Cost of Service? Arizona’s solar saga takes on the valuation question

Screen Shot 2015-10-06 at 10.07.57 AMBy Herman K. Trabish | Utility Dive

Arizona’s tug-of-war over rooftop solar took a sudden turn last week when the state’s major power producer, Arizona Public Service, offered to withdraw its request to increase a grid access fee for rooftop solar users. In exchange, APS asked that state regulators open a cost-of-service proceeding for distributed solar.

The utility’s filing requests that the Arizona Corporation Commission conclusively define the full cost for electricity delivery, and use that definition to decide if costs are shifted to non-solar owners because of the decreased revenues coming from rooftop solar owners.

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