By Jeff Caldwell |
Radical Leftists and solar panel companies are freaking out over the upcoming Arizona Corporation Commission meeting on Wednesday, October 11 at 10:00am! But, based on the available public comments, they are the only ones who have contacted the Corporation Commission to express their desired actions regarding what’s on the agenda.
Currently, Arizona regulations force utility companies in the state to buy the extra solar power each solar customer puts into the grid. The Arizona Corporation Commission sets the rates that utility companies pay those customers.
On Wednesday, the Corporation Commission could vote to change the amount utility companies pay to match the break-even cost of the companies. This would reduce the vast majority of Arizonans’ energy bills.
In 2007, the Corporation Commission implemented a policy that required utility companies to pay retail price of solar power to their customers who put solar power back into the grid.
Those customers are still getting that rate today, even though the price of solar power has decreased tremendously over time. The customers are locked into that amazing deal for 20 years from the date of installation.
The 2007 policy ended in 2016 when the Corporation Commission decided utility companies should pay wholesale pricing to customers. However, there was a “great negotiation” between those who wanted the policy to remain in place—the Radical Left & solar power companies—and the Corporation Commission. The new policy implemented allowed for a maximum of only a 10% reduction in the price utility companies pay these customers every year. Since 2016, customers are locked into the rate they are paid for 10 years from the date of installation. Oh, and yes, those customers who installed solar panels between 2007-2016 are still locked in to get paid retail pricing for 20 years from the date of installation.
Because the maximum reduction of the rate utility companies pay to solar power customers who give to the grid is only 10% per year, there is still a huge discrepancy between the true wholesale solar power price and the rate utility companies are forced to pay these customers.
APS calculates their “Avoided Cost” at almost $0.05. This means APS would nearly break even on paying five cents per kWh to solar panel customers giving power to the grid. However, APS is forced to pay nearly $0.09 per kWh. For ten years, APS has to pay this rate to every solar panel customer who gives power to the grid, even though solar power is more than likely going to continue to fall.
The Arizona Corporation Commission sets the maximum profit rate of utility companies. APS’ is set at 8.7%. Being forced to pay customers more for their energy than the break-even cost causes utility companies to charge customers who do not have solar and are not giving to the grid a higher price for energy to meet profits.
If APS is allowed to truly match wholesale pricing for all solar panel customers giving to the grid and pay each one of them just under five cents per kWh, APS would be forced to cut the cost of energy for all of their customers, use the extra funds left over to reinvest, and/or expand its energy providing capabilities.
That’s why, if you really believe in clean energy or just want cheaper utility bills, it’s important to make your voice heard by speaking up, giving public comments, or submitting written public comments.
Right now, the only folks who have been doing so are those who own solar panels and don’t want their pay to decrease or solar panel companies who may face tougher economic hardship. But all customers deserve a say in our state’s energy prices both now—and in the future.
Jeff Caldwell currently helps with operations at EZAZ.org. He is also a Precinct Captain, State Committeeman, and Precinct Committeeman in Legislative District 2. Jeff is a huge baseball fan who enjoys camping and exploring new, tasty restaurants! You can follow him on X here.
