Radical Leftists and solar panel companies are freaking out over the upcoming Arizona Corporation Commission meeting on Wednesday, October 11 at 10:00am! But, based on the available public comments, they are the only ones who have contacted the Corporation Commission to express their desired actions regarding what’s on the agenda.
Currently, Arizona regulations force utility companies in the state to buy the extra solar power each solar customer puts into the grid. The Arizona Corporation Commission sets the rates that utility companies pay those customers.
On Wednesday, the Corporation Commission could vote to change the amount utility companies pay to match the break-even cost of the companies. This would reduce the vast majority of Arizonans’ energy bills.
In 2007, the Corporation Commission implemented a policy that required utility companies to pay retail price of solar power to their customers who put solar power back into the grid.
Those customers are still getting that rate today, even though the price of solar power has decreased tremendously over time. The customers are locked into that amazing deal for 20 years from the date of installation.
The 2007 policy ended in 2016 when the Corporation Commission decided utility companies should pay wholesale pricing to customers. However, there was a “great negotiation” between those who wanted the policy to remain in place—the Radical Left & solar power companies—and the Corporation Commission. The new policy implemented allowed for a maximum of only a 10% reduction in the price utility companies pay these customers every year. Since 2016, customers are locked into the rate they are paid for 10 years from the date of installation. Oh, and yes, those customers who installed solar panels between 2007-2016 are still locked in to get paid retail pricing for 20 years from the date of installation.
Because the maximum reduction of the rate utility companies pay to solar power customers who give to the grid is only 10% per year, there is still a huge discrepancy between the true wholesale solar power price and the rate utility companies are forced to pay these customers.
APS calculates their “Avoided Cost” at almost $0.05. This means APS would nearly break even on paying five cents per kWh to solar panel customers giving power to the grid. However, APS is forced to pay nearly $0.09 per kWh. For ten years, APS has to pay this rate to every solar panel customer who gives power to the grid, even though solar power is more than likely going to continue to fall.
The Arizona Corporation Commission sets the maximum profit rate of utility companies. APS’ is set at 8.7%. Being forced to pay customers more for their energy than the break-even cost causes utility companies to charge customers who do not have solar and are not giving to the grid a higher price for energy to meet profits.
If APS is allowed to truly match wholesale pricing for all solar panel customers giving to the grid and pay each one of them just under five cents per kWh, APS would be forced to cut the cost of energy for all of their customers, use the extra funds left over to reinvest, and/or expand its energy providing capabilities.
That’s why, if you really believe in clean energy or just want cheaper utility bills, it’s important to make your voice heard by speaking up, giving public comments, or submitting written public comments.
Right now, the only folks who have been doing so are those who own solar panels and don’t want their pay to decrease or solar panel companies who may face tougher economic hardship. But all customers deserve a say in our state’s energy prices both now—and in the future.
Jeff Caldwell currently helps with operations at EZAZ.org. He is also a Precinct Captain, State Committeeman, and Precinct Committeeman in Legislative District 2. Jeff is a huge baseball fan who enjoys camping and exploring new, tasty restaurants! You can follow him on X here.
For years, the Arizona Corporation Commission (ACC) has been the stomping ground for the left to push its Green New Deal Agenda. In fact, it was just over two years ago when the commission quietly released its plan to impose California-style energy mandates in our state. Their goal was to ban fossil fuels and require most electricity companies to provide “clean” energy by 2050. Thankfully, the commission voted down these energy mandates in January 2022. But that hasn’t stopped the left from trying to find other ways to exploit the ACC.
One of their latest efforts has centered on Tucson, and as part of its Green New Deal agenda, Tucson Electric Power (TEP) asked the ACC for rate hikes to subsidize electric vehicles. But TEP didn’t get everything it wanted…
On Tuesday, the Arizona Corporation Commission (ACC) announced that it “joined a multi-state settlement with Robinhood Financial LLC, which will pay up to $10.2 million in penalties for operational failures that harmed main street investors.”
According to the ACC, “the investigation was sparked by Robinhood platform outages in March 2020, a time when hundreds of thousands of investors were relying on the Robinhood app to make trades. In addition, prior to March 2021, there were deficiencies at Robinhood in its review and approval process for options and margin accounts, weaknesses in the firm’s monitoring and reporting tools, and insufficient customer service and escalation protocols that in some cases left Robinhood users unable to process trades even as the value of certain stocks was dropping.”
The investigation was led by “state securities regulators in Alabama, Colorado, California, Delaware, New Jersey, South Dakota, and Texas coordinated through the North American Securities Administrators Association (NASAA) regarding Robinhood’s operational failures with respect to the retail market.”
