The Arizona Corporation Commission (ACC) voted 4 to 1 on
Dec. 21 to restructure how distributed generation (DG) is compensated and paid
for in Arizona.
The commission said in a news release that the move to
replace net metering is laying the foundation to invigorate
renewable energy technologies while providing equity to all customers.
The decision comes after a three-year investigation into the
value and cost of solar which included input from a broad coalition of solar,
utility, consumer advocates and customers.
Under net metering policy adopted in 2009, customers were
given full retail credit for the power they generate and can sell back the
excess at wholesale. Those rules will be grandfathered for the existing
customers.
The new methodologies will take into account wholesale rates
which reflect what utilities pay for solar energy from large plants. Both
methods will be established in rate cases and updated annually and promote a
gradual change in export rate not to change more than 10 percent from year to
year.
Customers with DG systems that are subject to the new DG
export rate will have that rate locked in for 10 years. Further, the order
permits persons who purchase a home with a DG system subject to the 10-year
rate to “inherit” the remaining years of that locked in rate.
“Existing solar customers can rest assured that their
investment is safe,” said Commissioner Andy Tobin. “Our decision recognizes
those customers while taking the next step by determining rates which take into
account advancements in solar and other renewable technology which helps us
push forward proactively."
Commissioner Bob Burns dissented from the decision.
“In my view, this decision did not get to where I needed it
to be in order to support it. Future solar customers should have their solar
export rate grandfathered for 20 years, not 10 years, just like what was
approved for existing customers,” Burns said.
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