APS Proposes New Rate Structure - Existing Solar Customers Grandfathered

[Ian S]

The outline is in a pdf document at the website below. Basically they're going to a TOU/Demand structure and shifting the peak period to an hour later in the day while shortening it by two hours. Those with solar get grandfathered for 20 years but the net metering stays with the home. Unlike SRP, they are giving those interested in solar some time to fish or cut bait. Looks like there will be a new market for load controllers and, for solar, peak demand-shaving battery systems - if they can be made economical.

Actual link: http://www.azenergyfuture.com/getmed...ntial_Web.pdf/

[solarix]

I just love it when the utility make a deadline. It is just the best for business. Even if the Corporation Commission shoots down this proposal, the public will feel threatened and the phone will start to ring.... Thanks APS!

[azdave]

I think most notable is that this is reported to be the first utility nationwide to request "demand metering" for all residential customers (not just solar users like SRP did last year). I understand the drive towards demand metering because it gives users incentives to balance out their energy demands and thus takes the peaks off the grid demand.

I still think it is insane that a public utility can legally make multi-million dollar contributions to the political campaigns of people running for the "impartial" Corporation Commission office that governs them. I know everyone likes to buy them a politician or two but using profits from a public utility? And then asking for an 8% rate increase? Am I the only one seeing this?

[SunEagle]

I think most notable is that this is reported to be the first utility nationwide to request "demand metering" for all residential customers (not just solar users like SRP did last year). I understand the drive towards demand metering because it gives users incentives to balance out their energy demands and thus takes the peaks off the grid demand.

I still think it is insane that a public utility can legally make multi-million dollar contributions to the political campaigns of people running for the "impartial" Corporation Commission office that governs them. I know everyone likes to buy them a politician or two but using profits from a public utility? And then asking for an 8% rate increase? Am I the only one seeing this?

AZ is not the only state where it seems the PUC is being lead by the POCO's. At least that is the image I see here in Florida.

[sunnyguy]

So very little solar generation (between 3-8) will count towards peak on time of use. Loss of almost 70% value for those kwh between 12-3. a/c is main driver of peak residential demand. Have a few hot days in march and your demand charge for the whole month spikes? Hard to accept sacrificing comfort as an "opportunity to control your savings".

Net metering is grandfathered, but are time of use schedules?

[azdave]

Net metering is grandfathered, but are time of use schedules?

Not sure yet with this proposed APS deal but I'm grandfathered with SRP and I'm allowed to change once per year. I went from TOU to Basic with no issues. With the newer SRP rules, all solar users have a single plan with no further TOU choices.

[solarix]

So far, APS has grandfathered their rate plans. I have customers still on the old TOU plan which was on-peak from 9am to 9pm (what a sweet deal for solar).
I just quoted a guy with a big house $2.36/watt (yes, that's not a typo) on a 9.6kW (58% of his usage) that will pay off in 5 years because he has the 9-9 plan.

[wblanford]

Here is the APS proposal:
• Change on-peak time-of-use period from noon - 7 p.m. to 3 p.m. - 8 p.m. Monday through Friday, excluding holidays.
• Reduce the difference in the on- and off-peak energy prices and lower all energy charges.
R-3 Basic Service Charge $24, Demand Charge $16.40/kW summer, $11.50/kW winter
Energy Charge summer: On-Peak $0.0909/kWh, Off-Peak $0.05475/kWh
Energy Charge winter: On-Peak $0.0667/kWh, Off-Peak $0.05475/kWh
**Demand charge calculated as the average over one hour during the on-peak window only.

New APS solar customers after July 1, 2017 would be on the R-3 rate. Basically what new APS solar customers would receive is about $0.065 / kWh for their solar generation. This is a higher rate than new SRP solar customers, who receive about $0.045 / kWh for solar generation. Residential solar is dead for new SRP customers currently and would be almost dead for new APS customers. Annual surplus kWh hours above usage are reimbursed at $0.025 / kWh.

[Spektre]

So far, APS has grandfathered their rate plans. I have customers still on the old TOU plan which was on-peak from 9am to 9pm (what a sweet deal for solar).
I just quoted a guy with a big house $2.36/watt (yes, that's not a typo) on a 9.6kW (58% of his usage) that will pay off in 5 years because he has the 9-9 plan.

