(SCOTTSDALE, Ariz.) — Arizona electric utility companies have received $900 million to $1 billion in federal and state subsidies for fossil and nuclear energies since 1985, a new study shows, upending a key argument used by Arizona Public Service and its defenders that solar in Arizona is benefiting from disproportional subsidies from the federal government.
The study, “Deconstructing Government Support for Arizona Public Utilities,” shows that:
- The level of subsidies for renewables is far smaller than that for non-renewables energy sources at the same point in their life cycle.
- The total annual subsidy to electric utility companies in Arizona is about $67 million.
One subsidy the study measured closely was more than $31 million in water through 2005 used for the Palo Verde Nuclear Generating Station, which is owned by APS and other utilities.
The study also brought to surface that many of the tax exemptions, deductions and credit received by utilities are hidden in the state’s tax code and “very little has been published regarding the tax benefits bestowed on utility companies in Arizona,” according to the study.
APS and shadowy groups that defend its anti-solar campaign, want to end the current net metering policy in Arizona which gives solar customers credit for the power they produce. They claim that this is an unfair subsidy for solar customers which drives up costs to non-solar customers, which, analysis shows, is a bogus claim.
In the conclusion of the study, its authors, Elliott D. Pollack and Company, said, “No emerging energy source in the history of the United States, be it biomass, coal, oil, gas, nuclear, hydro, biofuels or renewables, has ever expanded or grown without substantial support from federal and state governments. In fact, incentive periods regularly extend far beyond the transition from one fuel source to another.”
T.U.S.K. Chairman Barry Goldwater Jr. stated, “This should put to an end all the talk coming from Arizona Public Service and its defenders about solar and subsidies because this study clearly shows that non-renewable energy sources have been and continue to benefit in a huge way from federal government subsidies.”
T.U.S.K. (Tell Utilities Solar won’t be Killed) was formed to stand for energy choice and energy independence.
To learn more about T.U.S.K. visit www.dontkillsolar.com
T.U.S.K. believes that rooftop solar is similar to a charter school—it provides a competitive alternative to the monopoly. Monopoly utilities aren’t known for reducing costs or for driving business innovation, but the Arizona solar industry is. Solar companies have a track record of aggressive cost reduction in Arizona. The more people use rooftop solar, the less power they need to buy from the utilities. Energy independence for Arizonans means smaller profits for the utilities, so APS is doing everything it can to stop the spread of independent solar.
