Court rejects ACC’s approval of extra rooftop solar fees

“This case is a huge win for APS customers who no longer can be taxed for the sin of trying to lower their always-increasing electric bills with rooftop solar technology.” -Court Rich, Rose Law Group co-founder and director of renewable energy and utility infrastructure law

(Disclosure: Rose Law Group represent AriSEIA in this matter.)

By State Affairs

The Arizona Corporation Commission violated due process when it approved and reaffirmed an additional charge for Arizona Public Service’s residential rooftop solar customers, according to the Arizona Court of Appeals.

A three-judge panel unanimously ruled Tuesday that the commission’s 2022 decision in APS’ rate case creating a “grid access charge” for rooftop solar customers “did not comport with due process.” Additionally, a 2024 rehearing on the solar charge “did not cure the due process deficiencies of the initial proceedings,” the court found.

Judge Daniel J. Kiley ordered the commission to either conduct a “due process-compliant” rehearing or vacate the solar charge entirely. Tom Van Flein, the commission’s general counsel, said in a statement that it will “evaluate the best way to address this matter going forward.”

The ruling stems from a controversial provision of APS’ 2022 rate case in which an administrative law judge for the commission recommended setting rates for solar customers 15% higher than non-solar customers, even though APS did not make such a request. The commission voted to approve the solar fee, which became known as the grid access charge (GAC).

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