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The Benefits and Costs of Solar Distributed Generation for Arizona Public Service, re: Docket no. E-00000J-14-0023

This testimony responds to the Commission's request that parties file proposals on how to value distributed generation resources in Arizona.There is a developing consensus in the utility industry on the best practices for designing benefit-cost analyses of net metering and distributed resources, a consensus which draws upon the similar analyses which have become standard practice for other types of demand-side resources. These analyses assess the benefits and costs of these resources from multiple perspectives, including those of the principal stakeholders in DG development, including (1) participating customer-generators, (2) other non-participating ratepayers, and (3) the utility system and society as a whole. The goal of the regulator should be to balance the interests of all of these stakeholders, who collectively constitute the public interest in developing DG technologies.