APS rate case sparks concern beyond mandatory demand charge proposal, Rose Law Group Senior Partner Court Rich weighs in

By Herman K. Trabish | UtilityDive

Along with a rate structure overhaul, the Arizona utility also wants to cut net metering credits to its avoided cost rate.

ter working for years to win approval from Arizona regulators for higher fixed charges and fees for solar customers, Arizona Public Service altered its strategy in a new rate case filed last week, requesting demand charges for virtually all its customers.

A year ago, APS filed with the Arizona Corporation Commission (ACC) for an increase of its $0.70/kW fixed charge to $3/kW. The utility said at the time the fixed charge was a more secure way to cover grid upkeep costs and protect customers without distributed generation from subsidizing those who have it.

When solar advocates argued such charges should be part of the utility’s rate case, APS withdrew the proposal and the two sides launched into an ongoing proceeding on the costs and benefits of distributed solar.

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