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Arizona Chairman Proposes Program For Utility To Provide Incentives For Customer-Owned Storage
January 10,2020 Arizona Corporation Commission Chairman Robert Burns has proposed the broad outlines of a program under which Tucson Electric Power would provide an incentive for the installation of individual customer energy storage, either in conjunction with the installation of new rooftop solar, installation paired with existing rooftop solar, or standalone (not associated with rooftop solar or any other distributed energy source) energy storage. "One method that I believe could work to provide such an incentive is for TEP to establish an on-bill, no interest loan program for residential customers to install energy storage systems on their premises," Burns wrote in a memo in TEP's rate case "With the above proposal, I think we could all agree that there must be some benefit to TEP and its entire customer base. In order for TEP to have some benefit from the above distributed energy storage installation (that is owned by the customer, not TEP), TEP would need to have some control over the operation of the storage that was funded by the interest-free loan," Burns said Burns envisioned development of a tariff that would: • Establish the parameters of where, when and how TEP would have control of the inverters associated with the energy storage, and • Put the customer on a special rate plan that would allow that customer to benefit (lower energy bill and reliability/resilience during a TEP outage) from energy storage while at the same time ensuring that TEP could use (e.g., energy, voltage control, frequency control) that storage when it was needed by the TEP system. Use by TEP should include limits such that the customer's energy storage would not be completely depleted, would not be used at a time that was critical to the customer, etc. "Additionally, and importantly, my proposal is just one method that 1 believe can incentivize the installation of distributed energy storage. I am sure there are parties to this rate case that can modify/tweak this proposal to make it better. Perhaps there are parties to this case that may have a completely different proposal that would accomplish my same goal. I am open (and hope other Commissioners are also) to other proposals that would incentivize the installation of distributed energy storage that benefits both the utility and its customers," Burns said
Docket E-01933A-19-0028
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