New Mexico Commission Could Eliminate Stand-by Fees On Solar Customers

By Frank Andorka, Senior Correspondent

An ongoing controversy in New Mexico over stand-by fees on solar customers may finally becoming to an end, according to an article in the Santa Fe New Mexican.

A hearing officer recently recommended that regulators make Southwestern Public Service Co. stop collecting a “standby fee” from customers with solar systems, saying a study the utility used to justify the fees is “riddled with errors and unreliable.”

Color me shocked (not shocked): A utility is using flawed materials to justify treating solar customers like separate-class citizens. Sounds an awful lot like the “cost shift zombie myth” we spend a lot of time debunking around these parts.

Wait, the zombie lie is part of this bad information? Of course it is.

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As hearing officer Carolyn Glick wrote in her finding suggesting the fees be done away with:

the company failed to demonstrate the surcharge “appropriately recovers the costs of ancillary and standby services” used by solar customers or that the fees are “based in any actual difference in costs the company incurs to serve [solar] customers.”

Glick wrote that Southwestern Public Service can’t show it “provides distinct ‘standby service’ for [solar] customers that it does not already provide to all full-requirements customers.” She also said the utility can’t show that solar customers “are not already paying their proportionate share of system costs.”

Solar advocates like Vote Solar and the Coalition for Clean Energy blame the fees for stunting solar growth in the state, which goes against other efforts by the state to encourage solar growth, including requiring utilities to include storage in their long-term resource plans and the creation of a disclosure form that makes installing solar much safer for consumers.

At the end of the day, these “stand-by” charges are just fixed charges by another name. Here’s hoping the New Mexico Public Regulation Commission recognizes them for the price-gouging they are and eliminates them from solar customers’ bills.

More:

PRC asked to end fee charged to Eastern New Mexico solar users