WILL ARIZONANS PAY 84 CENTS/MONTH FOR NEW ENERGY?

Will people pay for renewables? If they do so in significant numbers, will say it defies the assumptions of economics. But in the area of energy, human behavior FREQUENTLY defies economic assumptions. Until you start figuring in the hidden externalities associated with the consumption of carbon.

APS pushes ratepayers to pay for renewable energy; Extra cash would help state meet alternative-energy goal by 2025
Ryan Randazzo, August 29, 2007 (The Arizona Republic)

WHO
Arizona Public Service Co. (APS), one of Arizona’s biggest utilities; Salt River Project (SRP), another utility; Arizona Corporation Commission (ACC);

APS covers a lot of territory. (click to enlarge)

WHAT
To meet Arizona’s Renewable Electricity Standard (RES) which requires utilities to obtain 15% of electricity from renewable energies, APS wants to add 84 cents to an already approved rate bill tariff.

WHEN
- The Arizona RES of 15% must be met by 2025.
- ACC approved a $1.05/month tariff on power bills in October 2006. APS wants to make that $1.89.

WHERE
APS and SRP serve the Phoenix area. Aragonne Mesa Wind Farm is in New Mexico. Imperial Valley geothermal power plants are at the Salton Sea in California.

WHY
- The Arizona RES requires 30% of the renewable-sourced 15%, or 4.5% of total electricity, must come from distributed sources such as home solar systems.
- APS sees large numbers of power customers installing home solar systems and paying for power clean energies. 1400 home solar systems were installed in the last decade.
- APS’ “Green Choice” program also allows customers to pay an extra 1 cent/kilowatt-hour on their bill toward APS contracts with Aragonne Mesa Wind Farm or Imperial Valley geothermal power plants. APS average household: 1,160 kilowatts/month = $11.60/month extra for renewable sourced electricity.
- Current subsidies allow homeowners to by a $21,000 solar system for $9,000.
- 3 of the 4 ACC members favor allowing the tariff increase. Only the chairman opposes it.

One thing for sure: Arizona has the sun to support the move to solar. Once Arizonans get electricity from the sun, they'll turn their backs on coal and nuclear and run. (click to enlarge)

QUOTES
- Barbara Lockwood, APS renewable-energy manager: "We think we can do more than that…[15% renewable sources] is a substantial number. We will really be motivating our customers…We give them cash for installing solar-electric and solar-water systems…"
- Lockwood on “Green Choice” projects: "We are currently looking for more big projects both to run and to buy from…"
- Corporation Commissioner Kris Mayes: "We know most Arizonans are willing to pay a tiny bit more to spur a marketplace for renewable energy…"
- Corporation Commission Chairman Mike Gleason: "Everybody keeps saying the cost of renewables is going to come down…Well, fine. Let California and everyone else develop it, and when it gets competitive, we'll step in."