Arizona Regulator Seeks Mutually Beneficial Solar Solution After Controversial Changes In Nevada

By Will Stone
Published: Thursday, January 14, 2016 - 5:55pm
Updated: Friday, January 15, 2016 - 9:46am

Utility regulators in Nevada are not backing down from recent controversial changes to the rate structure for customers with rooftop solar.

This week, the public utilities commission decided not to grant the stay requested by Nevada's Bureau of Consumer Protection despite outrage among customers of NV Energy, the state's largest utility. 

Meanwhile, Nevada is hemorrhaging hundreds of solar jobs as companies like Sunrun and SolarCity exit the state in response to the regulatory shift.

Last month, state regulators there decided to raise monthly fees for those with rooftop solar by about 40 percent while, at the same time, scaling back what customers are paid for sending power back to the grid, known as net-metering. 

With a much anticipated rate case for Arizona Public Service later this year, state regulators are expected to face similar decisions about the future of rooftop solar. 

The recent debate over net-metering in Arizona has been combative at times with APS accusing the solar industry of “attacks” and “distortion.” That led the utility last year to withdraw its bid to raise rates by about $15 for residential rooftop solar.

But Arizona Corporation Commissioner Tom Forese said he believes Arizona can avoid the “zero sum” game that has played out in Nevada.

“The problem is the premise. We’re talking about who’s going to pay what cost," Forese said. "I think there’s a different way to look into it. We can leverage technology and we can use a spirit of diplomacy.“

Forese has recently been meeting with executives from SolarCity and utilities in the state to help reset the conversation. 

He characterized the situation as essentially a "turf war" between an industry still in its infancy and the utilities, which ultimately comes down to money. 

"What happened in Nevada didn't happen overnight," Forese said.

"I'm hopeful that we'll be able to find solutions that benefit everyone, so that we don't have a mass exodus. I think that is an unfortunate model," he said.