revenues over the initial three years to cover costs till 2024. Afterward, revenues would pay by themselves for ongoing operations.
Alerts Sign-up