by Daniel Stefanski | Nov 18, 2024 | News
By Daniel Stefanski |
Arizona’s Corporation Commission will be completely governed by Republicans after the party experienced a clean sweep of three contests during November’s General Election.
Republicans emerged victorious over their Democrat opponents for three Corporation Commissioner spots on the ballot. Those individuals were newcomers Rachel Walden and Rene Lopez, and incumbent Lea Márquez Peterson, finishing in that order. Márquez Peterson received 100,000 more votes than the fourth-place candidate.
After winning the election, Walden released a statement, saying, “It is a great honor to be elected to the Arizona Corporation Commission. Thank you. To all of the volunteers who knocked on doors, made calls on my behalf, and put up signs. I am so grateful for all of the grassroots efforts. But I am especially grateful for the hundreds of thousands of votes. Thank you for trusting me to serve on the Arizona Corporation Commission. I look forward to serving you to make sure our utilities are affordable and reliable.”
Lopez wrote, “Thank you to everyone for your vote and to: Jessica, Brianna, Andrew & family for your sacrifices in supporting me on this journey. All the PCs, LDs, clubs, Rep Women’s clubs for the opportunities, your work and support. Rachel and Lea for the year long grind. We did it!”
Márquez Peterson said, “Thank you to every campaign volunteer and supporter across the state. I’m honored to continue to serve at the Arizona Corporation Commission for a second term!”
In an exclusive statement to AZ Free News about the coup for Republicans, current Commissioner Kevin Thompson, said, “Despite liberal activist groups spending millions of dollars this cycle to defeat Republican Commission candidates, Arizona voters demonstrated they want Commissioners who will ignore activist politics and prioritize reliability and affordability for ratepayers.”
Thompson added, “The current Commission has focused on the long term reliability of our grid and doing what is best for Arizona, not the activists who want to turn us into another California at the expense of ratepayers. I’m confident the incoming Commission will build upon that work and make sure Arizona remains successful and affordable for the foreseeable future.”
Despite Democrats winning the major statewide offices in 2022 (Governor, Attorney General, and Secretary of State), Republican majority control of this Commission has been a bright spot for those attempting to keep leftwing policies from taking root and blossoming in Arizona. According to its website, the ACC works to ensure “safe, reliable, and affordable utility services,” and Republicans have been instrumental in directing policies to do just that for the state. Without a single Democrat on the panel going forward, starting in January, Republicans will have even more of an opportunity to enact their vision for Arizona utilities and other areas within their jurisdiction on the Commission.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Nov 11, 2024 | News
By Matthew Holloway |
In a post-Election Day vote on Nov. 6th, the Arizona Corporation Commission (ACC) voted unanimously to approve a Consent Agreement between Southwest Gas Corporation (SWG) and the Arizona Corporation Commission Office of Pipeline Safety (AZOPS). The Commission slammed SWG with a $2,000,000 civil penalty stemming from two incidents in 2021 in Chandler and Scottsdale caused by degradation in pipelines, leaks, and explosions. The incident in Chandler saw an explosion that injured four people.
As reported by 12News, the explosion on August 26, 2021 that drew the attention of the ACC occurred near Ray and Rural Roads at a Chandler business and injured four people. The blast caused a complete structural failure of the building’s roof which subsequently collapsed and caused the evacuation of nearby homes. The explosion caused damage in excess of $5 million the outlet reported, citing public records.
In a press release, the ACC explained that it voted on Wednesday to impose a Consent Agreement between Southwest Gas Corporation (SWG) and the ACC, which proposes a resolution to the issues related to the Scottsdale and Chandler incidents.
The ACC explained its findings stating:
“AZOPS investigators concluded that pipe purchased by Southwest Gas degraded in high heat areas, leading to leaks, and possible explosions. The investigators further concluded that Southwest Gas failed to properly map where this type of pipe, referred to as Driscopipe polyethylene (PE) M7000 and M8000, was located and needed to increase leak patrols. The mapping errors lead to an incorrect understanding of where the potentially failing piping is located. Maintaining accurate records is mandated by law.
Southwest Gas accepted responsibility and agreed to pay $2,000,000 to the Commission as a civil penalty. As part of the agreement, Southwest Gas also must plan to replace or abandon all services with no active meter sets or stubs identified underground that contains the defective piping material. Southwest Gas estimates there are more than 10,000 miles of M7000 and M8000 pipe installed throughout Arizona.”
Commissioner Kevin Thompson added an amendment that was approved as well that the Consent Agreement is not the final word on the matter “making it clear that enactment of the settlement does not constitute an approval or authorization by the Commission for recovering the costs of pipe replacement or costs associated with fulfilling the terms of the settlement in any upcoming rate case,” according to the release.
