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APS Gives Up Fight for Higher Solar Rates - For Now
APS Gives Up Fight for Higher Solar Rates — For Now
Arizona Public Service Co. said Friday it will put off its quest to raise rates on solar customers until its rate hearings begin next summer if regulators will proceed with a study to determine whether residential customers subsidize those with solar panels.
The five elected Arizona Corporation Commissioners approved a fee of about $5 a month in late 2013, which remains in place.
The request to increase it was met with heavy opposition from the rooftop solar industry.
"Unfortunately, what should have been a relatively simple decision-making process has been turned into political theater by attacks and distortions from rooftop solar leasing companies that seek to paralyze Arizona regulators," APS spokesman Jim McDonald said in a prepared statement.
Robert Robb, The Republic | azcentral.com 4:47 p.m. MST September 22, 2015
The rooftop solar industry, with former commissioners Bill Mundell and Renz Jennings acting as front men, is trying to get Doug Little and Tom Forese disqualified from hearing the request by Arizona Public Service to increase the solar grid fee.
Their attorney, former Tempe Mayor Hugh Hallman, is a clever fellow. But in this case, he’s being too clever by half. According to the legal theory being advanced, no one who was elected to the Arizona Corporation Commission in 2014 could hear this case. And not because of anything they did. But because of the actions of others outside their control.
In 2013, the commission concluded that net metering, in which utilities pay residential solar rooftop owners a retail rate for excess power, resulted in a cost shift to other customers. So, it imposed a small fee to offset the shift.
APS has asked for an increase in the fee, and for one to be imposed in a separate proceeding rather than as part of a larger rate case. The commission voted 3-2 to consider doing that. Little and Forese, elected to the commission in 2014, were in the majority.
APS is widely believed to be a significant source of the funding for these campaigns, which have not disclosed their donors. APS has not denied being the source.
But how much of the funding, if any, APS provided is unknown. According to the legal claim, that doesn’t matter. APS is widely perceived to be the source. Little and Forese have to share that perception. So, they can’t be objective when considering APS’s request.
An independent expenditure campaign cannot be coordinated with that of the candidates. Little and Forese ran for the office and won. Now, they cannot discharge the responsibilities of the office because of something someone else did beyond their control?
Many customers and even SRP board members were confused when April bills included a jump in the basic service charge to $20 from $17. It has since fallen back to $18.50 a month but will be $20 again next year, according to SRP.
SRP’s board of directors approved a 3.9 percent rate increase in February, along with new fees for solar customers. Managers said that they also approved the basic service fee increase of $3 for April, but many people attending the meeting did not hear it that way.
They heard SRP General Manager Mark Bonsall discuss a “phase-in” of the increase, and were surprised when the $3 increase quickly showed up on their bills.
"The current level is $17," Bonsall told the board at a public meeting before it voted in February. "What we're suggesting is a phase-in, if you will, is to go to $18.50 beginning in this summer period, which is May through October of this year, and then when the winter season starts later this year, going to the full $20. Beyond that point in time, it would remain at $20."
SRP Partners with BaseLayer to Showcase New Data Center Concept
SRP Partners With BaseLayer to Showcase New Data Center Concept
Ryan Randazzo, The Republic | azcentral.com 10:51 p.m. MST August 26, 2015
As people increasingly use the Internet for everyday functions, from shopping to social media, banking and even fitness apps on their phones, the need grows for massive data centers to handle all that information.
Salt River Project and a recently formed company called BaseLayer are unveiling a new concept this week in Gilbert that they hope can ease the demands on the power grid as data centers expand proliferate.
They are opening a prototype SRP DataStation, a modular data center connected directly to utility infrastructure, ensuring reliable power without expanding the electric grid.
Data centers are rapidly expanding as companies and consumers increase their use of the Internet. Metro Phoenix is a popular place for data centers because of its low instance of natural disasters and relatively inexpensive power.
They represent about 2 percent of the power used in the U.S. today and could grow to 20 percent in the next 15 years.
Arizona Utility Regulators Seek Legal Advice on Dark Money
Arizona Utility Regulators Seek Legal Advice on Dark Money
Ryan Randazzo, The Republic | azcentral.com 6:08 p.m. MST September 8, 2015
Utility regulators differ on whether electric company should disclose political spending.
Utility regulators at the Arizona Corporation Commission asked Tuesday for a legal opinion from their staff about dark-money political contributions that utilities could be making toward the campaigns of candidates who, if elected, will set their rates.
Susan Bitter Smith and Bob Burns are trying to encourage utilities and other entities such as rooftop-solar groups from funding independent political groups that advertise for and against candidates for the commission. But they said they need more information on whether they can force utilities to disclose such spending.
Former commissioners and various media outlets have suggested the regulators can force utilities to disclose such spending, but the regulators want the opinion from their own staff.
"There is no definitive legal opinion from the commission," Bitter Smith said. "There is uncertainty regarding the role of the commission."
Three of the sitting commissioners, Bitter Smith, Burns and Bob Stump, were elected in 2012 with the help of the Arizona Chamber of Commerce and Industry with money from Arizona Public Service Co. and Southwest Gas Corp., both of which are regulated by the commissioners.
The other two commissioners, Tom Forese and Doug Little, were elected last year with the help of $3.2 million in independent political campaigns widely believed to be financed with so-called dark-money from APS.