The Federal Energy Regulatory Commission on Thursday declined to launch an enforcement action against the Salt River Project over its residential solar rules, clearing the way for possible court action.
The decision stems from a petition filed in January by Vote Solar and several SRP customers arguing that the public power utility’s rooftop solar rules were discriminatory, in violation of the Public Utility Regulatory Policies Act, known as PURPA.
The petition alleged that SRP makes customers with solar panels pay discriminatory fixed charges and reimburses them at rates less than the Tempe, Arizona-based utility’s full avoided cost.
In a concurring statement, FERC Commissioner Mark Christie said he was persuaded by arguments from SRP, the National Association of Regulatory Utility Commissioners and the American Public Power Association and other trade groups that the dispute belongs in state court.
“Petitioners challenge SRP’s rate design as applied to retail customers with rooftop solar [photovoltaic] panels located behind-the-meter,” Christie said. “Such challenges to retail rates are subject to exclusive state jurisdiction. Moreover, petitioners have not established that they are entitled to PURPA rights for their behind-the-meter rooftop solar panels.”
However, FERC Commissioner Allison Clements said the claims being made by residential customers does not automatically place the dispute under state jurisdiction.
“While states and relevant non-jurisdictional entities such as SRP have retail rate authority, PURPA provides for federal jurisdiction over a utility or retail authority’s implementation of PURPA’s obligation to purchase from and sell to qualifying facilities,” Clements said. “Further, it is clear that behind-the-meter rooftop solar arrays owned or leased by residential customers can be qualifying facilities.”
The dispute can go straight to court without the need for a rehearing request at FERC, according to David Bender, an Earthjustice attorney who represents Vote Solar and others in the case.
The Southern Environmental Law Center is pursuing a similar PURPA case in court against the Alabama Public Service Commission. SELC contends that Alabama Power’s rooftop solar rules violate PURPA.
