APS pushes for elimination of net-metering and unprecedented mandatory demand charges

Facebook
Twitter
LinkedIn
Reddit
Email
APS wants the commission to approve a US$3.6 billion investment over the next three years, which would result in an average annual bill increase of 7.96% for residential customers. Source: Arizona Public Service

Arizona Public Service (APS) has requested the Arizona Corporation Commission for the first rate review in five years, with proposals that include an unprecedented mandatory demand charge and the elimination of net-metering.

Specifically, APS wants the commission to approve a US$3.6 billion investment over the next three years, which would result in an average annual bill increase of 7.96% for residential customers. APS is also asking the ACC to approve a lower volumetric charge and three demand charge options for residential customers:

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The first two options are for US$6.60kW and US$8.40kW and would remain stale for both the winter and summer months. The third option, designed for high peak usage, was pitched at US$16.40kW for summer and US$11.50kW for winter. A flat-rate bill option would be made available for customers who do not wish to actively manage their energy use, according to the filing.

APS is not the first utility to try and impose residential demand charge options on its customers. Chicago’s ComEd has recently come under fire with its controversial Next Generation Energy Plan, which unsuccessfully sought to introduce a mandatory demand charge. Fellow Arizonan public utility Salt River Project actually instituted a demand charge for its customers at the beginning of this year.

The proposals were met with some cynicism from the solar industry, especially as Arizona was once considered a pioneer for rooftop solar; but has seen progress decline due to internal utility attacks.

Kris Mayes, of the Energy Freedom Coalition of America (EFCA), voiced concern about the APS proposal in a statement: “Demand charges are a dangerous plan that will force customers to constantly monitor their energy use out of fear of exorbitant charges. They especially penalize customers who have made substantial investments to reduce energy and contribute to more resilient Arizona energy future.

“The loss of net metering in Arizona would mean the loss of thousands of jobs and consumer choice. Arizona will take a giant step backwards in transforming its energy future if this proposal is approved.”

“This effort by APS to impose demand charges poses a serious setback to the ability of all Arizonans to produce their own power,” said Dru Bacon, co-chairman of The Conservative Alliance for Solar Energy (CASE). “We call on the Commission to reject this anti-competitive plan.”

APS, for its part, insinuated that net-metering was outdated. “It’s time for our industry to adapt its pricing model to reflect new energy technologies and the changing way customers are using electricity,” said Don Brandt, CEO of APS, in a statement. “There will be the usual naysayers who want to protect the status quo for their short-term financial gain, but Arizona has delayed too long already.”

The utility’s proposals in the its filing are subject to review by the ACC. This process is expected to take around a year. 

16 June 2026
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 16-17 June 2026, will be our fifth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2028 and beyond.
13 October 2026
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 13-14 October 2026 is our fourth PV CellTech conference dedicated to solar manufacturing in the USA. From polysilicon, wafers, ingots, cells and modules, to critical component suppliers including glass and frames, the event connects every stage of the value chain under one roof. PV CellTech USA also brings together investors, innovators, manufacturers and industry stakeholders to collaborate and strengthen domestic solar manufacturing across the United States.

Read Next

May 21, 2026
Spanish independent power producer Grenergy has signed a long-term hybrid power purchase agreement (PPA) with US utility Georgia Power.
May 21, 2026
Developers of co-located solar-plus-storage projects need to ensure their projects are designed to ‘solve’ the challenges faced by offtakers.
May 20, 2026
Canadian energy firm Enbridge will develop a 365MW/1,600MWh solar-plus-storage project in Wyoming, US, as part of an ongoing partnership with tech and data giant Meta.
May 20, 2026
The California Independent System Operator (CAISO) Board of Governors has approved the ISO’s 2025-2026 transmission plan, which accommodates 45 GW of new solar PV.
May 20, 2026
Price is the main barrier to PPAs being transacted in the UK market today, a panel at the Renewable Procurement and Revenue Summit said.
May 20, 2026
The US$300 million North Star platform will target investments across solar, wind, hybrid and energy storage projects. 

Upcoming Events

Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Media Partners, Solar Media Events
June 2, 2026
Johannesburg, South Africa
Media Partners, Solar Media Events
June 3, 2026
National Exhibition and Convention Center (Shanghai)
Solar Media Events
June 16, 2026
Napa, USA