Mr. Cheuvront inquired about the true price per kilowatt-hour for solar application. Mr. Shultz said nuclear power is cheaper to build and operate then solar power. He stated in order to comply with the commission rules, APS would need approximately four square miles to operate, and that the up-front capital cost is ten times greater for a solar power generated plant then for a plant that generates nuclear or coal power. Mr. Cheuvront asked if the price of solar energy would decrease with time. Mr. Shultz stated that the industry has not developed at the rapid rate that was expected and therefore the price of solar power has not decreased and that no decreases are anticipated in the near future.
Conventional resources remain the least expensive form of energy.
Mr. Cheuvront asked whether or not there is an incentive for the industry to invest in alternative renewable power resources compared with the investment in resources that are more polluting. Mr. Shultz stated that the customer demand for renewable energy resources creates the incentive for industry to develop solar energy and other renewable resources. Chairman McGibbon recognized Shannon Wilhelsen, The City of Tucson, who opposes this bill but did not speak. Bill Meek, Arizona Utility Investors Associates, stated that his organization opposes this bill. He argued that this is a blatant abuse of regulatory authority to order a company to invest in close to a billion dollars in a fuel source that is neither competitive nor economic.