FOR IMMEDIATE RELEASE
Contact: Autumn Johnson (520) 240-4757 [email protected] Phoenix, AZ – Arizona Public Service (APS) is once again advocating for a tax on all solar customers in its service territory. APS seeks a fee increase that amounts to a tax on APS’ nearly 200,000 solar customers where they pay 15% more than all other residential customers. The Arizona Corporation Commission (ACC) recently ruled that this solar tax increase was enacted without proper public notice and deprived parties of due process and ordered a rehearing to fix these important constitutional issues. The Arizona Solar Energy Industries Association (AriSEIA) has opposed this discriminatory solar tax that raises costs for families all over Arizona. AriSEIA asked the ACC to reconsider the APS rate case to evaluate the fairness of this fee and cure due process deficiencies. The ACC granted AriSEIA’s rehearing request, but APS has since fought to exclude approximately 74,000 solar customers on “Legacy Rates” from the rehearing and has fought to limit the evidence the ACC can even consider in determining if the fee is legal. Today the ACC issued a decision siding with APS on these two issues. This decision means that there will not be a fair hearing on this new solar tax and that hundreds of thousands of Arizonans that invested their hard-earned money in solar will not be treated fairly. “APS has proven time and again that they will always take whatever actions they can to try and penalize solar customers,” said Autumn Johnson, Executive Director of AriSEIA. “APS fights against rooftop solar for one reason: money. When customers exercise their right to install solar, APS has less justification to build new powerplants that they earn a profit on. Solar customers use their own money to add energy to the grid and reduce peak energy demand, saving all customers money. And these customers increasingly also install batteries that provide APS with power at the exact moment they need it most. Yet, APS, time and again, seeks to hurt solar customers at every opportunity.” The ACC is conducting another hearing in November about these new APS-backed solar taxes that only impact solar customers. It is unclear from the decision today whether or not that hearing will resolve any of the legal concerns of AriSEIA or solar customers, which led to the request for a rehearing in the first place. More information can be found in Docket No. E-01345A-22-0144. About AriSEIA: The Arizona Solar Energy Industries Association (AriSEIA) is the State’s leading trade association dedicated to promoting the adoption of solar, storage, and electrification technologies. AriSEIA advocates for policies that support the growth of Arizona’s solar industry and provides resources and education to ensure that solar energy continues to thrive in the State.
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ACC Staff filed a unusual motion this week seeking to arbitrarily restrict the scope of the APS rate case rehearing for no legitimate reason. AriSEIA filed again explaining that the reasons for rehearing apply to all not just some solar customers and that without the cost of service study, you would have absolutely no basis to charge solar customers more than everyone else for the same thing. Therefore, all solar customers and the cost of service are part of the rehearing.
The Arizona Corporation Commission (ACC) granted rehearing of the APS rate case because it surprise added a new fixed fee on solar customers that was never a part of the case in the final order. Since then, APS has been trying to narrow the scope of the rehearing, no matter how illogical. First, APS has tried to argue that only some solar customers are part of the rehearing, despite the fact the added charges apply to all solar customers. Then APS has tried to argue that the cost of service study upon which the charges are based is not part of the rehearing. AriSEIA has opposed both maneuvers.
APS has attempted to limit the rate case rehearing to only some solar customers. The Arizona Corporation Commission (ACC) ordered a rehearing on the solar only charge that APS is currently imposing on all solar customers. However, APS has said that the charge being imposed on legacy solar customers is outside the scope of the rehearing. AriSEIA filed asking the judge to clarify to APS that all solar customers are part of the rehearing. The fee cannot only be discriminatory to some solar customers and not others.
AriSEIA filed a request with the Arizona Corporation Commission (ACC) to stop APS' new grid access charge, which is a fixed fee just on solar customers that was unsubstantiated in the last rate case and is the subject of a rehearing this fall. AriSEIA does not think APS should be permitted to charge a fee that was unsupported by the record, is likely discriminatory, and is subject to a new hearing.
