2016 RATE REVIEW
Rate Review agreement highlights
for residential customers
APS and a broad, diverse group of stakeholders have reached a far-ranging agreement on
our first rate review in five years. If approved by the Arizona Corporation Commission (ACC),
the agreement will support our investment in a cleaner, smarter energy infrastructure, more
choice and control through new rate options for customers, and continued solar leadership
for Arizona.
A cleaner energy mix
• Investment in the Ocotillo Modernization Project for a cleaner, more efficient plant
• Added investment to reduce emissions at Four Corners Power Plant
•Continue industry-leading performance at Palo Verde Nuclear Generating Station,
which produces 80% of Arizona’s carbon-free electricity
A reliable power grid that encourages innovation
• Invest significantly in upgrades and maintenance for stronger, smarter infrastructure
• Spend $10 million to $15 million per year in an updated AZ Sun rooftop solar program
•Fund the continued development of innovative technologies such as battery storage,
microgrids and advanced solar research
•Implement an advanced energy management system, plus hundreds of smaller projects
to enhance safety, efficiency and customer value
More customer control of their energy costs
• An updated time-of-use (TOU) rate plan with a winter super off-peak period
•Two optional demand rate plans, plus a pilot program that supports home energy technologies
•Additional savings with two more off-peak hours on weekdays and four more off-peak holidays
• Refund $15 million of surplus energy efficiency program funds to customers
Safeguards for select customer groups
• Increased funding for limited-income customer programs, including emergency bill assistance
• A simple rate option for customers who use less energy
• Grandfathering for existing private solar customers
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The Details
Reduced and realigned
on-peak hours
Grandfathering for
solar customers
Updated rate plans
Customers can save with two
Existing private solar customers
The agreement includes rate options
additional off-peak hours each
would be grandfathered for 20 years
that create more choices for customers
weekday and on-peak hours moved
under the rules in place at the time
to control their energy costs. Among
to later. This more accurately reflects
of their interconnection. The rules
the options:
when customers’ peak usage and
would stay with the property even
• An updated TOU plan that
energy costs are highest.
if the customer moves.
Current on-peak hours
New private solar customers would
(noon—7 p.m.)
be grandfathered under current
includes a winter super off-peak
period of 10 a.m.–3 p.m. to
encourage energy use at midday,
11
when solar production is abundant
• Two optional demand rate plans,
plus a pilot program that supports
home energy technologies, all of
10
9
10
8
9
which provide customers more
who use less than 600 kilowatthours monthly
7
(3—8 p.m.)
10
11
7
7
•Stagger the use of major appliances
during on-peak hours
6
6
2
1
5
3
2
4
3
4
5
1
11
8
•Shift the use of appliances
to off-peak hours
12
rules if we receive their completed
1
Proposed on-peak
12 hours
9
10
8
9
OTHER WAYS TO SAVE
7
8
opportunities to save
• An extra-small rate for customers
11
12
12
6
6
2
1
5
3
2
4
3
4
5
VARIABLE
Peak usage
Added holidays
with off-peak pricing
New way
to cover
grid costs
VARIABLE
Total energy usage
Lower cost
for electricity
new rates and the system is installed
within 180 days.
Options for future solar
customers
Future private solar customers
choose from rate options, including
a TOU rate plan with a grid access
charge or demand rate plans without
a grid access charge.
The credit they receive for excess
energy sent to the grid would start
at 12.9 cents per kilowatt-hour,
pending a final determination
•Save on your overall usage
FIXED
application by the effective date of
in the proceeding.
The agreement preserves our
proposal to add four more off-peak
holidays, for 10 days total when most
customers can save all day. The new
holidays are: Martin Luther King Jr.
Day, Presidents Day, Cesar Chavez
Day, Veterans Day.
Bill Impact
The monthly bill for a typical residential customer (using 1,083 kWh) is projected to rise 4.5%, or about $6.
What’s Next
The ACC hearing officer will conduct a hearing and file a recommendation to the commissioners. They will consider
the recommendation in an open meeting and can vote to accept, reject or modify it. The commissioners are expected
to issue a decision this summer.
APS would not request another general rate review before June 1, 2019, three years between filings.
CS#1702097R1
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