APS has been charging a punitive and discriminatory fee against residential rooftop solar customers for almost a year and AriSEIA has been fighting it every step of the way. Today we joined with the Solar Energy Industries Association and two individual ratepayers in filing for an appeal with the Arizona Court of Appeals.
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AriSEIA filed for reconsideration/rehearing today on the APS grid access charge and "legacy adjustment." These are two charges that uniquely punish solar customers for using less power from APS. The fee is currently ~$2.50 a month per customer, but APS has said it should be $88 a month per customer and the ACC has ordered them to increase it in their next rate case, which they plan to file this year. Applying for rehearing is a necessary step towards appealing to the Arizona Court of Appeals, which we plan to do on January 30th.
Arizona Corporation Commission Upholds APS’ Punitive and Discriminatory Fee on Rooftop Solar12/17/2024 FOR IMMEDIATE RELEASE
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. The Judge issued a recommended opinion and order (ROO) upholding APS' discriminatory fee on solar customers. The vote by the Commission is on Tuesday, December 17th at 9am. The ROO as drafted fails to resolve many of the underlying issues that prompted a rehearing in the first instance. The ROO is inadequate for the following reasons:
[1] Rehearing ROO at 22:8-9 and 30:20. [2] Id. at 16:7-9. [3] Id. at 39:10-13. [4] Decision No. 75859 at 174:17-19. [5] Rehearing ROO at 23:19-20. [6] Id. at 26:14-15. [7] Id. at 25:15-17. [8] Id. at 22:17-19. [9] Id. at 31:5-6. This is not a “keystone inquiry” and was not challenged by any party. What the Value of Solar decision says on this subject was covered extensively in the hearing. [10] Id. at 32:2-4. [11] Id. at 20:3-4. AriSEIA filed its second and final brief today opposing APS' discriminatory fee on all solar customers. The recommended opinion and order is expected this week, because the ACC has indicated it will be vote on on 12/17.
AriSEIA filed its first post-hearing brief in the APS rate case rehearing. In the original rate case, APS imposed a new fee targeted only at solar customers. AriSEIA asked for a rehearing, which was granted. AriSEIA filed a pre-hearing brief, available here, and also filed its first of two post-hearing briefs. The reply brief is due next week. A vote is scheduled at the Arizona Corporation Commission on 12/17/24.
The Judge in the APS rate case rehearing on the grid access charge fees imposed against all APS solar customers asked parties to submit briefs before the hearing on whether or not the fees are just and reasonable and discriminatory. Read AriSEIA's position at the link above. The hearing starts on Monday, October 28th.
AriSEIA filed rebuttal testimony of our expert witness, Kevin Lucas, rebutting the testimony of APS, IBEW, and Arizona Corporation Commission (ACC) Staff, all who support opposing new fixed fees on all APS solar customers. Read the full filing above. The hearing commences October 28th.
In a bold move, Arizona Public Service (APS) has moved to entirely exclude the testimony of the Arizona Attorney General and the Arizona Governor's Office from the rate case rehearing on its discriminatory charge on all solar customers. In so doing, APS also seeks to exclude most of the testimony of AriSEIA and Vote Solar. APS argues that any evidence used to create the solar charge is not to be examined in the rehearing, thereby rendering the entire process a sham. AriSEIA, Vote Solar, the Attorney General, individual ratepayers, and the Governor's Office through the consumer advocate (RUCO) have all filed in opposition.
Arizona, with its abundant sunshine, seems like a natural leader in solar energy. Yet, according to Autumn Johnson, an advocate for solar energy, the state is facing a significant decline in residential solar installations. Data from Ohm Analytics shows a 31% year-over-year drop in solar permits as of May 2024, marking the lowest level since 2021.
Economic and Policy Challenges Several factors contribute to this decline. High interest rates, currently above 8%, make financing solar systems more expensive, deterring potential customers despite the federal tax benefits available under the Inflation Reduction Act. Beyond economic barriers, state policies are also to blame. Arizona has reduced the export rates for excess solar energy, meaning homeowners are paid less for the energy they send back to the grid. Additionally, recent increases in fixed fees for solar customers, such as the grid access charge introduced by the Arizona Corporation Commission, have made solar less financially attractive. A Missed Opportunity While other states continue to support solar growth through net metering, Arizona's policies are pushing it in the opposite direction. Johnson points out the irony that Arizona, with over 300 sunny days a year, ranks only fifth in solar capacity nationally—a position that should be much higher given the state’s natural advantages. Looking ahead, Johnson is concerned about the state’s direction. With increasing political skepticism toward both residential and utility-scale solar projects, Arizona risks missing out on a significant economic opportunity. In a state where solar should be thriving, policy and economic barriers are holding it back, leaving the future of solar in Arizona uncertain. |
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