The end of solar tariffs in the Phoenix area depends on the maintenance of an Arizona law promoting competition in the electricity sector. The Arizona House voted to end such competition, and the Arizona Senate may do the same.
In a court ruling that raised hopes that the Phoenix-area utility’s Salt River project solar-powered tariffs would soon be abolished, a federal appeals court ruled that the utility was subject to federal antitrust laws. The utility rates increased costs for rooftop solar customers by 65% and caused a decrease in rooftop solar applications by 50 to 96%, the court found.
But now the Arizona legislature is set to repeal the state’s law promoting competition in the generation and supply of electricity, a law that was at the heart of the court’s antitrust ruling. call. In a bipartisan vote, the Arizona House of Representatives last week passed a bill to end that competition, and the Arizona Senate is ready to vote on a bill that could likewise.
Arizona SEIA, the state affiliate of the National Solar Association SEIA, opposed both bills. If they become law, the SRP anti-solar rate would “most likely” be allowed to stand, the group said in a letter to state lawmakers.
Indeed, as the Court of Appeals stated, if the Arizona law was intended to displace competition in the generation and supply of electricity, SRP, as a political subdivision of the State of the Arizona, may be entitled to “state action immunity.” The SRP was established by state law as an Agricultural Improvement District.
The Arizona SEIA letter says customers are choosing solar power for many reasons, such as promoting clean energy, resilience, or saving money. “No matter why you might favor rooftop solar, it’s a choice every family should be able to make for themselves, and utilities shouldn’t be able to put their thumbs in the balance to make its adoption so cumbersome that families are prevented from making the decision. »
Vote Solar and free market advocates have also registered their opposition to the bill.
The Arizona House bill, HB 2101, passed by a bipartisan vote of 37 to 21. The Arizona Senate bill, SB 1631, passed in committee and is ready for a floor voting.
Arizona is one of the sunniest states in the United States and has the fourth highest amount of small-scale PV in the nation relative to its population.
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