APS, ACC disagree on net metering

October 4, 2013 | By Barbara Vergetis Lundin

The Arizona Corporation Commission (ACC) is recommending the rejection of two Arizona Public Service Company (APS) net metering proposals. A recommendation from the Arizona Corporation Commission staff calls for the rejection of two Arizona Public Service Co. alternatives to deal with how solar customers are compensated for producing excess energy. The ACC report contends that the current net metering structure is not fair for all customers and must be changed.

A solar home in Arizona. Credit: APS

For example, the report contends that, "with increasing levels of DG (distributed generation) penetration, the potential of shifting costs from customers with DG systems to those customers without such systems becomes apparent. As more customers offset a portion of their monthly bills by using energy produced by their DG systems, they purchase less energy from the utility. Because residential rates are typically designed to recover much of the utility's fixed costs through volumetric energy rates, DG customers effectively pay less of these fixed costs."

But Arizona is not unique in this regard, as several other states have seen a rapid penetration of customer-sited distributed generation. APS sees this as an opportunity to move forward with productive discussions on the best solution for customers; however, the ACC's recommended alternatives don't go far enough to fix the fairness issue, according to APS.

A statement issued by the company said, "We stand by our initial proposal and we look forward to working with the commissioners, staff and other stakeholders on developing the right solution for our customers. We need to act now. This issue will get worse for customers and harder to solve the longer we wait to address it."

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http://www.fierceenergy.com/story/aps-acc-disagree-net-metering/2013-10-04