The authors are CEOs of companies related to solar energy: Andrew Birch of Sungevity; Edward Fenster of SunRun; Lyndon Rive of SolarCity and Nat Kreamer of Clean Power Finance. | Arizona Capitol Times
For an American energy sector that hasn’t changed much in a century, rooftop solar represents consumer choice, competition, and innovation.
This is the key to understanding the increasingly anti-solar actions by APS.
When an Arizonan goes solar, they buy less electricity from APS, while saving money for their family. This is good for Arizonans, but APS views it as a threat. APS makes money by justifying infrastructure investments— a new power plant, or new power lines — which are paid for by ratepayers and which earn the utility a guaranteed profit. As solar allows Arizonans to use less energy, it becomes harder for APS to justify charging ratepayers for more stuff. According to the APS
2012 annual report to Wall Street, solar has an “adverse impact on [APS’] financial condition.” That’s Wall Street talk for “bad.”
So while solar is good for the rest of us, it threatens a 100-year monopoly that has served utilities very well. And it is very good to be a monopoly: While APS’ primary expense — electricity itself — has declined by nearly 60 percent over the past five years, ratepayers have not seen a discount on their monthly bills. Quite the opposite; APS rates have gone up for consumers. And since 2008, during enormously trying economic times for its ratepayers, APS net profits increased 51 percent.
