SRP votes to impose new fees on solar customers, SolarCity fights back
March 1, 2015 | By
Jaclyn Brandt
Salt River Project (SRP) has voted to impose charges on new solar customers, while at the same time giving their current customers a break from charges -- at least for now. However, the move appears to bring the company one step closer to the threat of a lawsuit. SolarCity threatened to sue SRP for implementing the new charges, alleging the company is attempting to remove customers' choice of how they receive electricity. "Customers are smart," said SolarCity CEO Lyndon Rive in a letter to the SRP board. "A 96 percent drop in demand is compelling evidence that the price plan is an unabashed penalty on customers who want to go solar and a deliberate effort to stop new solar installations in SRP's territory. Customers know the new plan leaves them with no real choice. As a result, solar workers in SRP territory face serious uncertainty as to how long they will be able to earn a living." SRP's move also included a rise in rates for residential electric customers. According to SRP, the 3.9 percent increase was originally supposed to go into effect in April, but the board agreed to reduce that number to 3.3 percent until April 2016. The agreed-upon rise in rates comes out to around $3.85 in April 2015, and around $4.60 in April 2016. The board also approved a plan for new solar customers -- as of Dec. 8, 2014. According to SRP, "The new price plan is intended and was designed that these rooftop solar customers -- who choose to purchase less energy from SRP but still use and rely on the electric grid around the clock -- pay their share of costs to maintain and improve the grid." SRP's board also agreed to add a $50 charge for new solar customers -- which will help pay for the utility's power infrastructure. They will also defer an increase for existing solar customers to 20 years, instead of their original plan of 10 years, as well as dropping a new charge on buyers of new solar homes. "SRP will continue to support solar energy by seeking low-cost alternatives that provide maximum financial and reliability benefits for all of our nearly 1 million customers," said Mark Bonsall, SRP's general manager and chief executive officer. "Grandfathering continues this support for our existing solar customers, but the new price plan ensures that the cost shift to our 985,000 non-solar customers will not grow." SRP first announced plans for a rate increase on solar installations in December, and SolarCity said that plan was an attempt by the company to destroy the solar market. SolarCity's letter to the SRP board continued, saying they have "made all necessary preparations to file suit." Rive added, "We will not stand idly by while SRP entrenches its monopoly." For more: © 2015 FierceMarkets, a division of Questex Media Group LLC. All rights reserved. |