APS files request to increase grid access charge for solar customers in Arizona

Apr 10, 2015 -- MarketLine

Arizona Public Service, or APS, has filed a request with the Arizona Corporation Commission to increase the grid access charge established by the Commission in November 2013 from 70 cents per kW, or approximately $5 per month, to $3 per kW, or around $21 per month, for future residential solar customers.

Existing rooftop solar customers would be grandfathered under the agreements they originally signed.

In its 2013 decision, the ACC found that the existing pricing model for rooftop solar customers was "defective" and "unfair" to non-solar customers. Commissioners concluded that a monthly charge of $3 per kilowatt would be "reasonable" to cover the cost to operate and maintain the electric grid, but decided to move carefully, begin with a smaller charge of 70 cents per kilowatt and monitor the issue. The ACC anticipated that adjustments might need to be made before the next APS rate case, when it can consider comprehensive rate design. The APS request simply asks the ACC to now implement its 2013 decision.

The APS proposal would not fully resolve the cost shift and is intended to be an interim solution until the issue is addressed in the next APS rate case or another proceeding.

"The growth of rooftop solar doesn't lessen the need for the grid," said APS Chairman, President and CEO Don Brandt. "In fact, it's just the opposite. The continued growth of rooftop solar depends on a modern grid that supports the two-way flow of electricity, accommodates the highly variable nature of solar power while maintaining reliability and backs up solar power with fast-starting, flexible conventional power sources."

If the Commission approves the request, future APS customers who choose rooftop solar will still save about 10 cents per kilowatt-hour of solar they produce.

Solar customers also have an option to enroll in the Combined Advantage rate plan, an existing plan open to all APS residential customers that includes time-of-use pricing with a demand charge. The demand charge helps pay for the grid and gives customers control because the charge is tied to a customer's energy usage during peak hours. Customers who add solar and enroll in this rate plan are not subject to the grid access charge.

News Provided By