Arizona Solar Users Facing Monthly Fee Hike: Advocates Slam Rate Increase

The Arizona Corporation Commission has recently given the green light to a rate hike proposed by Arizona Public Service Co., affecting around 1.4 million customers in the state. This decision means that residential customers can expect to see their average monthly bill go up by $10 to $12, starting in March. However, the real kicker comes for those with rooftop solar systems, who will be hit with an additional fee of $2.50 to $3 per month. The move has sparked controversy and criticism, with calls for a reevaluation of the decision.

Commission Chair Jim O’Connor and his three Republican colleagues went ahead with the approval without having a clear picture of the exact impact on customers, citing a ballpark figure of about 8%. While some argued for a delay to gather more precise data, O’Connor felt the margin of error was too small to postpone the decision. This lack of detailed information has drawn ire from groups like the Arizona Public Interest Research Group Education Fund, who are urging the commission to demand utility executives to testify under oath about the rate hike’s projected effects.

The rate case, which has been ongoing for close to two years, has seen involvement from various parties, including labor unions, citizens’ groups, renewable energy advocates, and public schools. Arizona Public Service Co. defends the rate increase as essential for maintaining reliable service across a significant portion of the state. Commissioner Lea Marquez-Peterson, while expressing reservations, ultimately supported the plan, emphasizing the importance of allowing APS to invest in infrastructure upgrades.

Michael O’Donnell, a vice president at Sunsolar Solutions, condemned the commission’s decision to impose an additional charge specifically targeting solar customers, a move he deemed “truly outrageous.” He highlighted that solar panel owners already contribute an average of $80 per month to remain connected to the grid. The utility argues that solar customers do not cover the full costs of the services provided to them, with the bulk of expenses going towards infrastructure maintenance rather than energy production.

The approved rate structure will impact different customer classes in varying ways, with schools and small businesses among those likely to feel the effects. The controversy surrounding the rate hike underscores the challenges of balancing the interests of utility companies, consumers, and advocates for renewable energy sources in the ever-evolving energy landscape of Arizona. As the dust settles on this decision, the repercussions for customers and the energy sector at large remain to be seen, leaving many stakeholders closely monitoring the situation.