February 24, 2016 / Modified feb 24, 2016 8:19 p.m.

US Investigating Tucson Wholesale Electricity Prices

TEP, four sister companies and APS are at the center of inquiry.

Energy, Electricity, Money, Economy spot

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The Federal Energy Regulatory Commission wants to know if prices in Tucson's wholesale electricity market can be kept artificially high by a handful of companies.

The FERC ran recent filings by Tucson Electric Power, four sister companies, and Arizona Public Service through tests to see if that is possible.

“The tests here, the screens, ensure that when I come in to sell in your market, I’m not able to artificially drive up the price because so much of that market is being supplied by me,” said FERC spokesman Craig Cano.

The utilities failed the test, and that has prompted FERC to ask for further information. The companies have 60 days to provide data that proves they cannot keep prices in the market artificially high.

If the utilities are unable to do so, the commission will step in and set wholesale prices in the market based on what it costs to generate power.

"We think that we'll resolve the matter with no required changes to our business," said TEP Spokesman Joseph Barrios.

Barrios said regardless of outcome, residential and business customers' bills will not be affected.

He added that the inquiry is not whether the companies acted to keep prices high, but whether or not they could do so.

TEP and four the associated companies are owned by Fortis, Inc. of Canada. APS is based in Phoenix, and is owned by Pinnacle West Capital Corporation.

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