The Arizona Corporation Commission Reverses Course on Solar Customers

FOR IMMEDIATE RELEASE

AriSEIA Responds to the Arizona Corporation Commission Vote Ending Solar Protections in Sulphur Springs Rate Case

Phoenix, Arizona — The Arizona Solar Energy Industries Association (AriSEIA) expressed deep concern today after the Arizona Corporation Commission (ACC) voted unanimously to approve changes to Sulphur Springs Valley Electric Cooperative’s (SSVEC) rate structure that dramatically roll back long standing consumer protections for solar customers in Cochise County.

In a 5 to 0 vote, the Commission approved SSVEC’s request to eliminate net metering for non residential solar customers effective immediately, end the ten year export rate lock for new residential solar customers, and terminate twenty year grandfathering for existing commercial solar systems. The Commission also approved the creation of punitive and discriminatory interconnection fees that apply only to solar customers. The only issue the Commission rejected was a component that would have violated federal law.

These decisions overturn years of established policy. Grandfathering protections were upheld in the original Value of Solar decision, in SSVEC’s last rate case, in the 2023 Resource Comparison Proxy review docket, and in the Trico rate case decided just last month. The Commission also had previously affirmed the ten year export rate lock and the principle that avoided cost is the lawful floor for export rates.

The Commission also declined to require SSVEC to evaluate virtual power plant programs or other modern Demand Side Management innovations that other utilities across the state are actively adopting. These programs reduce peak demand, improve reliability, and lower system costs, yet SSVEC will not be required to even study them.

In addition, the Commission voted not to require SSVEC to reimburse the documented underpayment to residential solar customers in 2023, when the cooperative paid an export rate below its own calculated avoided cost. That payment level was not only contrary to federal requirements under the Public Utility Regulatory Policies Act (PURPA), but also contrary to SSVEC’s Plan of Administration and the Value of Solar decision.

“For years, the Commission has emphasized the importance of regulatory certainty for businesses and consumers,” Autumn Johnson, Executive Director of AriSEIA. “That certainty was abandoned today. Decisions that were reaffirmed again and again were reversed without new evidence and without any demonstration that circumstances had changed. Customers who made investments based on Commission rules are now being told those rules no longer apply.”

AriSEIA will continue to advocate for fair, lawful, and transparent rate design and for policies that support customer choice, reliability, and innovation across all Arizona utilities.

Media Contact:
Autumn Johnson
Executive Director, AriSEIA
[email protected]
www.ariseia.org