He said in a statement, “This matter has been before the Commission long enough and the approval of this settlement is a big step in the direction of maintaining public safety and holding the utility accountable.” He added, “I don’t believe customers should bear the entire responsibility for the mistakes of the manufacturer and their defective products, and I wish the utility would have pursued this path more aggressively when they had the chance.”
Speaking with Fox10 Phoenix, Tom Ryan, trial attorney for the explosion victims, Platinum Printing and the Ryan brothers, said, “It was a shock—a complete devastation. Metal was bent, doors were sent flying 200 feet. It was just an incredible, shocking sight. And I’m still amazed today—that as badly as they were burned—that he lived to tell about it.”
Southwest Gas has not sought legal action against the pipe manufacturer for defective product liability as of this report.
Fox10 reported that the new piping mandated under the Consent Agreement could impact thousands of businesses and homes across the Phoenix Metro area and will total in nearly 1,000 miles of replacement piping.
In a statement issued to AZFamily, a Southwest Gas spokesman wrote, “Southwest Gas worked closely with the Arizona Corporation Commission’s Office of Pipeline Safety during its investigation of the incidents in Scottsdale and Chandler to identify root causes and opportunities to enhance the safety, service, and reliability of our infrastructure in the State of Arizona. The Consent Agreement is the result of these efforts and ensures the insights gained from this process lead to positive change reflective of Southwest Gas’ continued commitment to safely deliver natural gas service for our customers and the communities we serve.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Sep 12, 2024 | News
By Matthew Holloway |
During its meeting on September 5th, the Arizona Corporation Commission (ACC), led by Republican Commissioner Nick Myers, voted unanimously to approve a Certificate of Environmental Compatibility (CEC) allowing the Midtown Reliability Project of the Tucson Electric Power (TEP) company to move forward.
The project is a comprehensive upgrade to the now-overloaded 46 kV high-voltage transmission lines that run through midtown Tucson to a “more flexible, higher voltage” 138 kV monopole line above ground, according to a press release from the Commission.
A major controversy unfolded with some in Tucson calling upon the ACC to select a partially underground routing that would increase the cost of the project by millions of dollars and meet the expense through an end-user fee.
Commissioner Myers commented after the vote, “I understand why some Tucson residents would want this project constructed below ground. However, constructing the project below ground is not needed for safety, reliability or other utility operational reasons; therefore, it is not acceptable for all TEP customers to shoulder the $67 million cost for undergrounding the project.”
He added, “I am pleased the Commission approved this important grid-reliability project, while at the same time protecting TEP customers from unnecessary undergrounding expenses.”
In a corresponding press release, TEP explained, “The ACC voted unanimously today to authorize above-ground construction along TEP’s preferred route for the project, which primarily follows West Grant Road, North Park Avenue, Euclid Avenue and East 36th Street to link two TEP substations to the planned Vine Substation north of the University of Arizona campus. The ACC also authorized construction along an alternative route. An interactive map of the approved corridors can be viewed online.”
The utility added a timeframe saying, “With growing energy demands nearly reaching the capacity of existing, lower-voltage facilities, TEP will work to complete the transmission line and substation by the summer of 2027 to maintain service reliability.”
Myers’ fellow Republican, ACC Chairman Jim O’Connor, told KOLD, “A big kudo to the parties for finding a solution that will enable this project to move forward. This transmission project will further enhance reliability and modernize a critical portion of our electric grid in Tucson.”
The local outlet noted that a sticking point for the project has been pushback from the midtown community and many advocating for subterranean lines. In 2023, KOLD’s Jack Cooper wrote in a post to X that the opposition to the above-ground routing were “worried about property values and want the lines buried.” However, as the ACC noted in its release, “The Commission unanimously decided to protect ratepayers from that financial impact.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Aug 7, 2024 | News
By Matthew Holloway |
Arizona Corporation Commissioner Nick Myers hammered home the necessity of reliability and affordability to Arizona energy providers including Arizona Public Service Company (APS), Tucson Electric Power Company (TEP), UNS Electric, and Arizona Electric Power Cooperative during a workshop for the development of an Integrated Resource Plan or ‘IRP.’
The IRP is required by the commission every three years.
According to the Commission, the providers represented at the workshop gave presentations that highlighted the projected load growth in the state and analyzed their resource portfolios and their estimated revenue requirements.
Both APS and TEP discussed plans to decommission their coal-fired power plants, APS’ at Four corners in 2031 and TEP at various locations by 2032. Both of the utilities told the commission they intend to replace the coal-fired plants with natural gas generation “that can ramp up quickly during the day when customers need electricity the most and make use of existing infrastructure to maintain customer affordability as they transition to renewable energy, battery storage and potentially new technology.”
