The Arizona Daily Star reports today that Tucson Electric Power has received support from the Arizona Corporation Commission(ACC) for $14 million worth of new solar-energy projects proposed by Tucson Electric Power Co., including expansion of the company's massive photovoltaic array at Springerville. This move towards an alternative energy source, if final approval is give, will be funded initially by adding surcharges to all customers monthly bills starting next year. Starting in 2012 the costs would be shifted to TEP’s basic rate as opposed to being a surcharge and thus would seem to go away. It appears that we are on our way towards accomplishing a meaningful approach to alternative energy, which I am sure all of are in agreement with.
However I do have a few concerns and questions that need to be addressed. It appears that the plan would spread the costs over 20 years, while the surcharge is adjusted annually to pay for pending projects or programs like customer rebates. One question has to do with the ongoing surcharge and that is if it is open ended for as long as TEP continues to add new projects? It appears that this original surcharge is to cover the $14 million now being developed but there is no estimate of what might be scheduled in the future or what their costs would be.
My next question is who actually is developing the projects and who owns them? Are these private entities that will actually own the projects and are working in conjunction with TEP or is it actually TEP? If it is private enterprise why are customers paying to capitalize their “for profit” venture?
And finally, TEP sells large blocks of wholesale power to other energy suppliers and I am wondering if these major buyers have to pay the surcharge same as the “regular” customers or are they going to be exempt? If exempt, please explain why.
No comments:
Post a Comment