The Arizona Corporation Commission has taken a stand in preserving the flow of the free market by declining to allow a solar cost recovery program to be run by utility monopolies, Arizona Public Service (APS) and Tucson Electric Power (TEP). The Arizona Corporation Commission has cautioned both companies to proceed with the projects at their own risk.
The Arizona Corporation Commission has also restrained their programs due to a compromise which will restrict them to ratepayers with a low credit score as well as to pilot research projects.
Both utilities are not allowed to touch captive ratepayer cash in order to fund their rooftop solar project, which would essentially broaden the reach of their monopolies and allow them to compete in an unfair market with private sector solar providers.
Arizona Corporation Commission protecting the private market
This decision by Arizona Corporation Commission in limiting such attempts by APS and TEP very definitely represents good faith from those regulators based in Arizona. Such measures to curb attempts of this kind follow in the footsteps of similar bids in South Carolina, Colorado and Washington. The original bid made by APS was even opposed by the Arizona Corporation Commission staff itself.
Even though the Arizona Corporation Commission authorized the utilities to attempt to work within the distributed solar industry for research purposes only, the Commission has refused to look at a proposition made by The Alliance for Solar Choice (TASC) in order to conduct similar research, but at a tenth of cost to ratepayers.
Even though this settlement is not 100% defectless, the rules and regulations put in place will reassure independent solar energy utilities that the monopolies will not be able to use their profits (which are government guaranteed) in order to drive out competition, a move directly conflicting with the core principles of being a Republican.
Monopolies fear the energy independence gained from rooftop solar systems
Tell Utilities Solar Won’t Be Killed (TUSK) was put together in order to stand for independence and free choice regarding energy. The core principles driving TUSK is the belief that rooftop solar is the same as a charter school, in the way it is providing healthy competition/alternative to the monopolies run by the utilities.
Monopolies are not recognised for cost effective business innovation, though the solar industry is. Solar energy utilities have a great track record of rapid cost reductions over a relatively short time span.
The more households that implement rooftop solar power means less power will be bought from utilities. This equals energy independence, which means fewer profits made by the monopolies. That’s why these power player utilities are doing everything in their power to stop the rapid spreading of independent solar power options.
Photo by: Walmart on Flickr
