Tucson Electric Power Company Section 206 Market-Based Rate Investigation
Summary
FERC instituted a Section 206 proceeding against Tucson Electric Power Company, UNS Electric, Inc., and UniSource Energy Development Company to investigate whether their market-based rate authority in the Tucson Electric balancing authority area is just, reasonable, and not unduly discriminatory. The refund effective date is set to the Federal Register publication date of April 9, 2026. Interested parties have 21 days from the order date (April 3, 2026) to file interventions in Docket No. EL26-55-000.
What changed
FERC issued an order on April 3, 2026, instituting a formal Section 206 investigation to examine whether Tucson Electric Power Company, UNS Electric, Inc., and UniSource Energy Development Company's market-based rate authority in the Tucson Electric balancing authority area remains justified. The refund effective date is April 9, 2026, establishing the baseline for any potential refunds. Interested persons have 21 days from the order issuance to intervene pursuant to Rule 214 (18 CFR 385.214).
Affected parties including the utilities, their customers, and market participants should prepare interventions and relevant evidence. If FERC finds rates to be unjust, unreasonable, or unduly discriminatory, refunds may be required and market-based rate authority could be revoked or modified. This proceeding signals FERC's continued scrutiny of market-based rates in the Western interconnection.
What to do next
- File notice of intervention or motion to intervene by April 30, 2026 in Docket No. EL26-55-000
- Review market-based rate authority exposure and potential refund liability
- Monitor FERC eLibrary for subsequent orders and evidentiary filings
Penalties
Potential refunds may be ordered if FERC determines current rates are unjust, unreasonable, or unduly discriminatory
Archived snapshot
Apr 9, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Notice
Tucson Electric Power Company; UNS Electric, Inc.; UniSource Energy Development Company; Tucson Electric Power Company: Notice of Institution of Section 206 Proceeding and Refund Effective Date
A Notice by the Federal Energy Regulatory Commission on 04/09/2026
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- Public Inspection Published Document: 2026-06860 (91 FR 17965) Document Headings ###### Department of Energy
Federal Energy Regulatory Commission
- [Docket No. EL26-55-000] On April 3, 2026, the Commission issued an order in Docket No. EL26-55-000 pursuant to section 206 of the Federal Power Act (FPA), 16 U.S.C. 824e, instituting an investigation to ( printed page 17966) determine whether Tucson Electric Power Company, UNS Electric, Inc. and UniSource Energy Development Company's market-based rate authority in the Tucson Electric balancing authority area is unjust, unreasonable, unduly discriminatory or preferential, or otherwise unlawful. Tucson Electric Power Company, 195 FERC ¶ 61,008 (2026).
The refund effective date in Docket No. EL26-55-000, established pursuant to section 206(b) of the FPA, will be the date of publication of this notice in the Federal Register.
Any interested person desiring to be heard in Docket No. EL26-55-000 must file a notice of intervention or motion to intervene, as appropriate, with the Federal Energy Regulatory Commission, in accordance with Rule 214 of the Commission's Rules of Practice and Procedure, 18 CFR 385.214 (2025), within 21 days of the date of issuance of the order.
In addition to publishing the full text of this document in the Federal Register, the Commission provides all interested persons an opportunity to view and/or print the contents of this document via the internet through the Commission's Home Page (http://www.ferc.gov) using the “eLibrary” link. Enter the docket number excluding the last three digits in the docket number field to access the document. From FERC's Home Page on the internet, this information is available on eLibrary. The full text of this document is available on eLibrary in PDF and Microsoft Word format for viewing, printing, and/or downloading. To access this document in eLibrary, type the docket number excluding the last three digits of this document in the docket number field. User assistance is available for eLibrary and the FERC's website during normal business hours from FERC Online Support at 202-502-6652 (toll free at 1-866-208-3676) or email at ferconlinesupport@ferc.gov, or the Public Reference Room at (202) 502-8371, TTY (202) 502-8659. Email the Public Reference Room at public.referenceroom@ferc.gov.
The Commission strongly encourages electronic filings of comments, protests and interventions in lieu of paper using the “eFile” link at http://www.ferc.gov. In lieu of electronic filing, you may submit a paper copy. Submissions sent via the U.S. Postal Service must be addressed to: Debbie-Anne A. Reese, Secretary, Federal Energy Regulatory Commission, 888 First Street NE, Room 1A, Washington, DC 20426. Submissions sent via any other carrier must be addressed to: Debbie-Anne A. Reese, Secretary, Federal Energy Regulatory Commission, 12225 Wilkins Avenue, Rockville, Maryland 20852.
For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, contact the Office of Public Participation at (202) 502-6595 or OPP@ferc.gov.
Dated: April 6, 2026.
Carlos D. Clay,
Deputy Secretary.
[FR Doc. 2026-06860 Filed 4-8-26; 8:45 am]
BILLING CODE 6717-01-P
Published Document: 2026-06860 (91 FR 17965)
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