AriSEIA was granted a rehearing on the grid access charge (a discriminatory fee on solar), which was imposed in the most recent APS rate case. This fee charges a new flat fee on all solar customers in APS service territory with no substantive basis in the record. Therefore, a rehearing was granted. APS is seeking to defend this discriminatory fee on solar is also trying to rush the rehearing, so that parties like AriSEIA cannot build the record against the charge. Therefore, we proposed our own schedule. The administrative law judge will take up this matter on Friday.
AriSEIA filed a motion to the ACC to reconsider the APS rate case, specifically the higher charge to solar customers. The basis of our argument is that the fee is arbitrary and capricious, discriminatory, and a violation of our due process.
FOR IMMEDIATE RELEASE
Contact: Autumn Johnson [email protected] 520-240-4757 Phoenix, AZ - Yesterday, the Arizona Corporation Commission (ACC) voted 4-1 to impose a new and discriminatory fee on rooftop solar customers in APS service territory. The new fee imposes a 15% greater increase on solar customers, over and above the rate increase that all customers will see starting on March 8th. The fee will show up on most customers' bills as a "grid access charge" and will be approximately $2-3 a month in addition the the rate increase everyone will get of approximately $10-12 a month, per APS. AriSEIA opposed the fee and offered an amendment to eliminate it from the rate case, which was not adopted. AriSEIA championed a Virtual Power Plant (VPP) program that was adopted 5-0 as a pilot program to commence next year. This program will save all ratepayers money, by allowing customers with batteries to opt in and share their battery capacity with APS when there is high demand on the grid, thereby limiting the need to build new, replacement resources. The ACC also voted 5-0 to prohibit APS from competing with private industry in the microgrid space and voted 5-0 to correct on-peak hours for a commercial storage tariff called E-32 L SP, both upon AriSEIA's request. AriSEIA's request to stop disproportionately negative impacts from increased demand rates over energy rates on the E-32 M and E-32 L rate plans was not adopted. "Yesterday was a challenging day for solar in Arizona. In a state with more than 300 days of sunshine, almost 400 solar companies that employ more than 8.250 people and contribute more than $1.5 billion to the state annually, we should be looking at ways to foster the sector, not penalize it. An unsubstantiated and discriminatory fee on solar customers is a step in the wrong direction," said Autumn Johnson, Executive Director of AriSEIA. AriSEIA plans to file a Motion for Reconsideration on the solar charge and will engage with APS on the VPP program implementation. AriSEIA is the state's solar, storage, and electrification trade association. It is the only trade association in the state that focuses on all scales of solar at every level of government, doing both regulatory and legislative work, and has boots on the ground. Arizona Corporation Commission is making a big bet against solar energy
Last week, the Arizona Corporation Commission (ACC), which regulates most of the state’s utilities, voted to start the process to roll back Arizona’s energy efficiency and renewable energy standards. This is remarkably negative: to my knowledge, this would make us the first state to completely do away with these standards. As executive director of the Arizona Solar Energy Industries Association (AriSEIA), I am deeply concerned about what this signals to our industry in the sunniest state in the country. Climate is one of the state’s “Five Cs,” and the sun is Arizona’s greatest natural resource. To date, our state has done commendable work harnessing its power for the benefit of all Arizonans. We rank fifth in the nation for total installed solar capacity, and sixth for total solar jobs, with more than 8,000 workers employed in Arizona’s solar economy. Our state has installed enough solar panels to power more than 1 million homes, and our solar market is valued at $17.3 billion. Solar power provides 10% of Arizona’s electricity. Despite antagonism from our legislature and the ACC, Arizona Public Service (APS) is targeting 100% clean energy by 2050 and 65% clean energy by 2030. Tucson Electric Power (TEP) has a goal of net zero by 2050, with an interim goal to reduce carbon emissions by 80% by 2035. Arizona’s current renewable energy target of 15% by 2025 is a far cry from Nevada’s and New Mexico’s goals of 50% by 2030. If the ACC is successful in repealing even this comparatively