Arizona Public Service Co. customers may get a discount on their bills next month, thanks to excess revenue from a renewable energy credit program.
The average residential customer should expect a discount of roughly $12 on their November bills, according to an estimate from APS, although the size of the credit will vary based on personal energy usage.
APS received higher-than-expected revenue from the sale of renewable energy credits to participating businesses. Companies can buy the credits to help meet green energy goals.
The $33.6 million windfall will be distributed to customers next month as a credit applied on the Renewable Energy Adjustment Charge. The charge typically costs about $2.50 per month for the typical residential customer, but will be waived
in November.
Revenue from the Green Power Partners program goes toward funding renewable energy projects and cutting customer costs.
"Some of the revenue from GPP is in fact being used for renewable energy purchases, but the surplus was large enough at this time to provide a meaningful benefit to customers through a bill credit in addition to contributing to ongoing renewable projects," wrote APS spokesperson Ryan Randazzo in an email to The Arizona Republic.
The utility applied to disburse the surplus funds in September. The Arizona Corporation Commission approved distributing the credits at an Oct. 7 meeting. Regular Renewable Energy Adjustment Charge rates will return starting in December.
How do customers qualify?
Customers, including businesses, will automatically receive the credit.
Where will you see this on your bill?
The credit will appear at the bottom of customer bills in the "Adjustors" section. Typically, customers pay the "Environmental Benefits Surcharge", which is made up of two charges: the Renewable Energy Adjustment Charge, which funds renewable energy projects, and the Demand Side Management Adjustment Charge, which funds energy efficiency projects.
The $33.6 million will appear as a credit in the Environmental Benefits Surcharge section. Individual credit amounts will vary based on energy usage. Customers will still have to pay the Demand Side Management Adjustment Charge next month, which typically runs around 79 cents for the average residential user.
Has this happened before?
Yes. Credits were issued in July and August last summer. The credits were issued last year using leftover funds after energy efficiency and renewable energy goals were met.
What about the repeal of renewable energy standards? Does that impact the renewable energy surcharge?
The Arizona Corporation Commission voted unanimously earlier this year to repeal the Renewable Energy Standard and Tariff Rules, which required at least 15% of an electric utility's portfolio to be renewable by 2025.
But customers will still see the renewable energy surcharge on their bills as the utility seeks to pay for projects planned to meet those standards before the vote. APS filed a new implementation plan with the commission on July 1.
"APS requests that the Commission approve the funding for existing program commitments and the continued implementation of programs previously authorized by the Commission," the application says. "It is APS's understanding that recovery of these obligations through the Renewable Energy Adjustment Charge will continue regardless of the status of the RES rules repeal."
Alaina Mencinger covers tech, energy and utilities for The Arizona Republic. Reach her at Alaina.Mencinger@usatodayco.com.
This article originally appeared on Arizona Republic: APS customers will see one-time savings on November bills
