Arizona First State to Require Solar Power Generation

By Cat Lazaroff

http://ens.lycos.com/ens/apr2000/2000L-04-27-07.html

[Fair Use: For Educational/Research Purposes Only]

PHOENIX, Arizona, April 27, 2000 (ENS) - Arizona has become the first state to require electric utilities to produce a portion of their power from solar energy. Wednesdays vote by the states Corporation Commission may increase utility bills for state residents, but could boost solar power in one of the nations sunniest states.

[Caption: A 450 kilowatt photovoltaic array at the U.S. Army Yuma Proving Grounds in southwestern Arizona (All photos courtesy National Renewable Energy Laboratory)]

The three member Corporation Commission voted unanimously to approve a measure that will require utilities and other electricity providers to produce a small percentage of their electricity from solar and other renewable resources.

Under the Solar and Environmentally Friendly Portfolio Standard, electricity providers may have to derive 1.1 percent of their total product from renewable resources by 2007. At least 27 other states also mandate renewable sources for utilities, but Arizona is the first to require that solar energy make up a specific portion of that power.

The Standard requires providers to produce at least 50 percent of their renewable power from solar generating facilities. The remainder will come from other renewable sources, including methane from landfills, wind power and biomass generators.

By January 1, 2001, utilities must produce 0.2 percent of their electricity from renewable sources. By 2004, that amount will increase to 0.8 percent. The 1.1 percent requirement by 2007 will only be enacted if prices for renewables drop closer to prices for traditional power sources. The Commission will determine whether to enforce that higher percentage.

[Caption: The Arizona Public Service Company is testing a high concentration solar system at its Solar Test and Research (STAR) Center in Tempe (Photo by Bill Timmerman)]

Utilities say solar power currently costs five to 10 times more than conventionally generated electricity. Customers will be asked to shoulder part of the burden of the higher priced energy through per-month surcharges. The maximum per month increase would be 35 cents for residential electric bills and $13 per meter per month charge for most businesses, the Commission says. The largest businesses, including many of the states mining industries, will pay $39 per meter per month more than their current bills.

The renewable power will also be funded by a systems benefit charge, which customers are now paying for consumer education programs.

Last year, the Commission rejected a proposal to require that one percent of all energy sold in Arizona come from solar sources. That plan had no cap on costs to consumers.

[Caption: At the Backus Ranch in Arizona, this solar electric system meets various needs for power (Photo by Bob Hammond, Arizona State University)]

Supporters of the plan, which include environmental groups and the solar industry, point out that national surveys have shown that a majority of consumers would be willing to give up electricity deregulation driven price cuts in order to opt for renewable power.

State utilities said the plan may cost more than the estimated $3 million that the new surcharges will raise, which could prompt them to ask the Commission for larger rate increases in the future.

The Arizona Public Service Co. (APS), the states largest electric utility, already offers solar power. The company says its Solar Partners program, which charges customers a premium for power generated from small solar plants in Tempe and Flagstaff, has more customers than it can currently serve.

APS announced this week it plans to double the amount of solar energy it uses to generate electricity. The company will install 388 kilowatts (kW) of solar photovoltaic (PV) panels at proposed sites in Yuma, Prescott, and on either side of Phoenix to the east and the west. These installations will complement the 172 kW installation announced earlier this month for the Glendale Airport and the recent two kW PV installation on top of San Luis City Hall.

[Caption: APS is evaluating the performance of the latest in Dish Stirling Solar power systems at its STAR Center in Tempe (Photo by Bill Timmerman)

"Because solar energy does not rely on non-renewable resources drawn out of the earth, nor does it have any emissions from the conversion into electricity, solar electricity holds promise for the earth's energy future," says Ed Fox, APS' vice president of environmental resources. "APS is proud to be leading the way toward furthering the development of this earth smart technology."

The solar projects are funded by APS, its Solar Partner customers and, when funds are available, the U.S. Department of Energy. The new solar facilities will be installed over the next year.

"With more than 350 days of sunshine per year, everyone recognizes that Arizona is the perfect place to develop and install solar electric generation," says Fox. "Currently, solar generation costs five times more than traditional non-renewable generation sources but, with the help of our customers, the increased demand will bring the price down."

-- Anonymous, April 30, 2000