By Jon Johnson
SAFFORD — The Safford City Council is set to vote on proposed utility rate changes following the completion of a Utility and Service Rate Study, which recommends increases for most utilities but a reduction in electricity rates. The council will discuss the “Intent to Change Rates” at its meeting on Monday, Aug. 11, at the Safford City-Graham County Library, located at 808 S. 7th Ave. A public hearing is scheduled for Oct. 13, with a final vote on Oct. 27, both at 6 p.m.
The five-year rate study proposes increases for water, wastewater, sanitation, and natural gas services. Natural gas faces the steepest hike, with the residential service availability charge potentially rising from $15 to $27.43 per month by 2029, and delivery charges per MCF increasing from $5.10 to $9.33. Commercial natural gas rates will see similar percentage increases. In contrast, electricity rates are slated to decrease from just over 7 cents per kWh to under 5 cents per kWh by 2029.
End to solar net metering
A significant change in the proposal is the elimination of net metering for solar customers, aligning Safford with the Arizona Corporation Commission and Graham County Electric Cooperative, which began phasing out net metering nearly a decade ago. Currently, solar customers receive a one-for-one credit for excess power generated and fed into the grid, effectively using the utility as a storage system. Under the new plan, solar producers would receive only one-quarter credit for excess generation—1 kWh credit for every 4 kWh supplied—along with a new $6 monthly administration fee.
City Manager John Cassella told the Gila Herald that, if approved, the city would buy out existing credits for solar customers before transitioning to the new system. One solar customer reported having accumulated $2,600 in credits. The proposed credit reduction would lower residential solar credits from nearly 13 cents per kWh to just under 3 cents, small commercial from about 15 cents to just over 3 cents, and large commercial from 11.5 cents to about 10 cents per kWh.
The move follows the Arizona Corporation Commission’s 2016 decision to replace net metering with a de-escalating export rate for utilities like Graham County Electric Cooperative, which dropped from over 7 cents per kWh in 2018 to 4.3 cents by 2023. Existing solar customers under that system were grandfathered to continue to use net metering for 20 years.
Residents can review the full rate study results and recommendations online here. The public is encouraged to attend the Oct. 13 hearing to voice opinions on the proposed changes before the council’s final vote on Oct. 27.
