Lawsuit says Alabama blocking solar power with unfair fees
The fees imposed by the Alabama Power company on customers who generate their own electricity with rooftop or on-site solar panels are now the subject of a federal lawsuit against the state’s regulators. Environmental groups argue that punishing fees are purposely discouraging the adoption of solar power in the sun-rich state. Alabama Power maintains that the fees are needed to maintain the infrastructure that provides backup power to customers when their solar panels don’t provide enough energy. The Southern Environmental Law Center and Ragsdale LLC filed the lawsuit on Monday against the Alabama Public Service Commission on behalf of four Alabama Power customers who installed solar panels on their properties and the Greater-Birmingham Alliance to Stop Pollution, or GASP. “We’re asking the court to require the Commission to follow the law so that Alabama Power will stop unfairly taxing private solar investments,” said Keith Johnston, director of SELC’s Alabama office. “Alabama is being left behind by other Southern states when it comes to solar generation, and the jobs, bill savings, and other benefits that come with it,” SELC’s statement said. “These charges are a significant roadblock to our state’s success.” A spokesperson for the Public Service Commission wrote in an email that “it would not be appropriate for the Alabama Public Service Commission to comment on pending litigation.” Alabama Power charges a $5.41-per-kilowatt fee, based on the capacity of the home system, on people who use solar panels or other means to generate part of their own electricity. That amounts to a $27 monthly fee on a typical 5-kilowatt system. The average solar panel setup for home costs about $10,000, according to the law center, and the fees add another $9,000 or so over a system’s 30-year lifespan, dramatically increasing costs and reducing any financial benefit for the homeowner. Alabama Power maintains that the fees are needed to maintain the infrastructure that provides backup power. A spokesperson for Alabama Power said, “We believe Alabama law and sound rate-making principles were followed in reaching a fair determination of the cost for this service.” “It is important to us that all of our 1.5 million customers are treated fairly. There is nothing about the lawsuit that changes our position – we believe the lawsuit is without merit. Customers who want to rely on the company to back up their own generation should pay their share of associated costs,” Alabama Power spokesperson Alyson Tucker wrote in an email. The Federal Energy Regulatory Commission rejected the environmental groups’ request to take enforcement action last month against the Public Service Commission. However, two members of the five-member panel issued a separate statement expressing concern that Alabama regulators may be violating federal policies designed to encourage the development of cogeneration and small power production facilities and to reduce the demand for fossil fuels. Republished with the permission of the Associated Press.
Federal court challenge looms over Alabama solar panel fees
A federal regulatory group will not take action against the Alabama Public Service Commission over fees allowed on home solar panels, but the group’s chairman expressed concern that the state might be violating a federal law designed to encourage alternative energy sources. The Federal Energy Regulatory Commission rejected a request from environmental groups to take enforcement action against the Alabama regulators that approved Alabama Power’s fees on home solar panels and other home power generation. However, two members of the five-member panel, Commission Chairman Richard Glick and Commissioner Allison Clements, issued a separate statement Wednesday to express concern that Alabama regulators may be violating federal policies designed to encourage the development of cogeneration and small power production facilities and to reduce the demand for fossil fuels. Their statement expresses a concern “that the Alabama Public Service Commission may be violating the Commission’s (Public Utility Regulatory Policies Act or PURPA) regulations, undermining the statute’s purpose of encouraging qualifying facilities.” Alabama environmental groups said Thursday that they are prepared to pursue action in court. Homeowners and environmental groups have been trying to challenge Alabama Power’s fees on home solar panels and other independent energy production, arguing that the fees purposely discourage the use of solar in the sun-rich state. “We are now prepared to take the next step of seeking relief from a federal district court so that Alabama Power customers can finally reap the benefits of solar to the same degree as customers in other solar-rich states,” said Keith Johnston, director of Southern Environmental Law Center’s Alabama office. Michael