Customers to benefit from continued investment in reliability, clean
energy, innovation
Company Website:
http://aps.com
PHOENIX -- (Business Wire)
The Arizona Corporation Commission today approved a comprehensive and
broadly supported agreement to resolve Arizona
Public Service’s first rate review in five years. ACC Staff, the
Residential Utility Consumer Office, limited-income advocates, private
rooftop solar organizations and dozens of other stakeholders supported
the consensus agreement, which encompasses a wide range of customer
interests and shows what can be accomplished when people come together
to resolve complex policy issues.
The ACC approved the previously established agreement with
modifications, but the changes do not materially affect the overall
economic terms of the agreement.
“Arizona’s energy consumers are the clear winners here because this
agreement enables investment in a smarter, cleaner energy
infrastructure, gives customers more choice and control through new rate
options, and continues Arizona’s solar leadership,” said Don
Brandt, APS Chairman, President and CEO.
The agreement brings substantial benefits to Arizona while minimizing
the impact on customer bills. Specifically, it allows for a 3.3 percent
overall revenue increase, effective Aug. 19. The revenue increase is the
company’s first base rate increase in five years with the typical
monthly residential bill increasing 4.5 percent, or about $6 per month.
The agreement also includes:
-
A $10 million to $15 million per year investment in an AZ Sun II
rooftop solar program in which limited- and moderate-income customers
would receive a monthly credit to allow APS to install rooftop solar
systems on their homes;
-
A $15 million refund of surplus energy efficiency program funds to
customers;
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Increased program funding, annual crisis bill assistance and a
simplified monthly bill discount for limited-income customers;
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Grandfathering for existing private solar customers; and
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Four new off-peak holidays, increasing the total number to 10.
“This allows us to continue investing in Arizona’s future and continue
making efficient, cost-effective investments while providing safe,
reliable service for our customers,” said Brandt. “It is a needed step
in creating a long-term, sustainable energy policy for our customers and
the state.”
Specifically, resolution of the rate review allows APS to:
-
Invest significantly over the next three years in upgrades and
maintenance for the energy grid;
-
Reduce emissions and water use through a $500 million investment to
modernize the Ocotillo Power Plant;
-
Reduce emissions and comply with more stringent federal environmental
standards through a $400 million investment at the Four Corners Power
Plant; and
-
Fund the continued development of innovative technologies such as
battery storage, microgrids and advanced solar research.
The ACC’s decision also builds on a previous Commission decision that
aims to ensure private solar customers are fairly compensated when they
produce excess electricity, while reducing the generous subsidies
previously paid for by customers without rooftop solar. Future solar
customers will be compensated for their excess electricity at a credit
starting at 12.9 cents/kilowatt-hour.
What Happens Next?
The rate adjustment will take effect on Aug. 19. Customers do not need
to take any immediate action. APS will communicate with customers
starting in the fall about how they can pick a new rate plan. The new
rate options include incentives for more efficient use of energy and
additional opportunities to save money. Among the benefits of the rate
plans:
-
An updated time-of-use plan that will become the standard rate for
future customers;
-
Two optional demand rate plans, plus a pilot demand rate for customers
with certain types of technology at their homes, all of which would
provide even more opportunities to save;
-
Additional savings for customers with two more off-peak hours on
weekdays (3 p.m. to 8 p.m. instead of noon to 7 p.m.) and four more
off-peak holidays; and
-
A plan that includes a super off-peak period of 10 a.m. to 3 p.m.
weekdays in winter to encourage customers to use more electricity at
midday when solar production is abundant and demand is low.
For business customers, the agreement:
-
Establishes a special discount rate for public schools;
-
Caps the net impact bill increase for military installations;
-
Offers a new economic development rate option to encourage businesses
to relocate or expand, along with a rural municipal economic
development rate;
-
Creates a new rate to attract highly efficient customers, such as data
centers, that need affordable, highly reliable electricity;
-
Provides an aggregation rate that lowers energy costs for qualifying
chain accounts such as grocery stores; and
-
Improves time-of-use options to work better with the operating
schedules of many businesses.
APS will not file another request for a comprehensive review of its
rates before June 1, 2019, meaning three years between rate reviews.
“Our entire rate review has been open, collaborative and inclusive of a
broad range of customer classes and stakeholders,” said Brandt. “Nearly
15 months after we filed our initial proposal, we have a resolution that
benefits our customers and positions Arizona as a leader in smart energy
policy.”
APS
serves about 2.7 million people in 11 of Arizona’s 15 counties, and is
the Southwest’s foremost producer of clean, safe and reliable
electricity. Using a balanced energy mix that is nearly 50 percent
carbon-free, APS has one of the country’s cleanest energy portfolios,
including both Palo Verde Generating Station and renewable energy. The
company is also a proven leader in introducing technology and services
that offer customers choice and control over their energy consumption.
With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle
West Capital Corp. (NYSE: PNW).
View source version on businesswire.com: http://www.businesswire.com/news/home/20170815006206/en/
Contacts:
APS
Media Contacts:
Anna Stewart, (602) 250-2104
Jim
McDonald, (602) 321-3738
Analyst Contact:
Stefanie Layton,
(602) 250-4541
Website: aps.com/newsroom
Source: APS
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