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APS tariffs drop with solar costs

But the decrease won't mean less money for solar and other renewables. APS will have a budget of $106 million in 2012, up from $96 million in 2011.

APS is taking $19 million that either was saved in 2011 or was earned through state production-tax credits at its new solar- power plants and rolling that money into the 2012 budget, said Eran Mahrer, APS' renewable-energy director.

"In a sense, it is all good news," Mahrer said. "We will meet our (renewable energy) targets and are on track to exceed them."

The Corporation Commission requires utilities to get 15 percent of their energy from renewable sources by 2025 and approves the tariff so they can pay for the higher cost of alternative energy when compared with traditional power sources like coal and natural gas.

The regulators spent most of Wednesday debating the details of the renewable-energy plan, trying to balance how much money is spent on the different types of solar power: panels on homes and panels on businesses and large power plants.

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