Hansen, executive director of the environmental group GASP, said Alabama’s unjust, discriminatory treatment of solar customers is stifling solar growth across the state and undermining PURPA’s basic aim of encouraging the development of solar. The Alabama Public Service Commission upheld the fees, which Alabama Power says are needed to maintain the infrastructure that provides backup power to customers when solar panels don’t provide enough energy. Alabama Power charges a $5.41-per-kilowatt fee, based on the capacity of the home system, on people who use solar panels, or other means, to generate part of their own electricity. That amounts to a $27 monthly fee on a typical 5-kilowatt system. The average solar panel setup for a home costs about $10,000, according to the Environmental Law Center. The fees add another $9,000 or so over the 30-year-lifespan of a system, dramatically increasing a homeowner’s cost and reducing any financial benefit they see from solar. Alabama Power did not immediately respond to an email seeking comment, but a spokeswoman said earlier this year that the fees are needed to maintain the power grid. “Customers with on-site generation who want backup service from the grid should pay the cost for that service. If not, other customers unfairly pay the costs for those individuals and businesses,” Alabama Power spokeswoman Alyson Tucker said in April. Experts for environmental groups said the charge is unjust and eliminates much of the savings that customers expect to realize for their investments in installing solar panels. Republished with the permission of the Associated Press.
Homeowners, group seek action on Alabama Power’s solar fee
Homeowners and an environmental group are asking federal regulators to step in over Alabama Power’s fees on home solar panels, fees they argue purposely discourages the use of solar in the sun-rich state. The petition filed with the Federal Energy Regulatory Commission asserts that the Alabama Public Service Commission violated federal law when it upheld the fees. It asks the commission to initiate an enforcement action against the PSC and direct the state agency to order Alabama Power to sell electricity to solar customers at nondiscriminatory rates. “By imposing one of the highest fees on solar customers of any regulated utility nationwide, Alabama Power’s unjustified solar charges are severely curtailing renewable energy development in our state, and other states are leaving Alabama behind because of it,” Keith Johnston, director of Southern Environmental Law Center’s Alabama office. “We are asking FERC to exercise its authority to enforce federal protections for solar customers in Alabama Power’s service territory.” The action comes after the Alabama Public Service Commission last year upheld the fees and approved an increase. Alabama Power charges a $5.41-per-kilowatt fee, based on the capacity of the home system, on people who use solar panels, or other means, to generate part of their own electricity. That amounts to a $27 monthly fee on a typical 5-kilowatt system. The average solar panel setup for a home costs about $10,000, according to the Environmental Law Center. The fees add another $9,000 or so over the 30-year-lifespan of a system, dramatically increasing a homeowner’s cost and reducing any financial benefit they see from solar. Alabama Power has maintained the fee is needed to maintain the infrastructure that will provide backup power to customers when the solar panels don’t provide enough energy. “Alabama Power is focused on providing customers with safe, reliable, cost-effective energy. This issue was fully examined by the Alabama Public Service Commission, which included a lengthy public hearing, with the plaintiffs choosing not to pursue the case further in state court,” Alabama Power spokeswoman Alyson Tucker wrote in an email. “Customers with on-site generation who want backup service from the grid should pay the cost for that service. If not, other customers unfairly pay the costs for those individuals and businesses,” Tucker said. Experts for environmental groups said the charge eliminates much of the savings that customers expect to realize for their investments in installing solar panels. Teresa Thorne, who had a four-kilowatt system installed on her roof in Blount County, Alabama, told The Associated Press last year that the fees, “cuts my savings in half.” “Alabama Power’s monthly fee makes it extremely difficult for people like me who want to install solar to lower their monthly bills and generate clean energy,” Thorne said in a statement released by the Southern Environmental Law Center. Republished with the permission of the Associated Press.
Regulators uphold Alabama Power’s fees on solar, OK increase
The Alabama Public Service Commission voted to dismiss a challenge by environmental groups who argued the fees were excessive and against the public interest.