NASAA President Andrew Hartnett issued the following statement in conjunction with the announcement: “Today’s multistate agreement represents states at their best – working together for the benefit of Main Street investors. Robinhood repeatedly failed to serve its clients, but this settlement makes clear that Robinhood must take its customer care obligations seriously and correct these deficiencies.”
ACC Chairman Jim O’Connor also added, “This agreement is part of an ongoing effort by state securities regulators to protect investors and to make sure they are treated fairly by their financial services companies.”
The ACC’s news release made clear that “the Commission found no evidence of willful or fraudulent conduct by Robinhood, and that Robinhood fully cooperated with the investigation.” Also, “Robinhood neither admitted nor denied the findings as set out in the states’ orders.”
One of the findings of fact in the order before the ACC was that “Robinhood acquired approximately 89,136 new Arizona customers from October 1, 2019, to March 31, 2020, for a total customer count of approximately 290,356 as of March 31, 2020. From October 1, 2019, to March 31, 2020, Robinhood approved approximately 13,713 Arizona customers for option trading and approximately 1,934 Arizona customers for margin trading.”
The ACC’s release highlighted these violations as included in the order:
Negligent dissemination of inaccurate information to customers, including regarding margin and risk associated with multi-leg option spreads.
Failure to have a reasonably designed customer identification program.
Failure to supervise technology critical to providing customers with core broker-dealer services.
Failure to have a reasonably designed system for dealing with customer inquiries.
Failure to exercise due diligence before approving certain option accounts.
Failure to report all customer complaints to FINRA and state securities regulators, as may be required.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Arizona’s Democrat Governor is moving ahead with her plans to talk to the state’s utility companies to address the heatwave. This week, Governor Katie Hobbs announced that she had “scheduled a roundtable meeting with utility company leadership for August 18.”
Hobbs plans to use the event to “highlight her administration’s efforts to protect Arizonans during the historic heat wave and discuss actions utilities can take to address future challenges.”
Extreme heat can be devastating when not properly addressed. That’s why I’m taking action to provide relief through additional cooling center resources and collaborating with utilities, local organizations, cities, and county officials. Together, we will keep Arizonans safe…
In a statement, Hobbs said, “Extreme heat can be devastating when not properly addressed. That’s why I’m taking action to provide relief through additional resources and collaborating with utilities, local organizations, cities, and county officials. Together, we will keep Arizonans safe through this historic heat wave and ensure our state is prepared for future emergencies.”The governor also revealed that her Office would “provide $50,000 to Valley Interfaith Network for staffing, water, and expanded cooling center service throughout Arizona.”
Hobbs’ announcement followed a controversial letter sent to Arizona utility companies at the end of last month, in which she asked for “written plans outlining how they will protect Arizonans during this devastating heat wave.”
The governor directed the utility companies to focus their plans on the areas of Disconnects, Grid Security, Emergency Response, Customers in Arrears, and Community Service.
Today, I sent a letter to Arizona's utility companies asking for written plans outlining how they will protect Arizonans during this devastating heat wave, and inviting them to discuss how we can work together to better prepare for the future.
You can read my letter HERE:…
— Governor Katie Hobbs (@GovernorHobbs) July 21, 2023
Republicans and Democrats largely broke to partisan corners with their responses to the governor’s efforts on this front. Phoenix Councilwoman Laura Pastor tweeted, “Phoenix has been experiencing a historically hot summer – if a statewide or even citywide power outage were to happen, lives would be lost. We need to know what to do during that situation and how we can help our residents. Governor Hobbs is asking the right questions.”
Phoenix has been experiencing a historically hot summer — if a statewide or even citywide power outage were to happen, lives would be lost.
We need to know what to do during that situation and how we can help our residents.
— Councilwoman Laura Pastor (@PHXDistrict4) July 22, 2023
The Arizona Democratic Party also weighed in, posting, “As Arizona faces a historically hot summer, Democrats are delivering real relief! Thank you Governor Hobbs.”
— Arizona Democratic Party (@azdemparty) July 21, 2023
Republican Representative Matthew Gress took an opposing view to the governor’s announcement, writing, “Governor, you *do* know the utilities already submitted those plans and briefed the Commission…back in April…right? And you do realize the excessive heat warning has been in effect for nearly a month? We’ve hit new records for several weeks now? Every time, our utilities performed flawlessly. But really glad you weighed in weeks after the heat wave started! You’re really on top of things.”
