Solar agreement is a deal that puts Arizona’s electricity customers first

At a moment when reaching consensus appears nearly impossible in our divided culture, the proposed resolution to Arizona Public Service Co.’s first rate-review request in five years represents a rare thing: an agreement that strikes a fair balance for all concerned, most importantly Arizona’s electricity customers.

Forty stakeholders debated this proposed settlement over the past two months. They included consumer advocates, environmentalists, the state’s business community, representatives of Arizona’s growing solar industry and the top leaders of APS.

These stakeholders worked through an array of potentially divisive issues to arrive at an outcome supported by a clear majority of those engaged in the talks.

The result? If this agreement is approved by the Arizona Corporation Commission, it will stand as a clear-cut victory for customers, who will have more options and control over their electricity bills than ever before.

Additionally, this outcome could serve as a national model for states looking to deliver more solar, smarter energy infrastructure and a cleaner energy mix to residents and businesses.

Achieving this consensus required APS to make meaningful concessions. We’ve been invested in our state’s communities and economy for 130 years, and we know our success as a company depends on Arizona’s long-term economic vitality. We are confident this agreement will help to secure Arizona’s energy future.

Many of our stakeholders, including the private rooftop-solar industry, made concessions as well. Although we continue to have differing perspectives, it is good for our customers, for Arizona and for the future of solar when we come together on solutions.

Our agreement continues Arizona’s solar leadership with smart policies that enable the continued growth of solar and other new consumer technologies while protecting non-solar customers. We understand that paying more for electricity is never easy or welcome. This agreement would increase prices for our residential customers by about $6 per month, reducing our original proposal by almost half.

We also agreed that we would not seek another comprehensive review of our prices before June 1, 2019.

The additional revenue will allow us to invest, on behalf of our customers, $3.5 billion over the next three years to upgrade and secure the energy grid, including $900 million in modernized power plants to ensure cleaner electricity generation that better conserves the Southwest’s valuable water supply.

Under the agreement, moderate and low-income customers would have better access to solar than ever before through our expanded AZ Sun rooftop program. This program, which could include multifamily housing, installs rooftop solar for qualifying customers and gives them a monthly bill credit.

The proposed agreement also would increase funding to help limited-income customers from $35 million to $48 million annually, simplify the monthly bill discount for these customers and establish a $1.25 million annual emergency bill-assistance fund.

Finally, the consensus agreement includes new options and a menu of energy incentives meant to give all customers a chance to save money and better control their electric bills. The agreement would reduce the “on peak” period by two hours, from noon to 7 p.m. to 3 p.m. to 8 p.m. weekdays, and create a “demand rate” option for customers seeking to more actively manage their consumption to save money.

Compromise is never easy, especially when the issues that must be resolved are complex. At APS, we believe the consensus headed to the Arizona Corporation Commission would mean more chances for customers to save money, a more advanced grid, more solar and a brighter energy future for our state.

Don Brandt is chairman of the board, president and chief executive officer of Arizona Public Service Co. Email him at donbrandt@apsc.com.