An Arizona Court of Appeals panel still won’t let Arizona Public Service levy an extra fee on customers who have solar panels on their homes.
The Arizona Corporation Commission originally approved the fee as part of an APS rate increase in 2024, allowing the utility to charge solar customers an extra $2 to $3 per month to cover what it characterized as “extra costs” to provide power to those residents if their panels fail or don’t generate enough electricity.
The Court of Appeals then blocked the fee in June after finding regulators didn’t give opponents the opportunity to argue against that fee before they approved it — and that APS never provided evidence that solar customers are responsible for increased costs.
APS and the Corporation Commission asked the court to reconsider, arguing pro-solar groups were allowed to argue their position at a rehearing held by the commission in December 2024.
The commission ultimately upheld the fee after that hearing.
But the Court of Appeals found the commission still didn’t give opponents “a full and fair opportunity to contest the solar-specific charges.”
For instance, the court pointed to a decision by the administrative law judge overseeing the hearing to cut off testimony by an economist who served as a witness for the Arizona Attorney General’s Office, which opposed the fee.
The decision negates the extra fee on solar customers, though the Corporation Commission can hold another rehearing to give opponents a better opportunity to make their case.
An APS spokesperson said the company plans to appeal the decision to the Arizona Supreme Court.
“APS would like additional review so that we can ensure appropriate rates for residential customers with rooftop solar. APS remains committed to providing safe, reliable service while supporting rates that are fair for all customers,” APS spokesperson Ann Porter said in an email to KJZZ.
A Corporation Commission spokesperson said the decision is under review by the Office of General Counsel, which provides legal services to the agency.

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