PHOENIX, AZ — Thousands of Arizona Public Service customers who have solar panels pay an extra monthly fee on their bills.
Now there’s a court ruling that could work in their favor.
The Arizona Court of Appeals on Tuesday sided with solar advocates, ruling the Arizona Corporation Commission violated due process when it imposed a solar fee on APS customers. The court found a subsequent rehearing failed to fix the problem.
“This charge has been silly from the beginning,” said Autumn Johnson, executive director of the Arizona Solar Energy Industries Association, a non-profit group that advocates for solar and was part of the legal challenge.
The commission must now either hold another rehearing on the solar fee or throw out the charge completely.
No word yet on what direction the commission will go. In a statement on Tuesday, Commission Chairman Nick Myers said the commission will wait for guidance from legal counsel before taking action.
ABC15 has reported extensively on the solar fee.
The fee, officially known as “Grid Access Charge,” was approved by the commission in February 2024. The charge applies to more than 165,000 residences with solar panels. It was part of a package of increases approved for APS customers.
Many solar customers see the fee listed as a “Grid Access Charge” on their monthly bills. For solar customers on “legacy” plans, the fee is included in the base rate and doesn’t appear as a separate line item on bills.
The fee isn’t huge – about two to three dollars a month on average. But that was on top of an 11% hike in APS rates that all residential customers faced that year, not just solar customers.
Larry Sunshine — yes, that's really his name — was one of several customers who spoke to ABC15 back in 2024 about the solar fee. The Scottsdale resident has 43 panels on his home and is among many solar customers upset over having to pay an extra fee simply because they installed solar panels.
"It's just another amount of money out of your pocket that could be used by something that maybe has more value to you," Sunshine said.
In a statement in response to the recent court ruling, APS issued this statement:
“Arizona Public Service (APS) is reviewing the Court of Appeals’ decision regarding the procedural aspects relating to the solar charge implemented in the 2022 rate case and is assessing its implications. APS remains committed to providing safe, reliable service while supporting rates that are fair for all customers.”
APS is in the midst of another request for a rate increase before the corporation commission with hearings now underway. In that rate case, APS is proposing to increase the solar fee. A decision on that rate case is not expected until later this year.
ABC15 will continue to monitor and report on what happens with the solar fee.
Have a story idea in Scottsdale? Email ABC15’s Scottsdale reporter Anne Ryman at anne.ryman@abc15.com, call her at 602-685-6345, or connect on X.
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