Whoa whoa whoa there! $2.36/watt pre-incentive??? What equipment does that system include?

[NYHeel]

Well with these terrible net metering policies possibly taking effect, you're going to need dirt cheap pricing to sell any of these systems in those locations.

[38kW]

Warning for APS existing solar customers with EPR-6 rate schedule. If you change rate plans, you will lose any banked kWh. I was previously on the ET-2 Time Advantage plan with EPR-6 rate rider. In April 2016, I doubled my solar capacity and switched to the E-12 Standard Rate plan. At the time, I had 560 kWh On Peak credit carry forward, On my next bill after changing rate plans, the credit carry forward disappeared. I didn't notice this until recently and I called APS for explanation. I was told that since the EPR-6 Net Metering Rate Rider tariff does not specifically state that the kWh bank balance shall be paid or carried forward when switching plans, APS, in its sole and absolute discretion, determined that the banked kWh's are lost.

This doesn't effect most solar customers since new solar customers have not yet banked any credits. This cautionary advice applies to existing solar customers who have banked kWh credits and are changing to a different rate plan.

[azdave]

Good to know. I'm with the other utility in town, SRP, and got to keep all my credits when I changed plans (grandfathered under old contract) . New SRP solar customers have no choice but to use only one plan designed just for grid-tie customers. No TOU plan changing allowed.

[cebury]

So how does the new R3 demand charge work? They take the 1hr average peak KW during on peak window, multiply by the demand rate and that is a single monthly charge?

When I'm not paying attention and running the EV charger, dryer, AC and oven all at the same time It's above 15KW. Obviously that doesn't average out to 15kw when all the rest of the hours during onpeak are at much less demand.

[Ian S]

So how does the new R3 demand charge work? They take the 1hr average peak KW during on peak window, multiply by the demand rate and that is a single monthly charge?

Not sure what you mean by "average" but when I was on an APS demand plan prior to solar, they determined the single hour of time in the month when you used the most electricity so because it's over a 1 hour period that becomes your kW demand change and it gets multiplied by the cost factor to generate a number for the month. If you slip up and run the oven, the AC and the pool pump at the same time during the peak period, that mistake determines your cost for the month. It doesn't matter if your demand average was a small fraction of that, it's the peak that counts.

[HX_Guy]

So how does the new R3 demand charge work? They take the 1hr average peak KW during on peak window, multiply by the demand rate and that is a single monthly charge?

When I'm not paying attention and running the EV charger, dryer, AC and oven all at the same time It's above 15KW. Obviously that doesn't average out to 15kw when all the rest of the hours during onpeak are at much less demand.

It's averaged over 1 hour, but not over the entire on-peak period. Meaning if your AC unit that draws 5kW runs for 15 minutes, then you take 5 + 0 + 0+ 0 and divide by 4, giving you an kW demand of 1.25kW. What's funny is that APS is touting this like "Don't use major appliances at the same time" but what they really mean is "in the same hour". It really doesn't matter if you use four 5kW appliances all at once for 15 minutes of if you turn on each every 15 minutes. The fun part is that it's a "rolling hour", so 12:00 - 1:00, 12:01 - 1:01, 12:02, - 1:02, etc.

[HX_Guy]

So very little solar generation (between 3-8) will count towards peak on time of use. Loss of almost 70% value for those kwh between 12-3. a/c is main driver of peak residential demand. Have a few hot days in march and your demand charge for the whole month spikes? Hard to accept sacrificing comfort as an "opportunity to control your savings".

Net metering is grandfathered, but are time of use schedules?

Yes, the plans are being grandfathered as well if you have or get solar prior to the deadline. I can actually see a demand for homes with grandfathered APS plans in the future, solar aside. It's like, if you want to live without your demand being monitored, then you better find a house with a grandfathered APS plan...which only solar customers will have.

Plus of course you really won't be able to go solar anymore after this takes place (well you can, but it won't make much financial sense) so there will be real demand for solar homes as well. Didn't the same thing happen in SRP? I remember reading an article a while back on AZCentral which said grandfathered solar homes in SRP territory saw their value go up about 10% due to the grandfathering.