Proposed APS Rate Increase to Affect Monthly Energy Bills for All Arizona APS Residential Homeowners

by Aimee on November 27, 2016

Post #14 – Proposed APS Rate Increase to Affect Monthly Energy Bills for All Arizona APS Residential Homeowners

Whether we like it or not, change is inevitable and it’s important for you to be aware that our utility company, APS, is planning to raise your electricity rates – big time!

Arizona Public Service (APS) has submitted a proposed rate increase to the Arizona Corporate Commission,  which will impose a mandatory demand charge on their customer’s energy consumption during the On-Peak hours of 3:00 pm – 8:00 pm. The 12 News channel reports that this would mean an increase in costs to your monthly bill by approximately 8% and cut in credit for solar homeowners sending power to the grid with the Net Metering plan. (Check out the following article for more details, APS seeks 8 percent rate hike, huge cut in ‘solar subsidy’).

Based on the APS 2016 Rate Review Executive Summary (page 23-24, 27), APS would allow solar homeowners to remain on the present net energy-metering program and be “grandfathered” into the current rate plans if key actions occur by a certain date.

If the proposed APS rate change is approved by the Arizona Corporation Commission as written, it is important to note that all APS customers will  be assigned to one of the four different rate options outlined in the blue and white chart below.

  • Non-solar customers may select one of the first three rate plans. Most will select the R1 or R2 rate.
  • Existing solar customers can stay on their existing rate plan, for a maximum of 20 years after the date of their connection to the APS grid.
  • Future solar customers, who complete their Interconnection Application before the proposed July 1, 2017 Grandfathering Date AND whose system was installed and connected to the APS grid by Dec 31, 2017, can stay on the existing rate plan they had chosen for a maximum of 20 years after the date of their connection to the APS grid.
  • Future solar customers, who complete their Interconnection Application after the proposed July 1, 2017 Grandfathering Date will be assigned to the R-3 rate plan, no matter when their system is installed and connected to the APS grid.

If you’re considering installing solar, it’s crucial to:

  1. have an Interconnection application filed on the APS website by July 1, 2017; and,
  2. have the solar installation completed within 180 days of that application date (Dec 31, 2017).

Black Platinum Solar & Electric custom designs and installs residential photovoltaic systems. Call 623-434-3340 today for a free estimate on a PV system.

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