Arizona Solar Advocates Challenge APS “Grid Access Charge” In Court: A Fight For Fair Energy Policy – CleanTechnica

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In a significant legal development, a coalition of advocacy organizations has filed an appeal challenging the Arizona Corporation Commission’s (ACC) decision to uphold a fee imposed on Arizona Public Service (APS) customers who utilize rooftop solar panels. The appeal, lodged on January 28, 2025, contends that the so-called “Grid Access Charge” is discriminatory and contravenes both state and federal laws.

Background Of The Grid Access Charge

The Grid Access Charge, introduced by APS, was initially approved by the ACC on March 5, 2024, as part of a broader rate increase for APS customers. This fee, ranging between $2 and $3 per month, specifically targets the approximately 200,000 APS residential customers equipped with rooftop solar systems. APS asserts that this charge is necessary to recoup costs associated with maintaining the grid infrastructure that solar customers rely on when their systems are not producing energy. Without this fee, APS argues, non-solar customers would unfairly shoulder these additional costs.

However, opponents of the charge argue that it unfairly penalizes solar adopters who contribute to the grid by supplying excess energy and promoting renewable energy usage. They contend that the fee undermines the financial incentives for adopting solar technology and poses a barrier to Arizona’s renewable energy goals.

Legal Challenge & Rehearing

Following the ACC’s initial approval, the decision faced immediate backlash from various stakeholders, including Vote Solar, the Arizona Solar Energy Industries Association (AriSEIA), and the Arizona Attorney General’s Office. These groups contended that the fee was discriminatory and lacked a solid evidentiary basis. In response to these concerns, the ACC conducted a six-day rehearing in October and November 2024 to reassess the validity and implications of the Grid Access Charge.

During the rehearing, administrative law judge Belinda Martin concluded that while the fee was not discriminatory against solar customers, eliminating it would not constitute discrimination against non-solar customers. Despite this nuanced finding, the ACC voted 3-1 on December 17, 2024, to uphold the charge, with Commissioner Anna Tovar dissenting and Commissioner Lea Marquez Peterson absent due to a personal emergency. The majority emphasized the necessity of the fee to prevent non-solar customers from subsidizing those with solar installations.

Appeal To The Arizona Court Of Appeals

Unsatisfied with the ACC’s reaffirmation of the fee, Vote Solar, represented by the Arizona Center for Law in the Public Interest (ACLPI) and Earthjustice, filed an appeal in the Arizona Court of Appeals on January 28, 2025. The appeal argues that the Grid Access Charge violates provisions of the Arizona Constitution and the Public Utility Regulatory Policies Act (PURPA), a federal law designed to encourage the adoption of renewable energy and ensure fair utility rates.

Kate Bowman, Vote Solar’s Interior West Regulatory Director, stated, “As Arizona families face rising energy bills and record-breaking heat, rooftop solar panels are one of their only options to reduce their reliance on the monopoly utilities that have saddled them with rate increase after rate increase. By approving the Grid Access Charge, the ACC undermines Arizonans’ right to choose energy independence. We will keep fighting this discriminatory treatment until all Arizonans have equal access to clean energy resources and fair utility rates.”

Stakeholder Perspectives

The decision to uphold the fee has elicited strong reactions from various stakeholders. Autumn Johnson, Executive Director of AriSEIA, criticized the ACC’s decision, stating that solar customers are, in fact, subsidizing non-solar customers. She emphasized that the evidentiary record indicates that solar customers contribute more than their fair share to grid maintenance costs.

Conversely, APS and supporting commissioners argue that the fee ensures equitable cost distribution among all customers. Commissioner Kevin Thompson remarked, “I hope there’s a day when homeowners can live completely free from the grid, but we are not there now. I believe all costs related to providing service should be equally and fairly distributed among all classes of customers.”

Implications For Arizona’s Solar Industry

The outcome of this legal battle holds significant implications for Arizona’s solar industry and its renewable energy trajectory. Should the appeal succeed, it could set a precedent limiting utilities’ ability to impose similar charges on solar customers, thereby encouraging more homeowners to adopt solar technology. Conversely, if the fee is upheld, it may deter potential solar adopters due to increased costs, potentially slowing the state’s progress toward its renewable energy objectives.

As the case progresses through the judicial system, stakeholders on both sides await a resolution that will shape the future landscape of distributed solar energy in Arizona.