CEAC-2020-10-October

News
Regulators Uphold Alabama Power’s
Fees on Solar, OK Increase
By Kim Chandler | Associated Press
MONTGOMERY, Ala. (AP) — On Sept. 1, the state utility
board upheld Alabama Power’s fees charged to customers
who use solar panels to produce part of their home electricity,
fees that environmental groups argue are among the
highest in the nation and purposely discourages the use of
solar in the sun-rich state.
The Alabama Public Service Commission voted to dismiss a
challenge by environmental groups who argued the fees
were excessive and against the public interest. Commissioners
approved the recommendation of state utility board staff
members who ruled the fees “are just, reasonable, and not
unduly discriminatory.”
Alabama Power charges a $5-per-kilowatt fee, based on
the capacity of the home system, on people who use solar
panels, or other means, to generate part of their own electricity.
On Sept. 1, commissioners also approved an increase
to $5.41, which would amount to a $27.05 monthly fee on a
typical 5-kilowatt system, the law group said.
Alabama Power said the fee is needed to maintain the infrastructure
that will provide backup power to customers when
the solar panels don’t provide enough energy. Experts for environmental
groups said the charge eliminates much of the
savings that customers expect to realize for their investments
in installing solar panels.
The decision comes more than two years after the Southern
Environmental Law Center and a Birmingham-based law
firm, Ragsdale LLC, filed the complaint that challenged the
fees on behalf of two people and the environmental group
Gasp Inc.
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“Today’s decision by the Public Service Commission hurts Alabama
Power customers and our state,” Keith Johnston, office
director of Southern Environmental Law Center’s Alabama
office. “As the nation moves forward with cleaner energy
and the jobs that it creates, the commissioners and Alabama
Power continue to do everything they can to stop it. Not only
do they allow this unfair charge to citizens to continue, they
increase it.”
The average solar panel setup for a home costs about
$10,000, according to the Environmental Law Center. The
fees add another $9,000 or so over the 30-year-lifespan of
a system, dramatically increasing a homeowner’s cost and
reducing any financial benefit they see from solar.
Alabama Power argued that the fees are needed to maintain
infrastructure.
“We are pleased with the vote, which validates our longstanding
position: that customers with on-site generation
who want backup service from the grid should pay the cost
for that service. If not, other customers would unfairly pay
the costs for those individuals and businesses,” company
spokesman Michael Sznajderman said.
The Public Service Commission also asked the company to
propose a demand rate option for residential customers.
Sznajderman said the company is working to develop that.
The utility regulatory board’s November hearing on the
issue grew testy at times. Solar energy proponents packed
the meeting, with many wearing “Let It Shine” stickers. At
least three audience members were ejected for recording or
live-streaming the proceeding with their phones.
The groups that challenged the fees in Alabama said they are
reviewing their next steps.
“It is unfortunate that the commission has once again put
the interests of Alabama Power over cleaner, more affordable
choices that would greatly benefit Alabamians, our
economy, and the environment,” Gasp Executive Director
Michael Hansen said.
The issue of fees has arisen in New Mexico, Arizona and other
states, causing clashes between renewable energy proponents
and utilities. The Kansas Supreme Court in April ruled
that it was discriminatory to charge customers more if they
generate part of their own electricity.
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