Trico Electric Cooperative is proposing a reduction to the credits it pays customers for excess power created by rooftop solar-energy systems, saying solar customers need to pay more toward fixed system costs.
In a filing with the Arizona Corporation Commission, Trico has proposed lowering the rate at which customers with existing rooftop solar systems are credited for power they generate beyond their usage, a process known as net metering. Trico has proposed lowering that rate to 3.7 cents per kilowatt hour, from 4.2 cents now.
Customers whose applications to interconnect new photovoltaic systems were accepted by Trico by Feb. 28 also will be credited based on the new “avoided cost rate.” But unlike prior Trico solar customers, the newer solar customers will not be able to “bank” any excess generation each month or roll it into the next month.
Trico said in its filing the change is needed because its estimated annual, unrecovered fixed costs due to net metering have increased from about $142,000 in 2009, when the current rules were adopted, to more than $1 million this year.
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Other utilities have moved to reduce credits or impose fees on rooftop solar customers to recover fixed costs.
In 2013, state-regulated Arizona Public Service Co. asked to charge rooftop solar customers a monthly fixed-cost recovery fee of up to $50 per month. The Corporation Commission eventually approved a fee averaging about $5 a month.
The self-governed Salt River Project recently approved a “demand charge” that will add about $50 per month to the average rooftop solar customer’s bill.
The Corporation Commission has not yet scheduled any hearings on the request from Trico, which serves about 38,000 customers in northwest Tucson, Marana, Corona de Tucson, Sahuarita, Green Valley, Three Points and Arivaca.
Tucson Electric Power Co. has not asked for any changes to its net metering policy since its last rate case in 2013.
TEP reimburses solar customers for excess power generation at the company’s full retail rate through credits that offset their use of grid power.
Unused credits can be carried over from month to month until October, when TEP buys remaining credits at a rate of about 2.7 cents per kilowatt hour, the company said.