Governor, you *do* know the utilities already submitted those plans and briefed the Commission…back in April…right? (SEE: https://t.co/6YTrQGZrO2)
And you do realize the excessive heat warning has been in effect for nearly a month? We’ve hit new records for several weeks now?… https://t.co/RXvtGQ9ilZ
Representative Joseph Chaplik added, “Another example of an unqualified Hobbs Governor/CEO of AZ. As Gov, you should have already known all this from communicating with APS and SRP over the last 9 months with preparation for the summer. We all know we get hot in the desert during July. No need to publicize your late demands. You should be thanking them for being prepared.”
Another example of an unqualified Hobbs Governor/CEO of AZ. As Gov, you should have already known all this from communicating with APS and SRP over the last 9 months with preparation for the summer. We all know we get hot in the desert during July. No need to publicize your… https://t.co/zbYQTW1eWi
— Rep. Joseph Chaplik 🇺🇸 (@JosephChaplik) July 22, 2023
Long-time Arizona journalist Howie Fischer pointed out that the governor’s request to state utility companies was “not within her constitutional duties (but was) the role of the Arizona Corporation Commission.”
It's not within her constitutional duties. That's the role of the @CorpCommAZ. But that isn't stopping @GovernorHobbs from demanding that utilities give her information about their hot weather plans. https://t.co/bYNeVohBpg
— Capitol Media Services 📢 Telling it like it is (@azcapmedia) July 22, 2023
Senate President Pro Tempore T.J. Shope agreed with Fischer, tweeting, “Correct, it’s not within Governor Hobbs constitutional duties. Perhaps her interns oughta watch one of the Senate Committee on Natural Resources, Energy and Water Committee hearings that Senator Sine Kerr chairs so she can learn about energy plans and how the utilities plan for summer.”
Correct, it’s not within @GovernorHobbs constitutional duties. Perhaps her interns oughta watch one of the Senate Committee on Natural Resources, Energy and Water Committee hearings that Sen. @SineKerr chairs so she can learn about energy plans and how the utilities plan for… https://t.co/aftlZe0kk6
Arizona Corporation Commissioner Kevin Thompson announced the successful inclusion of top-line priorities in the recently signed budget for the state – negotiated between Republican legislators and Democrat Governor Katie Hobbs. While Hobbs apparently failed to incorporate some main requests for same-party officials in the Attorney General’s and Secretary of State’s offices, many Republicans around the state, including Thompson, were more than pleased with their budget advances.
In an Instagram post, Thompson revealed the following budget gains for the Corporation Commission:
“$6M in new dedicated funds to increase staffing levels and increase employee salaries by 10%.
Another $7M in one-time funding to replace the Commission’s outdated business filing computer system, which will help improve the overall customer experience for Arizona’s 1.3M active LLC’s and another 578,000 active corporations registered in our state.”
Thompson also ensured that these wins were fiscally responsible, adding that the funding was secured “using existing Commission funding streams, incurring no additional expense for the taxpayer.”
The freshman commissioner noted the difficulty of this accomplishment, sharing that “many scoffed at the idea of our ambitious supplemental budget request” due to the fact that “the Commission hadn’t received new dollars from the legislature in years.”
This action was a priority of Thompson’s – and his fellow freshman Commissioner, Nick Myers – since they were sworn into office in January. In his inauguration speech, Thompson promised to pursue increased funding for Corporation Commission staff, saying, “With that, I want to immediately work to bring our staffing levels back to where they should be, and secure the livable wages our hardworking public servants deserve. We can’t continue to do more to service the public with less and expect our employees to have quality of life in this economy. I will work with our Executive Director and legislature to seek an increase in our annual budget and improve salaries for our employees. We have to keep pace with other state agency employee pay.”
Not only did this funding not add any more dollars to the state’s general fund, it will certainly help Arizona ratepayers and those who interact with the Corporation Commission – as Thompson highlighted in his recent social media post: “One of the significant consequence 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 praised Myers, who ran as a team with him in 2022, for his co-labors in securing new funding for the Commission. Thompson’s and Myers’ November victories kept Sandra Kennedy and Lauren Kuby from those seats, which would have given the Democrats control of the Commission. According to an official Corporation Commission release, House and Senate Appropriations Chairs David Livingston and John Kavanagh were applauded for their leadership roles in making the funding a reality during the legislative process.
Commissioner Thompson has quickly made himself into a reliable conservative voice and figure for Arizona Republicans, which hasn’t been too hard due to the scarcity of statewide Republican officials. Still, Thompson’s record at the Mesa City Council and (now) at the Arizona Corporation Commission could lead to a significant promotion in the 2026 state contests – especially as he works with his Republican colleagues to stop Democrats from transforming Arizona’s energy policies.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
