APS Rate Case: Five Things You Need to Know

Arizona Public Service (APS) has filed a rate case with the ACC that is scheduled to play out over the next year.  There is a lot flying around in the editorial pages and the Internet about what it means for ratepayers.  Here is what you need to know:

1. If you're thinking about rooftop solar, now is the time to decide and prepare.
If APS gets the decision to go its way, the program known as Net Metering will be cancelled for new solar customers.  If adopted, systems that seek approval for installation after July 2017 will only be able to sell excess electricity back to the grid at reduced rates.  This will effectively double the amount of time required for you to get the full return on your solar investment.
If you get your submission in on time, you'll be grandfathered into the existing solar Net Metering plan for 20 years, allowing you to get the most benefit of rooftop solar.

Read our article Pros and Woes of Solar to help you prepare for a solar decision and purchase.

2. New rate plans would charge you for how much power you pull in a single hour (demand).
Most customers today just pay a flat rate for the total amount of power you use during a month.  The demand charge would add a factor that calculated how much power you use at a given point in time.  So, if you have the AC  on, turn on the dishwasher, and then fire up the washing machine, you're not only charged for the total usage, but also for pulling all this power at the same time.

3. How much you pay a month will depend on which plan you select.
The proposal on the table has three plans.  Each has a different balance of demand charges and per-KwH rates.  All of them appear to be within $20 of a typical bill under current rates, but the more demand-focused plan (R-3) can change a lot, depending on how you manage your demand.  You could save up to $50 or spend an extra $150, depending on how careful you are.

4. The Utilities Council will advocate for Verrado.
Based on the case, the UC will advocate on three main points.  First, to leave Net Metering in place.  Second, to oppose the demand component on every proposed rate plan.  Third, to mitigate the impacts of demand charges by using an averaged demand and by limiting the load factor cap.  We will announce letter writing campaign dates and locations in the coming weeks.

5.  Your vote will be extra important.
The decision on this case will come after the November elections.  Whatever your position on national issues, the ACC hits you right in the pocketbook.  So make a point of being an informed voter and don't just stick to the (D) or (R) on the ticket.  The ACC doesn't deal with party platform issues; they deal with us, the consumers.  The Utilities Council will not advocate for or against any specific candidate or party, but after the last election and all the rumors circling about well-funded APS-backed candidates, we do recommend being a vigilant and informed voter.

For more information on the ACC Candidates, read our 2016 election overview.