AZ Grid Access Charge Eliminated

On October 25th, TWW argued against Arizona's grid access charge expansion in the Arizona Corporation Commission's electric resource planning process for APS.

TWW engaged on the issue because a review of the record in the APS rate case lacked specific evidence to support the charge to rooftop solar customers that APS was seeking. TWW argued that the Commission owed it to Arizonans to ensure that customers only pay necessary fees and charges that are supported by the evidence.

The very nature of a ratemaking case gives a utility a process and opportunity to introduce evidence in support of the charges that it seeks. In this case, APS had the time and opportunity to introduce evidence into the record in support of a charge to rooftop solar customers-a charge that it has long suggested is justified.

The Western Way acknowledges that there may be an increased cost to serve solar customers. However, APS did not introduce any evidence indicating what the cost is. As such, the Commission has no way to determine the basis for the charge for which APS is seeking approval or whether such a charge is an accurate reflection of the costs of distribution generation, indeed, the Commission does not actually have any way to determine whether there is a cost to APS associated with distributed generation at all.

The Recommended Opinion and Order is clear that the Commission does not have sufficient information in the record to reach a conclusion about the costs that rooftop solar customers cause to the grid. In the absence of actual evidence of costs necessary to justify the charge, it is inappropriate for the Commission to require Arizonans with rooftop solar to continue to pay the Grid Access Charge every month.

On October 27th the ACC voted to eliminate the fee.