TUCSON, AZ – The Arizona Corporation Commission (ACC) held a hearing in Tucson yesterday to consider a proposal by Tucson Electric Power (TEP) that would turn back the clock on clean energy and solar jobs in southern Arizona. Proponents of rooftop solar squared off against TEP lawyers before an administrative law judge. Also under the judge’s consideration were more than 420 letters, many of them hand-written, submitted by Tucsonans opposed to TEP’s proposal and in defense of rooftop solar.
In one of the letters, the Sierra Club’s Grand Canyon (Arizona) Chapter calls attention to TEP’s continued investment in the San Juan Generating Station, an out-of-state, coal-fired polluter whose economic viability is uncertain. The letter says “coal is an increasingly risky investment,” citing increased fuel prices, tougher pollution regulations, and demands of electricity customers for clean, locally-generated energy such as wind and solar.
Only 1-2% of TEP customers are solar and the company reported $1.2 billion in revenue in 2014. TEP’s proposal would add a penalty for new solar customers as of June 1, only crediting them for about half of the energy their solar panels produce.
“TEP has a lot of nerve to try to nickel-and-dime Tucsonans over rooftop solar, when every year TEP throws millions of our ratepayer dollars down a dirty money pit called ‘coal,’” said Dan Millis, a Sierra Club organizer in Tucson. “Coal is a dead-end, obsolete technology – especially at San Juan – but TEP wants to force us to keep buying the stuff. They’re trying to stop us from harvesting free, clean, solar fuel. Coal might make money for TEP executives, but it doesn’t make sense for Tucson.”
TEP owns a stake in five coal-fired power plants in Arizona and New Mexico. A 2014 TEP report shows coal to make up 80% of the company’s generating resources, another 12% natural gas, and only 4% solar and wind.
“TEP’s claim that rooftop solar customers are costing the company millions each year just doesn’t add up,” stated Millis. “What about all the water guzzled up by coal-burners like San Juan? What about the dozens of asthma attacks each year from TEP’s coal plant in Tucson? In the big picture, rooftop solar saves money for all of us.”
ACC staff testified today that TEP should not be granted a special exception to statewide solar rules or given permission to inflict a penalty on new solar customers at this time: “If this issue is that big of an issue to the company, they can file a rate case,” staff said during testimony at the hearing.
Arizona created more than 600 new jobs in the state’s growing solar industry in 2014, according to a report by The Solar Foundation. Arizona saw 7.2% job growth in solar and ranks third nationally in total number of solar jobs.