Tucson Electric Power changes its mind on net metering

June 22, 2015 | By Barbara Vergetis Lundin

Later this year, Tucson Electric Power (TEP) will file a request for new 2017 rates. The proposal will include fair-market pricing for the excess energy produced by rooftop solar arrays, incorporating the revised net metering plan it proposed earlier this year for new users of rooftop solar power systems.

Tucson, Arizona. Credit: Daquella Manera/Wikimedia Commons

"We'll be proposing rates that recover our service costs more equitably, allowing us to expand our use of solar energy while preserving reliable, affordable electric service for everyone," said David G. Hutchens, TEP president and CEO.

Current net metering rules provide TEP's solar customers with bill credits worth roughly 11 cents per kilowatt-hour (kWh) for the excess energy their systems produce -- nearly twice as much as TEP pays for energy from large solar arrays, increasing costs ultimately shouldered by other customers.

Under TEP's revised net metering proposal, the utility would purchase excess output from rooftop arrays for the same price it pays for power from community-scale systems, which is currently around 5.8 cents per kWh. The plan would offer a fair price for excess energy while reducing the cost of solar energy for all customers, who ultimately pay for net metering incentives and other costs TEP incurs to provide service.

"Our customers shouldn't have to overpay for excess energy from rooftop arrays when less expensive, more reliable solar options are available," Hutchens said. "We can expand our community's solar energy resources far more quickly and sustainably through more cost-effective options."

TEP relies on larger, local community-scale resources for affordable solar power and helps individual customers secure solar energy for themselves through the Bright Tucson Community Solar Program and the new TEP Residential Solar Program.

"Our solar strategy is simple: get more solar energy for our customers' dollar," said Hutchens. "Paying more means getting less, and we believe our community wants more solar, not less."

The proposed net metering change would not affect customers who have solar power systems already or those whose requests to connect new solar arrays to TEP's grid were submitted by June 1, 2015. TEP intends to include that same proposal in its upcoming rate filing, though the Arizona Corporation Commission ultimately will determine what changes, if any, will affect current or future users of solar power systems.

For more:
- see this background article

http://www.fierceenergy.com/story/tucson-electric-power-changes-its-mind-net-metering/2015-06-22