Tepera asked for $1.8 million during Wednesday's hearing and the team argued for $1,525,000.
A decision by arbitrators Mark Burstein, Howard Edelman and Edna Francis is expected Thursday.
Tepera, a 31-year-old right-hander, was 5-5 with a 3.62 ERA last year. He was on the disabled list between June 27 and July 15 with right elbow inflammation.
He earned $574,700 last year and was eligible for arbitration for the first time.
Seven players remain scheduled for hearings through Feb. 15.
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