The Arizona Corporation Commission has reportedly decided to revisit the contentious issue of additional fees levied on solar panel users within the Arizona Public Service territory, following a public outcry and legal challenge. The legal examination, slated to occur on Monday, will scrutinize whether the "Grid Access Charge" could potentially be readjusted or even deemed discriminatory toward customers who have installed solar panels. This surcharge was initially approved by the Arizona Corporation Commission back in February and has since affected approximately 165,000 residences with solar panels, adding about $2-3 a month to their bills. This information comes from investigative work by ABC15 Investigator Anne Ryman, as the issue was brought to light after she received several complaints from affected customers.
In a move that has sparked considerable debate, the Arizona Corporation Commission voted 4-1 to apply what has been called a discriminatory fee, which will reportedly impose a 15% higher increase on rooftop solar customers compared to other users. Starting March 8th, this will come atop a general rate increase that is expected to impact all Arizona Public Service customers. According to insights from ABC15, the average user could see an increase of roughly $10-12 a month, in addition to the specific solar user surcharge.
While the decision has fueled criticism, it's noteworthy that the same Arizona Corporation Commission meeting led to unanimous approval for the pilot of a Virtual Power Plant program. AriSEIA, an advocate for solar, storage, and electrification industries in Arizona, supported the VPP initiative, expressing that it allows battery-equipped customers to alleviate grid strain during peak periods by sharing battery capacity with Arizona Public Service. This collaborative effort is aimed to help in avoiding the construction of new power resources, as pointed out in a statement obtained by AriSEIA. Moreover, the Arizona Corporation Commission made strides in other areas based on AriSEIA's recommendations, including prohibiting APS from competing in the microgrid space and revising on-peak hours for certain storage tariffs.
Ongoing debates underscore the tension between regulatory decisions and their impact on customers—as well as the solar industry at large. "Yesterday was a challenging day for solar in Arizona," said Autumn Johnson, Executive Director of AriSEIA, who also emphasized the broader significance of Arizona's solar sector which involves over 8,250 jobs and contributes an annual $1.5 billion to the state's economy. The sentiment appears to be that the newly imposed fee could potentially deter, rather than encourage, the adoption of solar energy in a state widely recognized for its sunny disposition. AriSEIA has announced plans to file a Motion for Reconsideration on the solar fee and aims to actively engage with Arizona Public Service on the VPP program's implementation.
Arizona's solar customers and industry stakeholders look forward to the Arizona Corporation Commission public hearing, offering an opportunity to voice their opinions in person at 1200 W. Washington St. in Phoenix at 10 a.m., via telephone by calling 1-877-309-3457 and entering participant no. 801972877##, or online, where comments can be submitted by referencing Docket No. E-01345A-22-0144. This platform may serve to influence the direction of solar energy policy and pricing in the state in the coming months and years.
