Arizona regulators, considering tariffing the Arizona Public Service Co., have voted to abolish a fee paid by rooftop customers and not make customers pay for part of APS’s expenses for a New Mexico power plant .
Various changes the Arizona Corporation Commission approved so far in the current tariff case would reduce APS’s annual revenue by an estimated $ 125 million, the Arizona Republic reported.
The commission approved several changes on Wednesday, and the others followed suit. The Commission plans to vote on the tariff package on November 2nd, when it expects calculations of the financial implications for APS and its customers.
The board of directors sets tariffs and makes decisions on certain operational matters relating to tariffs for the investor-owned Arizona utilities.
The abolition of the “network access fee”, which was implemented in a 2017 tariff case, would save an APS customer with a 7-kilowatt-hour roof-top system $ 7 per month.
The Commission has decided not to allow APS to bill its customers $ 215.5 million of its $ 450 million in environmental control expenses at the Four Corners power plant near Farmington, New Mexico.
APS has been trying to fund Four Corners’ expenses since its 2016 tariff case, but the commission approved an amendment saying that spending the $ 215.5 million would be unwise as APS now plans to keep the work for nearly a decade to close earlier than expected.
In other amendments approved on Wednesday, the commission agreed:
– Reduction of the “peak time” for electricity tariffs with usage time from five to three hours.
Provide $ 10 million to communities, including the Navajo and Hopi tribes, affected by the coal-fired power plant shutdown.
The Commission had previously voted to reduce APS’s potential profits by cutting the company’s approved profit on its expenses from 10% to 8.7%.
The company threatened a lawsuit earlier this week if the Commission’s cuts were too severe.
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