The Arizona Court of Appeals unanimously overturned a monthly fee that Arizona Public Service had been charging solar customers, a surcharge of a few dollars that regulators approved alongside a 2024 rate hike to cover what the utility called extra costs of providing backup power. The court found APS never actually asked for a solar-specific charge in its rate application and never proved that solar customers caused those extra costs.
The judges also ruled that solar advocates, customers, and the Attorney General's Office were denied due process because the public notice gave no indication a solar fee was even under consideration. The Corporation Commission must now hold a new hearing on the charge or drop it entirely. Solar groups celebrated the ruling, while the commission chair signaled the fee could survive a properly noticed hearing and APS said it is reviewing the decision.
