Arizona Corporation Commission Upholds APS’ Punitive and Discriminatory Fee on Rooftop Solar

FOR IMMEDIATE RELEASE
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Contact: Autumn Johnson
520-240-4757
[email protected]

Phoenix, AZ: Today, the Arizona Corporation Commission (ACC) voted to uphold a fee on all Arizona Public Service (APS) solar customers. APS has nearly 200,000 solar customers, all of whom are paying 15% more than the rate increase approved for all residential customers this year. The ACC upheld the fees after granting a rehearing on this issue at the request of AriSEIA, Vote Solar, and the Arizona Attorney General’s Office. The ACC refused to consider key evidence in the record.

In January, the ACC surprised stakeholders by inserting a “grid access charge” into APS’ nearly completed rate case. AriSEIA argued the fee should be removed from the rate case decision, which was unheeded by the ACC. Therefore, AriSEIA and others immediately filed for reconsideration/rehearing, which was granted. After nearly a year of litigation, the ACC upheld the original decision after a number of abnormalities in the execution of the case, such as constraining the evidence to be considered, moving the hearing earlier after APS requested more time for adequate customer notice, an abbreviated briefing scheduled, and then scheduling the vote before the recommendation was even written.

​AriSEIA demonstrated at the hearing that based on a quantitative analysis of several national expert witnesses, APS had miscalculated the cost of service to solar customers. That miscalculation reflected that solar customers were not paying their fair share, when in fact, the inverse is true. Solar customers pay more than they should and actually subsidize non-solar customers.

APS testified that if the ACC eliminated the solar fees, the difference would be $.25 to residential customers. Despite the evidence, the ACC will penalize solar customers several dollars per month and approved an amendment to increase it in APS’ next rate case, which is anticipated to be filed in 2025.

“The evidentiary record makes it clear that solar customers are subsidizing non-solar customers and yet APS and the ACC continue to penalize solar customers with unfounded and discriminatory fees,” said Autumn Johnson, executive director of AriSEIA.

An appeal to the Arizona Court of Appeals is likely in 2025.