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Arizona Daily Star
Tucson, Arizona | Published: 12.18.2008
State regulators approved a plan Tuesday that will more than double the amount Tucson Electric Power Co.'s average residential customers pay to support renewable energy.
For a typical household, the monthly surcharge for renewables will go from $1.61 to $4.29, a roughly 166 percent increase. The new charge will go into effect Jan. 1.
For large commercial customers like shopping malls and grocery stores — which can have electricity bills that exceed $100,000 — the charge will go from $39 to $336.86, said TEP spokesman Joe Salkowski.
While that's nearly a ninefold increase, it's only a small percentage of those customers' total bill, Salkowski said.
TEP's plan will generate about $29.7 million, which will be invested in renewable energy programs, Salkowski said.
The utility has nearly 400,000 customers in Southern Arizona.
The Arizona Corporation Commission passed TEP's renewable energy standard and tariff implementation plan in a 3-2 vote with commissioners Kris Mayes, Jeff Hatch-Miller and Bill Mundell supporting it.
Chairman Mike Gleason and Commissioner Gary Pierce dissented.
The commission also approved implementation plans for UniSource Energy Services Inc. and Arizona Public Service in 3-2 votes with the same breakdown.
At UniSource, which provides gas and electricity to about 236,000 customers in rural Southern and Northern Arizona, the surcharge increased from $1.61 to $3.57 for the average residential customer.
The plan for APS — with a service area in and around Phoenix — means a monthly bill increase of about $1.80 for a typical residential customer.
Regulations adopted by the ACC require utilities to generate 15 percent of their energy from renewable sources by 2025 with gradual increases each year. Utilities must get 2 percent from renewables in 2009 — up from 1.75 percent in 2008.
For 2009, 15 percent of the renewable energy generated must come from distribution sources located at customer sites, such as solar panels attached to rooftops.
Pierce said he opposed the recently adopted plans because they require the energy from distribution sources to come equally from residential and commercial sites. That means a utility may have to limit energy produced from commercial sites so it matches the production from residential sources.
"The commission is proving to be inflexible on making needed tweaks in the plan," Pierce said. He said he would support a plan that allowed utilities to get more energy from commercial sources rather than residential ones — or vice versa — so long as ACC regulations are met.
Conversely, Mundell touted the plan in a prepared statement.
"As the costs and our dependence on fossil fuels from hostile parts of the world continue to rise, it is imperative that we utilize renewable energy to the fullest extent possible," he said.
The commission also unanimously passed a plan for Arizona Electric Power Cooperative, which includes Trico Electric Cooperative Inc. and its customers throughout the Tucson area. That plan will not result in a change in Trico customers' bills, said cooperative spokeswoman Romi Wittman.
● Contact reporter Dale Quinn at 573-4197 or dquinn@azstarnet.com.
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