Ryan Randazzo, and Mary Jo Pitzl

The Republic | azcentral.com

Lawmakers could put a counterinitiative on the ballot opposing solar net metering

A ballot initiative announced last week would preserve solar net metering

Sen. Debbie Lesko opposes that measure and wants to put her own item to voters

Less than a week after a pro-solar group announced a ballot drive, lawmakers are working with utilities to put a counter measure before voters in November.

No language for the ballot referendum is yet available, but state Sen. Debbie Lesko said she is working on a measure that would send it to the ballot. She opposes the Arizona Solar Energy Freedom Act, which would force utilities to purchase most of the excess power from rooftop solar at retail prices and would prevent utilities from raising fees on solar customers.

In a system called net metering, utilities give customers full retail credits for their excess electricity. Utilities contend that they can purchase power on the open market, even from renewable sources, for less than the retail price paid to people with solar panels. Net metering helps customers lower their utility bills because the credits they get for excess power accumulate and offset power they draw from their utility.

On Friday, former Arizona Corporation Commission Chairwoman Kris Mayes announced she is leading an effort to place an initiative on the November ballot asking voters to amend the state Constitution and preserve net metering for six years, and prevent utilities from adding new fees to solar customers. Rooftop-solar leasing company SolarCity Inc. contributed $3 million to the effort, the committee said Tuesday.

MORE: Arizona solar ballot initiative launched by super PAC

Lesko, a Peoria Republican, doesn't like that initiative.

"It is totally unfair to lock in stone in our Arizona Constitution that a homeowner who happens to be able to afford to have rooftop solar will get this retail rate on net metering," Lesko said. "I really believe the initiative that was filed last Friday will increase the utility rates of most of the vast majority of ratepayers that do not have solar."

Lesko said she has met with legislative attorneys, utilities and other stakeholders to begin crafting language that could be used in a ballot referendum.

Arizona Public Service Co. officials said they support Lesko's effort.

Mayes said Wednesday she was frustrated that APS would support a referendum countering her solar initiative.

"It is an outrageous attempt to undermine the will of the voters in Arizona," she said. "This shows the state's largest utility is not only desperate but out of control."

To make the ballot measure possible, legislative leaders want to hollow out an existing measure and substitute the solar language.

A concurrent resolution can refer a measure to the ballot — a quicker way to get on the ballot than collecting the more than 225,000 voter signatures the citizen initiative requires. It takes the votes of only 16 senators and 31 representatives to send a measure to the ballot — and at a time when state budget negotiations are in full swing, there is the opportunity to entice a lot of lawmakers to support a late-arriving ballot measure.

There are several of these concurrent resolutions available, including measures sponsored by GOP Reps. Kate Brophy McGee, Bob Thorpe and Kelly Townsend. Brophy McGee and Thorpe both said they have been approached by a utility, which they declined to name. Townsend, R-Mesa, was not immediately available for comment.

Thorpe said he is concerned about the citizens initiative, which he said would allow a special interest — solar — to lock in a rate structure in the state Constitution.

RELATED: SRP data shows some solar customers save money with demand rates

RELATED: Rural utility's case could have big impact on rooftop solar fees

Brophy McGee, R-Phoenix, said all she has heard is there is interest in having the Legislature send a consumer-protection measure to the ballot. She is the sponsor of HCR 2039, which would have established a week last month as “Multiple Sclerosis Awareness Week.” That bill is dead, she said, and arguably could be used to carry a ballot measure.

APS and other utilities have been adding new fees to solar customers, contending they don't pay their fair share of maintaining the power grid. APS has a rate case beginning this summer that will include a new proposal to increase what customers with solar pay for their utility service.

The first initiative, if passed, would prevent the five, elected Arizona Corporation Commissioners from approving any such measure proposed by APS or other regulated utilities in the state.

“We understand Senator Lesko is working on some concepts and we support her efforts," APS spokeswoman Anna Haberlein said Wednesday.

Corporation Commission Chairman Doug Little said he is concerned the solar initiative would circumvent the elected utility regulators at the commission.

"Rate making is a very complex process," he said. "There are many moving parts. What this does is takes a big chunk of our tools and takes them away from us."