modest target, clean energy companies may stop doing business in the state, or companies that have made commitments to only use clean energy might think twice about setting up shop here. Rolling back our energy efficiency and renewable energy standards would send a clear message to these companies: take your business and your jobs elsewhere. To make matters worse, the ACC is poised to vote next week on a new fee for residential rooftop solar customers in APS territory. The new fee applies a 15% increase on rooftop solar customers in addition to the increase all customers will endure after next week’s vote on the APS rate case. This will result in approximately an additional $3- to $4-charge just to solar customers. APS did not ask for this increase; it was unilaterally proposed by the ACC. We are facing an inflection point. We can continue to welcome investment from solar power and renewable energy more broadly, bringing jobs, cost savings, and environmental benefits across the state. Or we can follow the path the ACC is laying out for us and shun the economic benefits of the clean energy transition. If we go down that path, our neighboring states will out-compete us for clean energy investment. Nevada just made headlines for hosting the Super Bowl at Allegiant Stadium, the first NFL stadium to be powered by 100% renewable energy. We should be making headlines for innovation like this, instead of regressing. The ACC is playing political games they think will help them in November. However, if they were listening to the people of the state, they would know that three-fourths (74%) of Arizonans are supportive of more solar power. Unlike oil and gas, the sun and wind are unlimited natural resources. Not only are they the least costly form of energy; they’re also going to get cheaper over time. In fact, the costs of solar and wind power in the state are projected to drop by 22% and 34%, respectively, over the next 30 years. Under the Inflation Reduction Act, Arizonans can get tax credits to cover 30% of the cost of installing solar panels. Investing in renewable energy means energy independence and freedom from volatile oil and gas prices. It means cost savings on utility bills. Investing in clean energy also means new good-paying jobs for Arizonans—with more than 13,000 jobs and $10 billion in investment announced in our state since 2022. This is what we stand to lose if we turn our backs on clean energy. After the ACC releases its new draft rules, there will be a public comment period. Before that comment period begins, the public can also share their feelings on the new solar charge in the APS rate case by calling (602) 542-4251 or contacting the commissioners via email. Tell them to vote no on the new solar charge in Docket No. E-01345A-22-0144. Its passage will mean a dimmer future for all Arizonans. ***MEDIA ADVISORY***
Contact: Autumn Johnson 520-240-4757 [email protected] Thursday, Feb. 22 press conference: Arizona Solar Advocates Call on the ACC to Vote NO on a New Discriminatory Solar Charge Phoenix, Arizona – On Thursday, February 22 at 8:30 a.m, Arizona Corporation Commission (ACC) stakeholders and solar advocates will hold a press conference to call on the ACC to vote no on a brand new charge being targeted only at APS customers with solar. APS has proposed to increase rates for all of its customers by 13%. This significant increase comes on the heels of a 2023 rate hike caused by APS’s overreliance on natural gas that increased the average residential customer’s bill by $145 annually. The ACC has now proposed that solar customers rates be increased by 15% more than everyone else. This will result in an additional fee of $3-4 a month per solar customer in addition to the 13% overall rate hike. This discriminatory fee was proposed in the final stage of a multi-year rate case proceeding, and there has been no testimony or briefing addressing the fee or opportunity for the public to comment on it. Multiple parties have called on the ACC to eliminate the solar-specific fee when they vote on the rate case on February 22nd. At the press conference, speakers will describe how local rooftop solar helps to reduce grid costs and protect ratepayers from skyrocketing gas prices, the solar fee the ACC has proposed, and the impact such a discriminatory fee will have on ratepayers and the solar industry in Arizona. Who:
When: Thursday, February 22, 2024 8:30 AM MST Where: Arizona Corporation Commission 1200 W. Washington Street Phoenix, AZ 85007 Interviews: Speakers will be available for questions following the press conference. ### |
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