Environment Arizona applauds removal of demand charges from APS proposal

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Environment Arizona

PHOENIX – Today, stakeholders announced a settlement in the proposed rate case for Arizona Public Service (APS). The settlement rejects mandatory demand charges for residential customers originally proposed by APS.

The settlement raises rates at a lower amount than originally proposed by APS. It also begins to institute a new crediting system for rooftop solar, grandfathering in existing solar users and lowering payments to new solar users over time. The settlement is subject to approval by the Arizona Corporation Commission.

Today’s settlement marks yet another defeat of residential demand charges proposed by utility companies across the country. 

Environment Arizona’s Bret Fanshaw issued the following statement:

“We applaud the proposed APS settlement for removing mandatory demand charges for residential customers. These charges would have hurt rooftop solar in Arizona.

“We remain concerned about other aspects of the rate case, such as higher fixed charges and reduced credits to new rooftop solar customers.

“States around the country look to Arizona for solar leadership. Our leaders should continue to encourage the advancement of solar power and reject proposals that would create barriers to the growth of clean energy.”

Environment Arizona was not a party to the settlement announced today.


Environment Arizona is a state-wide, citizen-based environmental advocacy organization working for clean air, clean water and open space.