APS - Net Metering Cost Shift Solution

Case Information:

On Friday, July 12, 2013, Arizona Public Service Company ("APS" or the "Company") filed an application(link is external) ("Application") with the Arizona Corporation Commission ("ACC" or "Commission") seeking approval of a net metering cost shift solution.  APS stated in its filing that, as a result of net metering, residential customers with rooftop solar do not pay for most of the electric services that they use.  These costs are then paid by other customers through higher rates-who can’t install or don’t want rooftop solar. According to APS, this shifting of costs is unfair.  APS went on to say that the problem is growing with every solar installation, and needs to be addressed now before it becomes too large to fix with a balanced solution.

APS is proposing that distributed energy policy be updated and requests that the Commission:

• Select either the Company's net metering option or its bill credit option, as described in the Company's Application, as the net metering construct for which residential customers installing new distributed energy will be eligible;

• “Grandfather” the use of current net metering rules by existing and immediately pending distributed energy customers as described in the Company's Application; and

• Approve the continued use of direct cash incentives to new solar customers in the form of upfront cash incentives to ensure flexibility and transparency.

APS’ proposal pertains to residential customers only.  Net metering would continue for commercial and industrial customers in its current form.