Arizona court strikes down solar fee for APS customers citing lack of public notice

The Arizona Court of Appeals has struck down a fee that the Arizona Corporation Commission approved for Arizona Public Service customers with rooftop solar panels, ruling the charge was added without proper public notice.

The fee, known as a grid access charge, added roughly $2.50 to $3 per month for households with solar panels. It was part of a broader rate plan that raised average monthly bills by about $10 to $12 for residential customers.

APS is the state’s largest utility, serving about 1.4 million customers.

The court found that APS never proposed the solar fee in its 2022 rate case and that it was not included in the public notice that informs customers what changes are being requested. Instead, the charge was recommended later by an administrative law judge and adopted by the commission.

Attorney General Kris Mayes, who filed the appeal alongside Vote Solar, the Arizona Solar Energy Industries Association and individual solar customers, called the fee improper.

“APS customers with solar panels were blindsided by a rate hike that the public was never told about,” Mayes said in a statement. “The ACC cannot spring a new charge on ratepayers and then call it fair just because they later offer a rushed do-over.”

What happens next after the solar fee ruling

Corporation Commission Chairman Nick Myers said the court’s issue was with the notice process, not the fee itself.

“The court indicated it would have had no problem affirming the (grid access charge) but for deficiencies in the notice going all the way back to 2019,” Myers said. “We will wait for guidance from counsel before taking further action.”

Commission General Counsel Thomas Van Flein said the agency is weighing its options.

APS said it is also still reviewing the ruling.

“Arizona Public Service is reviewing the Court of Appeals’ decision and is assessing its implications,” a spokesperson said in a statement. “APS remains committed to providing safe, reliable service while supporting rates that are fair for all customers.”

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