Arizona Utility Files Rate Settlement Agreement with Solar Net Metering Compromise

Solar industry stakeholders in Arizona have reached an agreement with the state’s largest utility that improves on a decision made last year by state regulators that ended the existing net metering program for new solar owners.

Arizona Public Service (APS) on March 1 filed a final term sheet in its latest rate case with the Arizona Corporation Commission (ACC) that grandfathers existing solar net metering customers for 20 years, instead of the 10-year time frame established by the ACC's December 2016 decision. Those customers will take service under full retail rate net metering and will continue to take service on their current tariff schedule for the length of the grandfathering period, according to the filing.

Arizona Commission Overhauls Rules for Net Metering, Distributed Generation

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.