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Arizona SRP proposing to halve Net Metering and jack Monthly Fees

Discussion in 'Mountain/Southwest' started by 3mp_kwh, Jan 29, 2015.

  1. 3mp_kwh

    3mp_kwh Member

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    #1 3mp_kwh, Jan 29, 2015
    Last edited: Jan 29, 2015
    I'm curious how many are aware of a proposal for a new rate design, with SRP?

    If you have solar, and get net metered out at their retail $.11 cent rate, brace yourself:

    For an 8kw system, on a home with >200 amp service, they want to:

    • Jump your $17/mnth fee, to $45.44 per month
    • Add a Demand Charge, per KW of your system. If ~30 panels peak just over 8kw, for 15 minutes, at any time during the month, you're looking at an $80.18 flat fee
    • Put you in a mandatory Peak/Off-peak plan, that pays $.063/kwh summer days, costs .0423 nights

    The peak 1PM-8PM period is more of a super peak, relative to others on TOU plans whose peaks can be 9-14 hours long. SRP customers, however, pay above $.20/kwh on peak. The utility just bought comercial solar power, for 5.3 cents/kwh from Sandstone Solar (21yrs). That price is being used to justify the roll-back on new customers. Add it all up, and the cash flows are much uglier, if by a February 26 end time, the utility board isn't guided in a different direction.

    The plan's mandated solar is under E-27
    http://www.srpnet.com/prices/priceprocess/pdfx/BlueBook.pdf

    This was the first time I've seen a commercial price shared with the public, for the sake of heavily watering down a net metering program. "We pay them this $$, why should we pay you more". Ouch. On a hypothetical 8kw system, generating about 1,200 monthly kwh, on a home that consumes the same amount, I get down to a bill for $110. The same amount of consumption, with no power sent back would yield a bill of about $160. The rate design doesn't do anything to recognize the base rate payer's impact on SRP's peak load (which is what raises costs the most).

    Demand charges are being tried in many, many places. You could plug in your Tesla, for 15 minutes during the month, remember that it was only 7:30PM, and then be slapped with a $127.30 demand charge, if your home's total load exceeded an average of 11kw for those 15 minutes.

    If base rates weren't about $.12/kwh, this plan would be more of an open invitation to battery storage.
     
  2. Cottonwood

    Cottonwood Roadster#433, Model S#S37

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  3. Tyl

    Tyl Member

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    #3 Tyl, Jan 29, 2015
    Last edited: Jan 29, 2015
    If proposed plans like this go into effect on solar homes, battery storage will become predominate. Solar homes will become energy self-sufficient and move off grid entirely. I do not wish these proposed SRP plans on any AZ solar homeowner, however if it occurs, then solar homeowners must adapt. Entirely off grid seems the best way to go.

    Fifteen years ago when cable TV rates climbed, I cut cable TV off 100%. I've never missed it. (I do have and HD antenna that provides most of what I want to watch). I got a lot of time back, enjoyed music more, and go to Hawaii much more frequently. A lot of $ saved as well!

    It will be a little weird to move off grid completely should this proposal go into effect, but we do have to do..... what we do have to do! It may take a little time, but we will be fine and perhaps better off in the long run anyway!

    BTW, I own a Tesla MS and also moved 95% off gasoline almost two years ago. It was a change, but a great one.! So going off grid with a utility that hikes up the bills with proposals like these may be a change, but, again, .......... one for the better:biggrin:

    :tongue:I'm just saying this 'cause I know we will be fine:love:
     
  4. 3mp_kwh

    3mp_kwh Member

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    I will be sure to give it a read. I think EEI and Moody’s Investor Services are at least as much to blame. The electric sector is a ~370 billion dollar industry, and corporate minds plot course. Hopefully enough people show up at the hearing, to at least stop the demand charge.

    The fact that SRP is making this grand “fixed cost” recovery argument, and not adjusting its rate design for ordinary customers, comes down to arbitrary targeting of solar customers. To add fuel to fire, why do they offer an $.11/kwh base rate, and penalize TOU customers with a $.20 peak and $.07 off-peak rate? Shift your load 1:1 to the off peak hours, and it will cost you money.

    This is where Moody’s comes in. I suspect they’re telling SRP to dare their customers to use batteries. I agree. It is foolish. Moody’s has a two week old study attempting to suggest a 30kwh daily customer would need 2,569kwh of battery storage. I kid you not. This is “professional research”. It completely neglects the mileage an on-grid customer could get from 15-30kwh, legal or not.
     
  5. MarkR

    MarkR Member

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    If SRP does this, you can bet that Arizona Public Service will be sure to follow.
     

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