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Rural Electric Power Line Extension Policy Reinstated for Tucson Electric Power (TEP) -- APS Not Yet

By
Real Estate Agent with Realty ONE Group Mountain Desert DRE #SA554748000

This announcement was made by the Arizona Association of REALTORS®. The owners of rural property in Arizona are being helped by the reinstatement of the line extension policy for Tucson Electric Power (TEP). 

This week the Arizona Corporation Commission voted in a 4-1 decision to reinstate free power-line extension to new customers within 500 feet of Tucson’s Electric Power Companies distribution system. This decision comes after much uproar from Arizona residents after the long standing “line extension” policy was eliminated for Tucson Electric Power (TEP) and UniSource Electric (UNS Electric) in 2008. To note, in 2007 the Arizona Corporation Commission eliminated a policy of more than 50 years that required Arizona Public Source (APS) to extend power lines at no cost to any development within 1,000 feet and up to $25,000. The reversal of all three of these policies left many landowners with unforeseen costs that reduced the value of their properties.

The Arizona Association of REALTORS® witnessed firsthand the negative impact the reversal of these policies had on our members and homeowners throughout the state. As a result, AAR has worked diligently with members of the public, stakeholders and Commissioners to revert to the pre-2007 line extension policies, for TEP, UNS Electric and APS. As many will recall, we were successful in our endeavors this past January when the Corporation Commission voted 3-2 to reinstate the line extension policy for UniSource Electric, which serves customers in Western Arizona. In regards to APS, we continue to inch closer to a resolution as it pertains to reinstating a line extension policy under a rate case filed last month.

The reversal of Tucson’s Electric Power Co. 500 feet free line extension policy should take full effect in 30 days and will allow those with uncompleted contracts to come back in and benefit from the new rules.

In Yavapai County and in other parts of the State of Arizona served by APS, we still need to wait for the line extension policy to be reinstated. We will watch this closely.

The reinstatement of the power line extension policy should increase the value of properties that are near existing power lines.

 

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