Trico’s mission is to make a difference in the communities we serve by providing our Members cost-effective and sustainable energy solutions. As a non-profit cooperative, “cost-effective” is not just a phrase, it is a commitment we make to our Members. We do our best to control the costs that can be controlled and manage the costs that cannot.

Over the last several years we have all experienced increased prices on everything from gas, to groceries, to housing. At Trico, we have seen similar cost increases in the equipment and materials we use to provide reliable energy. For example, since 2020 the cost of transformers and regulators has more than doubled, while wires and cable have gone up 7 percent.

Trico has also been expanding its portfolio of generation resources with a combination of traditional and renewable resources, power purchase agreements, and even Member-owned distributed resources. It is vital for Trico to invest in its grid to maintain reliable service, purchase adequate power generation and storage capacity to meet system needs, and recruit and retain high-achieving employees with a commitment to serving Trico Members. All of these efforts produce value for Members and they come with costs.

In October, Trico filed a Rate Proposal Application with the Arizona Corporation Commission (ACC). This is the method for utilities (including cooperatives) to change their rates in the State of Arizona. Trico’s last Rate Proposal was filed about nine years ago with the ACC, in 2015 (based on 2014 costs). That rate change was approved by the ACC in 2017. We have worked hard to control costs (and we will continue to do so), but it is now necessary and important for Trico to increase its rates.

Our current Rate Proposal is based on 2023 costs. As you might expect, costs have changed over the last nine years. To prepare for this Rate Proposal, we worked to forecast projected growth and costs, and the investments we would need to provide reliable service. We then completed a Cost-of-Service Study (Study) to determine what revenue was needed to support Trico’s operations. The Study is designed to identify what we need to recover in rates to cover our costs and produce a margin necessary for healthy continued operations.

Below is a summary of our Rate Proposal and the impact it will have. Please take a few minutes to read this article and check our website for more information. If you have any questions, please reach out to us.

Trico works hard to balance reliability, planning for the future, and excellent service with cost. As a non-profit cooperative, you (our Members) are the priority, and we will always be focused on providing you great value.

We will continue to keep you informed throughout the Rate Proposal process. Future articles in the Livewire will include updates, and you can visit Trico’s social media and website (www.trico.coop) for additional updates. We thank you for your support, and we look forward to continuing to serve you with cost-effective, sustainable, and reliable energy solutions.

Thank you for being a valued Trico Member.

Frequently Asked Questions

When will the rate changes go into effect?

The changes will not go into effect until approved by the ACC. We expect this will be in late 2025 or early 2026.

How will Trico’s proposed rates impact residential Members?

Residential Member rates will increase by 7.11%. This includes the change to the Customer Charge and surcharges described below. For the average Residential Member, this will mean an increase of around $9.97 per month.

We are also proposing that the Demand Side Management (DSM) and Renewable Energy Standard Tariff (REST) surcharges on your existing bills be eliminated and that costs of those programs be included in base rates. We made this change because our Members have told us they find surcharges confusing. This means the effective increase to rates is actually closer to 6.25% rather than 7.11%.

Is Trico increasing its monthly Customer Charge?

Yes, as proposed the residential Customer Charge will increase from $20 to $25. This charge helps to recover the fixed costs Trico must pay to maintain its system and cover the financing of its system.

The monthly service charge is designed to recover costs associated with providing ongoing service to Members through the minimum-sized facilities that would be installed, regardless of individual consumer capacity requirements. These costs include the ownership and maintenance of essential infrastructure such as poles, wires, transformers, and meters. Additionally, the charge covers recurring expenses related to Member Services, including Member Service Representatives (MSRs) and billing.

This charge does not include costs associated with energy consumption or with owning and maintaining infrastructure beyond the minimum system.

How will commercial rates be affected?

Trico has a variety of commercial rates and the changes vary by class. We will be sharing more information on commercial rates in future articles, meetings with Members, and on our website. Any commercial Members interested in meeting with one of our Commercial Account Specialists can contact us at 520-744-2944 ext. 1311.

Is Trico proposing changes to its Rules, Regulations and Line Extension Policy (RRLEP)?

Yes, Trico is proposing changes to make the RRLEP easier to read and more accessible to Members and Trico employees.

Are there changes to the service charges?

Yes. Regular hours service calls will increase from $50 to $125. After hours Meter Crew calls will increase from $70 to $175. After hours Service Crew calls will increase from $175 to $250. Meter testing costs will increase from $35 to $50. The late payment charge will increase from 1.25% to 1.50% per month. The intent is to better capture the actual cost of these services and have the Members who use these services cover the costs.