On January 28, the Arizona Center for Law in the Public Interest (ACLPI) and Earthjustice filed an appeal in the Arizona Court of Appeals on behalf of Vote Solar challenging the Arizona Corporation Commission’s decision approving a discriminatory charge on customers with solar. The solar fee is imposed by the utility Arizona Public Service (APS) and results in higher electricity prices for households with solar panels. APS is a regulated utility that provides power to approximately 1.4 million households and businesses across Arizona.
The charge, which APS calls a “Grid Access Charge,” was first approved by a 4-1 ACC vote on March 5, 2024 when the ACC also approved a rate increase for APS customers. As a result of the ACC’s decision, the roughly 200,000 APS customers with rooftop solar must now pay more than their neighbors without solar for equal amounts of electricity service.
The ACC conducted a six-day rehearing in October and November 2024. During that rehearing, Vote Solar and other parties repeatedly demonstrated that the solar fee is illegal and discriminatory under both state and federal law, including the Arizona Constitution and the Public Utility Regulatory Policy Act (PURPA), which is designed to ensure fair competition and promote renewable energy sources. The ACC nevertheless decided on December 31, 2024, to maintain the solar charge despite its lack of factual support and illegality.
“The rehearing was an opportunity to further investigate APS’ justifications for imposing a charge on solar customers,” said Vote Solar’s Interior West Regulatory Director, Kate Bowman. “Now, with a fuller picture of the flaws inherent to the solar fee, we hope that the Arizona Court of Appeals will apply the law and invalidate this unfair and unlawful tax on solar customers.”
As the only regulated utility in the country that imposes a discriminatory solar charge, APS’ solar-specific charge undermines the ability of homes and businesses to invest in clean energy.
“As Arizona families face rising energy bills and record-breaking heat, rooftop solar panels are one of their only options to reduce their reliance on the monopoly utilities that have saddled them with rate increase after rate increase,” said Bowman. “By approving the Grid Access Charge, the ACC undermines Arizonans’ right to choose energy independence. We will keep fighting this discriminatory treatment until all Arizonans have equal access to clean energy resources and fair utility rates.”
News item from Vote Solar
