ACC Approves New Rates, Energy Efficiency Programs for TEP Customers

  TUCSON, Ariz.--(BUSINESS WIRE) June 11, 2013--The Arizona Corporation Commission (ACC) has approved new rates for Tucson Electric Power (TEP) customers that will take effect on July 1.  The new rates include TEP’s first base rate increase since 2008. Early this year, TEP and ACC staff entered into a settlement agreement that was endorsed by more than a dozen groups including representatives of customers, low-income residents, organized labor, homebuilders, advocates of energy efficiency and renewable energy and other interests. The new rates will allow TEP to recover costs of investments that have resulted in greater system reliability and improved safety performance.

“Nearly 20 parties were involved in settlement discussions and the majority of them signed on with their support,” said Paul Bonavia, Chairman and Chief Executive Officer of TEP and its parent company, UNS Energy Corporation (NYSE: UNS). “The settlement process was open, transparent and inclusive, satisfying many diverse interests.”

The average monthly bill of a residential customer with average usage of about 800 kilowatt hours (kWh) is expected to increase by less than $4.

“This modest increase will allow us to continue improving reliability and investing in our infrastructure, which delivers value, comfort and convenience to our customers every day,” Bonavia said. “Our new, simplified rate structure will help to reduce confusion and allow our customers to more easily choose the best rate options for their lifestyles.”

TEP’s new rate structure includes simplified time-of-use rates that allow customers to pay less for power at certain times of the day. Customers on some time-of-use rates and other rates will be automatically enrolled in new rate plans. Customers can level out their monthly bills by participating in TEP’s Budget Billing program.

Nevada Move Threatens Navajo Power Plant

By Ryan Randazzo The Republic | azcentral.com Tue Jun 4, 2013

The Navajo Generating Station in northern Arizona could be forced to close one of its three generators, curtail its operations or find other creative ways to handle the departure of California and Nevada utilities.

Arizona utilities are determined to keep the coal-fired powerplant operating for the inexpensive electricity it generates and the critical role it plays in pumping almost half of metro Phoenix’s municipal water supply from the Colorado River via the Central Arizona Project canal.

But the plant faces a variety of obstacles, from environmental upgrades to a desire by some of the utilities that own it to shift away from coal power.

Late Monday, Nevada lawmakers approved a plan for that state’s primary utility to move away from coal-fired power plants and replace that electricity, most likely with natural-gas burning plants and some renewable energy like solar.

NV Energy owns 11.3 percent of Navajo, and the plan would have the company out of the coal plant by 2019. It’s unclear what will happen with its share of the plant.

The other owners of Navajo include the U.S. Bureau of Reclamation, which uses its 24.3 percent ownership of the power to pump water through the Central Arizona Project; Salt River Project, which owns 21.7 percent and runs the plant; Arizona Public Service Co., which owns 14 percent; and Tucson Electric Power, which owns 7.5 percent.

The Los Angeles Department of Water and Power also owns a 21.1 percent stake, but is negotiating with SRP to get out of the plant by 2015. Buying the LADWP share would give SRP a 42.9 percent stake in the plant.

“Obviously the (remaining) owners are all motivated to stay in the plant,” said Mike Hummel, associate general manager and chief power system executive for SRP. “Navajo Generating Station continues to be a low-cost resource of benefit to our customers. We will work with them to figure out how to continue to operate the plant.”

Utilities Right to Seek Most Bang for Their Solar Buck

By James A. Hughes My Turn/azcentral.com Mon Jun 3, 2013 -- Arizona has some of the most progressive solar policies in the country. In just a few years, Arizona’s 15 percent Renewable Energy Standard and its favorable permitting policies have resulted in 1,097 megawatts of solar-generating facilities by the end of 2012, making Arizona second in the nation only to California.

This is enough power to meet the annual energy needs of more than 200,000 typical Arizona homes while removing 1.4 million metric tons of carbon dioxide emissions annually.

Arizona Public Service Co. was a solar pioneer long before it was fashionable, demonstrating solar plants that other utilities who were considering solar at the time would tour. As part of the renewable-energy standard, APS created AZSun, an innovative program that decreases system and ratepayer costs by allowing APS to select the site and the point of interconnection of larger-scale, lower-cost solar facilities.

Solar plants in Gila Bend, for example, take advantage of the area’s excellent solar radiation and available electric transmission.

All of APS’ customers receive a slice of this power and share in its cost. AZSun has emerged as a visionary, cost-effective model because it optimizes the value of solar on the grid and takes advantage of economies of scale.

Arizona’s solar-power facilities range in size from small, rooftop residential installations to large, utility-scale power plants that produce thousands of rooftop equivalents of power.

As an example, it would take about 5,500 residential rooftop installations to equal the output of a relatively modest 17-megawatt facility like APS’ Paloma PV project, constructed by First Solar in Gila Bend.