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 Daniel Stefanski | Sep 22, 2024 | Economy, News
By Daniel Stefanski |
Many Arizona energy consumers are about to see some savings in their bills in time for the holidays.
This month, the Southwest Gas Corporation sent a notice to the Arizona Corporation Commission about a rate decrease to consumers effective at the start of October.
The statement from Doran A. Miller, a Regulator Manager, said, “Pursuant to Decision Nos 74595 and 79038, Southwest Gas is providing notice that the Gas Cost Balancing Account rate will decrease from $0.30911 per therm to $0.00 per therm effective October 1, 2024. This results in a decrease of approximately $7 per month for the average single-family residential customer.”
In an exclusive comment to AZ Free News, Republican Commissioner Kevin Thompson responded to the notice from Southwest Gas, saying, “Any significant savings for the ratepayer should be welcomed, particularly in this economy. The cost of natural gas fuel is required to be passed along to ratepayers as a monthly surcharge that the Commission regularly reviews to make sure customers are paying the actual cost. This helps ensure utilities don’t over collect or earn a profit on this necessary resource.”
Thompson added, “As volatility in domestic and international markets have subsided, and the cost of natural gas dramatically decreases, most Southwest Gas customers will see a noticeable decrease in their monthly gas bill beginning in October.”
Earlier this year, the Corporation Commission shared a report from WalletHub, which showed that Arizona had the second-lowest energy cost out of the 50 states in the North American union with a $400 bill.
According to the Corporation Commission, there were a handful of factors separating Arizona from other states:
- “Diverse generation sources – Arizona relies on a mix of generation sources, from nuclear, natural gas, hydropower, renewables, and battery storage.
- “Self-Sufficiency – Arizona is not dependent on imported power. We tap into the market if needed, but our utilities’ focus is providing Integrated Resource Plans to guarantee future readiness. The Commission diligently oversees upgrades and construction.
- “Proactive maintenance to ensure reliability – The Commission prioritizes daily maintenance and line work leading up to the summer to ensure the grid is ready for the extreme heat and high load.”
Republican Commissioner Lea Marquez Peterson reacted to the report from WalletHub, writing, “The data released in the report reflects the priorities of our Commission – reliable energy at the most affordable rates. I’m proud of the service and affordable rates we work hard to provide to ratepayers throughout the state.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Kevin Thompson | Sep 16, 2024 | Opinion
By Kevin Thompson |
The Corporation Commission recently unanimously voted to support Tucson Electric Power’s (“TEP”) Midtown Reliability Project (“Midtown”). The Midtown project is a much-needed improvement for the City of Tucson’s antiquated and overloaded 46kV sub-transmission system. The equipment will be upgraded to a 138kV system in the area adjacent to the University of Arizona and Banner University Medical Center. The project would also replace a portion of the 4kV distribution lines located in the Midtown neighborhoods. These systems are over 50 years old and no longer meet the needs and demands of the area as the system has become increasingly overstrained and unstable.
Fragile wooden poles that are susceptible to damage will be replaced with larger capacity metal poles and more powerful transmission lines. Up to eight 46kV existing substations and 19 miles of current 46kV line will be removed, resulting in a reduced number of substations and overhead power lines in Midtown Tucson. The upgrades will benefit all of TEP’s customers; the transmission lines will improve system redundancy and grid resiliency, allowing power to bypass lines and areas that might be down or overloaded. In supporting the proposal, the Commission rejected calls by the City of Tucson leadership and neighborhood groups who demanded the new lines be “undergrounded” as opposed to the standard more affordable above ground installation.
Tucson voters overwhelmingly rejected Prop 412 in March 2023, which was supported by Tucson’s Mayor and TEP. The proposition would have extended TEP’s franchise agreement with the city, and in return would have established additional fees to fund the undergrounding of the Midtown project and establish a “Climate Action Fund.” The defeat left the franchise agreement renewal in limbo, but it also required TEP to move forward with an alternative plan to complete the needed and already delayed improvement. City leaders continued to call for the undergrounding of equipment, a beautification effort where costs would have been picked up by all TEP ratepayers, not just the customers who will benefit from the Midtown project improvements.
During the Commission proceedings, some claimed the incremental cost difference between underground and above ground lines was negligible, and that the historic nature of the area and neighborhoods called for a greater standard of beautification. There are two important responses to those viewpoints. First, the region already has above ground power lines. Any sort of undergrounding would be a luxury the area currently doesn’t enjoy. And as previously noted, the above ground upgrades will actually reduce the total number of transmission lines and substations. Second, there is a huge price difference. Project estimates for the cost difference between underground and above ground are $64 million dollars. An additional $64 million that would have to be funded by all TEP ratepayers, the far majority of whom live nowhere near Midtown.
