Arizona Finalizes Net Metering Rules

ARIZONA – On October 16, 2008, the Arizona Corporation Commission (ACC) issued an order which finalized rules for state-wide net metering. The key points of this proposal were discussed in the April 2008 Connecting to the Grid. A review of the highlights include:

• Systems must be sized to meet all or part of a customer’s electric load in that the system may not exceed 125% of the customer’s total connected load. If there is no available load data for the customer, the generating system may not exceed the customer’s electric service drop capacity.

• There is no set aggregate cap specified for utilities; rather, individual utilities must demonstrate to the ACC why such a cap should be allowed.

• The ACC requires that net metering charges be assessed on a non-discriminatory basis. Any new or additional charges that would increase an eligible customer-generator’s costs beyond those of other customers in the rate class to which the eligible customer-generator would otherwise be assigned must be proposed to the ACC for consideration and approval.

• Net metering will be available to customers who generate electricity using solar, wind, hydroelectric, geothermal, biomass, biogas, combined heat and power (CHP) or fuel cell technologies.

Affected utilities will have until mid-January, 2009 to file proposed net metering tariffs. The ACC will then issue a decision on the tariffs within 120 days. These rules apply to all investor-owned and cooperative utilities in the state of Arizona with the exception of the Salt River Project (SRP does not fall under ACC jurisdiction).


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