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 7, 2024 | News
By Corinne Murdock |
A coalition of grassroots advocacy groups is asking the Arizona Corporation Commission (ACC) to reject Environmental, Social, and Governance (ESG) efforts by energy companies, citing the impact to consumer well-being.
In a letter sent last week, representatives of Heritage Action for America, EZAZ, and Heartland Impact, led by the Arizona Free Enterprise Club (AFEC), expressed concern for the impact on utility rates and energy reliability that ESG implementation poses under plans submitted by APS, TEP, and UNS. The grassroots claimed that the three companies have deprioritized cost and efficiency in pursuit of voluntary climate goals.
“The Commission has a constitutional obligation to ensure just and reasonable rates and a statutory duty to ensure adequate provision of service,” stated the organizations. “That means ensuring reliable, affordable, and plentiful energy in the state, which should be the mission of this Commission. But these ideological environmental commitments do the opposite, and for that reason, they should be rejected.”
The grassroots leaders also expressed concern with the relationship between ESG and a greater political agenda to achieve “net zero” carbon emissions by 2050. In order to achieve net zero, companies would have to drastically reduce, if not eliminate totally, usage of coal, gas, and oil in exchange for renewable energies such as solar and wind.
In their letter, the organizations pointed out the intermittency — and therefore unreliability — of renewable energies. They referenced the power failures and high rates experienced by states and countries further along in their net zero journey, citing specifically California, Texas, and Germany.
The grassroots leaders maintained that ACC has the authority to prevent energy companies from quitting traditional energies and using ratepayer funds to subsidize renewables.
Utility companies previously rejected an increased reliance on renewable energies as recently as 2018, the letter noted, over concerns that such a move would greatly increase costs for ratepayers. They also cited 2021 ACC cost analysis, which found in part that a total transition to renewables could incur a $6 billion cost to ratepayers, averaging hundreds of dollars more a month, by 2050.
Last year, AFEC issued an analysis comparing the energy mandates of the 10 states with the highest electricity rates and 10 states with the lowest electricity rates. Per that report, nine of the 10 states with the highest rates had some form of mandates requiring renewable energy usage, while seven of the 10 states with the lowest rates had no mandates at all.
The report estimated that states with renewable energy mandates paid, on average, close to double what their peers in mandate-free states paid.
In a press release, AFEC President Scot Mussi blamed leftist politicians for the ESG push.
“Liberal activists and politicians in Arizona are seeking to harm our energy future, freedoms, and choices by forcing their radical and failed ESG policies on consumers,” said Mussi.
As AZ Free News reported last November, the executives overseeing those three companies have financial incentives to meet ESG criteria.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
by AZ Free Enterprise Club | Dec 22, 2023 | Opinion
By the Arizona Free Enterprise Club |
If someone wants to own an electric vehicle (EV), it is perfectly within their right to do so. That’s what it means to have freedom. But EV owners should be the ones to bear the burden of any costs associated with the necessary infrastructure improvements. And they should absolutely be responsible for paying for any excessive demand placed on the grid.
But that’s not the way the left sees it.
As part of its Green New Deal dream, the left has been pushing an agenda that significantly increases the amount of EVs on the road despite slowing demand from consumers and companies like Ford losing billions on them just this year. And Arizona utilities have fallen right in line, planning for 1 million EVs by 2030 while APS alone plans to have a 100% “carbon free” vehicle fleet as part of its commitment to go “Net Zero” by 2050.
So, how exactly was APS planning to do this?
>>> CONTINUE READING >>>
by Daniel Stefanski | Dec 11, 2023 | News
By Daniel Stefanski |
Last week, Commissioner Kevin Thompson announced that he and Chairman Jim O’Connor had “successfully offered amendments in the APS Transportation Electrification Implementation Plan and Budget (TEIP) agenda item.” The actions from the two commissioners took place in the panel’s meeting on December 5.
According to Thompson’s press release, he “authored an amendment that rejected the utility’s request to use up to $5M in ratepayer funds to develop and install EV charging infrastructure as part of the utility’s proposed ‘Take Charge AZ’ program.” O’Connor’s amendment ensured “that any EV rebates offered by the utility must be provided at shareholder expense, and not at the expense of ratepayers or ratepayer subsidization.”