Myers reportedly pressed the utilities represented on whether they had completed their analysis based on the lowest cost and most technologically neutral means without imposing their politically-driven mandates to reduce emissions on the state as required by Commission rules. He pointedly questioned if their differing goals “may have resulted in the selection of a more costly or less reliable resource portfolio,” per the commission.
Myers said, “IRP planning is a complicated process that involves the analysis of various scenarios, multiple iterations, and complex projections. It is critical that the Commission understands what a utility’s plan is going forward and addresses any possible discrepancies or inconsistencies so that Arizonans can feel comfortable that their air conditioning will remain on and at an affordable rate.”
The commission reported that it is now reviewing the IRPs from the utilities and should bring a memorandum and proposal for review by the end of the month. In closing, Myers told the workshop, “Reliability and affordability will continue to be my highest priorities. We absolutely cannot afford to have blackout and brownouts in Arizona.”
In a July press release reported by KTAR, Chairman Jim O’Connor expressed similar concerns saying, “Hotter temperatures and monsoon winds put even more pressure on our electric grid, as we demand increasing amounts of power each year from our utilities. Thankfully, Arizona has top notch utilities with dedicated employees that coordinate to keep our power reliable across our state.”
O’Connor and the utilities at that time called upon Arizonans to reduce electrical usage by adjusting home thermostats and pushing heavy appliance usage and EV charging later into the evening.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Corinne Murdock | Feb 9, 2024 | News
By Corinne Murdock |
A vote by the Arizona Corporation Commission (ACC) earlier this week moved to limit energy companies’ push to meet Environmental, Social, Governance (ESG) goals.
The ACC voted 4-1 on Tuesday to draft rules to repeal existing rules and mandates for renewable energy as well as electric and gas energy efficiency: the Renewable Energy Standard and Tariff (REST) Rules and the Energy Efficiency Standards (EE), also known as the Demand Side Management (DSM). Per the commission, the rules and mandates for REST and EE/DSM resulted in incentives for renewable energy projects and services, since utilities were required to file proposals describing REST compliance.
Commissioner Ana Tovar was the sole “no” vote on the motions. The standards behind EE/DSM expired in 2020, but previous commissions didn’t repeal the rule.
The commission noted in Wednesday and Thursday press releases that the rules, tracing back to 2006 for REST and 2010 for EE/DSM, have cost customers nearly $3.4 billion through corresponding surcharges. REST surcharges have cost ratepayers nearly $2.3 billion, while EE/DSM surcharges cost nearly $1.1 billion.
Commissioner Nick Myers said in Wednesday’s press release that the rules and mandates were unnecessary and would result in a drastic cost increase to consumers.
“I believe it is time for the Commission to consider repealing these rules and mandates that appear to unnecessarily drive-up costs,” said Myers. “Utilities should select the most cost-effective energy mix to provide reliable and affordable service, without being constrained by government-imposed mandates that make it more expensive for their customers.”
In Thursday’s press release, Chairman Jim O’Connor — who filed the motion to repeal REST — said that the commissioners from nearly 20 years ago were “well-intentioned” in their vision for reducing the state’s carbon footprint through the REST rules, but that no cost controls were ever implemented, at the detriment of ratepayers.
“In 2006 when the REST rules supplanted the EPS rule, concerns by the dissenting Commissioner cited the lack of cost control measure that would negatively impact ratepayers, and the then-Chairman Hatch-Miller intended that the Commission review annually whether it was in the best interest of the ratepayers. Those reviews never occurred and costs were never considered,” said O’Connor.
O’Connor further remarked that contracts in pursuit of environmental mandates ultimately burdened the ratepayers.
“We began the steps needed to repeal a rule that has cost ratepayers billions of dollars in out of market priced contracts,” said O’Connor. “Mandates distort market signals and are not protective of ratepayers.”
Commissioner Kevin Thompson — who filed the motion to repeal EE/DSM — stated in the press release that the repeal marked a victory for ratepayers, and the end of “feel-good programs” that lack affordability and reliability.
“Arizona utilities have collected over a billion dollars in ratepayer surcharges for efficiency initiatives that have done little to avoid the need for new generation and have benefitted a select few,” said Thompson. “Energy efficiency programs are routinely pushed by vocal special interest groups where the economic benefits favor a small group of customers, and the large majority of ratepayers foot the bill.”
Prior to the ACC acting on the draft rules, the commission will open up multiple public comment opportunities. The draft rules and intake for public comment will be located on the following ACC dockets: gas utility energy efficiency, electric utility energy efficiency, and renewable energy.
The entire rulemaking process will take over a year, according to commission staff. The REST and EE/DSM repeal are part of a greater, five-year review of existing ACC rule packages.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
