In response to concerns raised about Tucson Electric Power’s proposal to expand its utility-owned residential solar PV program and establish a new community solar program, the Arizona Corporation Commission has retained TEP’s proposed 2016 RPS Plan for an evidentiary hearing. TEP’s 2016 RPS Plan would expand its utility-owned residential solar PV program, currently authorized as a pilot (limited to 600 customers) to include an additional 1,000 customers, at a cost of $15 million, and with a flat monthly flat rate of $17.50. The enrollment term would be 10 years, with an early-termination fee. The proposal does not allow end-of-term purchases.

TEP’s proposed 2016 RPS Plan would also create a community solar program that involves the construction of a 5-MW, utility-owned PV system at a cost of $10 million. TEP also suggested allowing a community solar project to qualify as DG for the purpose of Arizona’s DG carve-out.

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