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SRP Asks Court to Dismiss SolarCity Lawsuit |
SRP Asks Court to Dismiss SolarCity Lawsuit
Ryan Randazzo, The Republic | azcentral.com 12:48 p.m. MST June 24, 2015 -- Salt River Project has asked a judge to dismiss a federal antitrust lawsuit filed against the utility over a rate hike imposed on solar customers.
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SRP's elected board of directors voted in February to add a new "demand fee" to customers who have installed solar since Dec. 8. The fee is based on the highest 30-minute use of electricity during the month and, combined with other rate changes, will add about $50 a month to solar customers' bills unless they change the way they use power.
Customers who applied to SRP to connect solar panels before Dec. 8 escape the new rate for up to 20 years.
SolarCity Corp. of California, the largest rooftop installation company in the state, filed a lawsuit in response to the rate hike in March.
The suit in U.S. District Court for Arizona accused SRP of "anticompetitive and tortious conduct designed to eliminate solar competition."
SolarCity claims SRP's rates violate the federal antitrust act and state antitrust laws.
"Because solar customers are unable to completely disconnect from SRP's grid ... they cannot escape SRP's penalty," the suit says.
SRP officials said in the motion to dismiss that the board approved the new rates following a "robust public process" where SolarCity had the opportunity to share its concerns with the rates.
SRP's rates are set by 14 directors elected to the board by people who own land in the utility's territory. The process for raising rates, or introducing new rates as they did with solar customers, is laid out in state law. After publicly disclosing the rate plan in December, the board voted in February as the law requires.
"Having failed to advance its policy and commercial objectives before the (SRP) board, SolarCity now asks this court to insert itself as (SRP's) rate regulator and replace the results of the regulatory process the Arizona Legislature has prescribed for setting (SRP's) electricity rates with its own judgment," the SRP motion said.
"But the federal courts are not intended to be rate regulators and the antitrust laws are not designed to replace Arizona's state regulatory and political process."
SolarCity threatened to sue before the SRP directors voted. Despite the threat, directors decided on a 12-2 vote the new fees were acceptable.
SolarCity reports 7,000 customers in SRP territory, or about 46 percent of the customers with solar in that utility territory.
SRP's managers said customers can mitigate the peak demand charge by reducing the power they draw at once during periods of high demand. They can do this by pointing solar panels west, to the setting sun, to produce more energy in late afternoon when demand spikes, or by limiting appliance use at peak times, officials said.
In May, SolarCity announced it was relocating at least 85 of its 900 Arizona workers out of state, with more to come. SolarCity CEO Lyndon Rive said the SRP fees are too restrictive and eliminate the potential to save money with solar for nearly all customers.
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