“We can’t continue to financially burden the majority of ratepayers who don’t own an EV or who utilize charging stations,” said Commissioner Thompson. “Infrastructure for EV charging is an opportunity for the market and private enterprise to innovate and thrive, not utilities at the expense of their ratepayers.”
O’Connor added, “Our decision on Trico’s EV program in September of this year set the model we would like to see for all future EV charging; namely, no cost shift to ratepayers.”
The communication from Thompson’s Office shared that Commissioner Nick Myers also “provided an amendment that discontinued the Take Charge AZ program moving forward, allowing APS to complete the installation of charging stations currently underway.”
In his first year on the job, Thompson has taken several actions to improve efficiencies at the commission and to stand up for ratepayers. This summer, Thompson fulfilled a priority of his when he helped to secure increased funding for Corporation Commission staff without adding any more dollars to the state’s general fund. He said, “One of the significant consequences of being understaffed and under-resourced is that Arizona has consistently ranked in the bottom tier nationally in processing utility rate cases—it takes fifty percent longer to process a rate case in Arizona – resulting in delays to build new generation and replace critical infrastructure, driving up ratepayer costs and further destabilizing our regulatory and investment climate.”
Thompson also announced that he had “amended several provisions in a recent proposal for UniSource Energy’s (“UNS”) Demand Side Management (“DSM”) Energy Efficiency (“EE”) program.” The release explained that these amendments “eliminated or revised several proposals” and “reigned in ratepayer-funded incentives to contractors and sales consultants and focused on prioritizing programs that provided greater value to residential customers and target low-income customers.”
The Republican Commissioner also led a letter to Governor Katie Hobbs in October, asking the state’s chief executive to address the overwhelming price increases for electricity customers of the San Carlos Irrigation Project. The letter was co-signed by three of his colleagues – Lea Marquez Peterson, Myers, and O’Connor.
Commissioner Anna Tovar, the lone Democrat on the panel, did not add her name to the letter. Thompson told AZ Free News that he and his fellow Republicans “are willing to do whatever we can in our individual capacities to encourage our delegation and state government to put aside partisanship and get the federal government out of the business that private enterprise should be providing.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by AZ Free Enterprise Club | Dec 9, 2023 | Opinion
By the Arizona Free Enterprise Club |
A History of Harmful Mandates
Arizonans have faced repeated attempts over the last six years by various interest groups to impose costly Green New Deal energy mandates on utility ratepayers. In 2018, liberal billionaire Tom Steyer bankrolled a statewide ballot measure to require utilities to obtain 50% of their energy from renewable sources by 2030. Voters realized the danger of this California-style energy plan and rejected it by a 2 to 1 margin.
Immediately after the Steyer initiative failed at the ballot, the Arizona Corporation Commission began considering their own green energy mandate to completely ban fossil fuel generation in Arizona by 2050. The Commission’s plan was even more radical than the energy initiative, and this time the mandate was being pushed by our regulated utilities, not far left radicals. This caught most observers by surprise—the utilities were among the opponents of the Steyer initiative, and now they were cheerleading energy mandates.
Why the change of heart by our monopoly utility providers? The reason is simple—they knew that if the Commission adopted official policy requiring Green New Deal mandates, they would be guaranteed full cost recovery from their captive ratepayers. After fierce opposition from ratepayers and organizations like the Free Enterprise Club, this proposed mandate was rejected by the Commission in early 2022.
Unfortunately, this victory for ratepayers was short lived. Almost immediately after the Commission voted to reject costly energy mandates, the utilities announced that they would be implementing their clean energy agenda anyway, irrespective of what their captive ratepayers thought about it. This didn’t come as a total surprise, considering these utilities have gone all-in on Environmental, Social, and Governance (ESG) and the accompanying “Net Zero” commitments to ban fossil fuels in their SEC filings to shareholders, which our organization began advocating against at the Commission earlier this year.
We told the Commission that if the utilities are allowed to operate under ESG, every downstream policy decision would be shaped by it—ultimately resulting in massive ESG rate hikes for Arizona ratepayers. Based on the energy resource plans submitted by the utilities last month, it appears our predictions have been proven correct…
>>> CONTINUE READING >>>