Last year, the Commission adopted a transmission line policy statement that utilities under the Commission’s jurisdiction should avoid incurring higher costs from underground installation of transmission lines unless it was necessary for reliability or safety purposes. Undergrounding lines for purposes such as stakeholder or community preferences are not valid reasons on their own. And concerned third parties such as cities or neighborhood groups can still seek to cover the cost difference to underground through other means such as forming an improvement district.
With most rate design, there’s a degree of “subsidization” that exists, wherein equipment upgrades or power line installations are spread out across an entire ratepayer base for that utility’s customers. However, when a project or proposal clearly only benefits a small subset of customers, it is our duty as a Commission to look out for all ratepayers. We must ensure the desires of a few do not adversely impact the pocketbooks of the many.
It’s not uncommon for the Commission to review proposals that subscribe to what some refer to as “luxury beliefs.” Ideas and opinions that benefit a group of people who are better off while often inflicting greater costs or more harm on less fortunate classes. We see this most frequently amongst climatism promoters, who advocate to end the use of hydrocarbons and rapidly transform our electric grid, with no concerns for the price tag to ratepayers. It’s akin to advocating for ratepayers to subsidize electric vehicle charging stations that benefit a small set of utility customers, while the far majority of other customers either do not want an electric vehicle or can’t afford one.
During the hearing, proponents of line undergrounding attempted to rationalize the cost increase due to the unique history and beauty of the area. They argued the monthly cost to underground the Midtown project is negligible when spread out across the entire customer base. While I am sympathetic to the preferences of property owners, how can I as an elected official possibly rationalize to ratepayers in South Tucson that their neighborhood isn’t worthy of receiving the same special treatment?
With this vote, the Commission honored the will of Tucson voters and protected the pocketbooks of TEP ratepayers. We also took big steps to improve the long-term reliability and durability for all TEP customers in the Tucson area.
Kevin Thompson was elected as a member of the Arizona Corporation Commission in 2022. He previously served as a member of the Mesa City Council for eight years, representing the fastest-growing area of the city.
by Daniel Stefanski | Aug 12, 2024 | News
By Daniel Stefanski |
Arizonans are using a lot of energy throughout this hot summer in the Valley of the Sun.
Last week, the Arizona Corporation Commission issued a press release to alert readers that Arizona electric utilities had “set new records for peak energy demand.”
According to the communication from the state government agency, the record for peak energy was reached on Sunday, August 4, between 5-6pm, when the high temperature for that day was 116 degrees Fahrenheit.
Republican Corporation Commissioner Kevin Thompson told AZ Free News, “Our utilities have done an exceptional job of keeping the lights on and air flowing through new record setting peak demand this summer. There’s no coincidence to the fact that despite our extreme heat and load growth, Arizona hasn’t suffered the same crippling energy pitfalls of California. Arizona regulators have focused on an ‘all of the above’ generation approach bolstered with dispatchable baseload to keep our grid reliable and affordable. This Commission has worked relentlessly to do away with energy mandates that cost ratepayers more money and get in the way of what utilities should be primarily focused on: generating electricity.”
“Our utilities continue to deliver reliable power in the face of excessive temperatures and ever-increasing electricity demand. Arizona continues to be ranked in the top ten of states with the most reliable power—a critical statistic for which each of us is thankful during these record-breaking temperatures,” said Chairman Jim O’Connor.
Arizona Public Service (APS) used 8,212 MW on August 4 (compared to 8,162 MW on that date in 2023). Salt River Project used 8,219 MW in 2024 (compared to 8,163 MW in 2023). And TEP / UNS just barely missed out on the record, finishing with 2,917 MW on July 8 (compared to 2,969 MW in 2023). On August 4, TEP’s peak demand reached 2,661 MW.
“Our utilities are facing unprecedented challenges in balancing the needs of our energy demands during this hot summer while ensuring energy reliability at the most affordable rates,” said Commissioner Lea Márquez Peterson. “Their summer preparedness planning for peak demand is vitally important to keeping our families safe and cool in the summer.”
The Commission shared that these utilities have made assurances “that they are prepared to produce a combined total of more than 23,000 megawatts of electricity to meet customers’ daily summer demands.” APS has 1.3 million customers; SRP, 1.1 million customers; and TEP / UNS, 719,000 customers.
At the end of its release, the Commission “encourages Arizonans to be mindful and help reduce electric demand during peak hours. Actions, such as lowering energy use during peak hours and signing up for demand response programs can contribute to reducing overall customer demand and reducing monthly electric bills.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
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.
