The Corporation Commission’s Decision To Roll Back EV Subsidies Is A Big Win For Ratepayers

The Corporation Commission’s Decision To Roll Back EV Subsidies Is A Big Win For Ratepayers

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 >>> 

Thompson, O’Connor Offer Amendments To APS EV Charging Plan

Thompson, O’Connor Offer Amendments To APS EV Charging Plan

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.

World’s Largest Globalist Investors Now Backing ESG Push In Arizona Utilities

World’s Largest Globalist Investors Now Backing ESG Push In Arizona Utilities

By Corinne Murdock |

Two of the largest private equity firms in the U.S. and the world, Vista Equity Partners and Blackstone, respectively, are now backing the adoption of Environmental, Social, and Governance (ESG) measures in Arizona’s utility companies. 

The two globalist ESG-focused companies acquired Energy Exemplar on Halloween. Energy Exemplar owns Aurora Software Consulting Services, used by Arizona’s utilities to provide all modeling and analysis for the resource plans submitted to Arizona Corporation Commission (ACC).

The resource plans submitted by Arizona Public Services (APS), Tucson Electric Power (TEP), and UniSource Energy Services (UNS) Electric largely align with the energy transition directives set forth by Net Zero by 2050.

“Consistent with these overall trends in the energy market. APS has committed to being 100% clean and carbon free by 2050,” stated the APS resource plan.

“[Our resource plan] outlines the sources we anticipate using to satisfy customers’ need for reliable, affordable energy over the next 15 years while working toward a new, long-term objective of net zero direct greenhouse gas emissions by 2050,” stated TEP.

“[Our company has a] long-term transition to zero carbon emissions by 2050,” stated UNS Electric.

The International Energy Agency (IEA) — of which the U.S. is a member — came up with Net Zero by 2050, the roadmap to globalize the energy sector by total decarbonization, or achieving net zero carbon emissions, by 2050. Blackstone and Vista Equity Partners are among the biggest financial backers of the effort.

Specifically, Net Zero by 2050 aims to eliminate all emissions-producing energy sources (namely fossil fuels) by replacing them with less reliable renewable energy sources like solar and wind, bioenergies like biomethane, or hydrogen and hydrogen-based fuels; instituting greater energy efficiency measures, such as reducing appliance energy consumption and reducing heating and cooling temperature consumption; and electrifying all fossil fuels-based products, such as cars, buses, trucks, heat pumps, and furnaces for steel production.

The campaign also aims to institute behavioral changes among the world’s populace, such as replacing driving with walking, cycling, or public transit, and in some cases foregoing flights entirely. 

By 2030, the campaign proposes to introduce eco-driving and motorway speed limits of 60 miles an hour, phasing out gas cars in large cities (dubbed “ICE” cars, which stands for “internal combustion engine”), reducing “excessive” hot water temperatures, reducing the average weight of a passenger car by 10 percent, limiting the average space heating temperature to about 68 degrees and average space cooling temperature to 77 degrees. 

By 2050, the campaign proposes to replace regional flights with high-speed rail, preventing business and long-haul leisure air travel from exceeding 2019 levels, improving fertilizer use efficiency by 10 percent, and reducing the use of “energy-intensive” materials per unit floor area by 30 percent.

The Biden administration is fully on board with Net Zero by 2050; the State Department issued its own roadmap on the matter in November 2021. 

Blackstone, which manages about $1 trillion in assets, has committed to supporting the globalist goal of net zero by 2050. Per its 2022 climate-related financial disclosures report last year, the company estimated that it would take $115 trillion to reach net zero by 2050. The company invested about $100 billion toward that goal last year, and launched a dedicated credit platform for their ESG goals.

In 2021, Vista Equity Partners was among the first American private equity firms to join the Net Zero Asset Managers (NZAM) initiative. They pledged to reduce their $100 billion in portfolio companies’ emissions by 50 percent by 2030 and emit net zero greenhouse gas emission across their portfolio by 2050.

NZAM, launched in December 2020, is a formal partner of the United Nations Framework Convention on Climate Change’s Race to Zero Campaign. NZAM is regarded as the world’s largest climate finance alliance, with over 300 companies maintaining about $64 trillion in assets as of September. Blackstone is not part of NZAM. 

As reported last month, ACC responded to controversy over utilities’ implementation of ESG policies with the claim that it lacked the authority to ban them from doing so. 

Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.

Thompson Works To Rein In Ratepayer-Funded Incentives To Contractors

Thompson Works To Rein In Ratepayer-Funded Incentives To Contractors

By Daniel Stefanski |

A first-year Corporation Commissioner continues to fight for Arizona ratepayers.

Late last month, Republican Corporation Commissioner Kevin Thompson issued a press release to announce 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.”

Thompson educated readers on what DSM entailed, writing that “DSM is a ratepayer-funded surcharge that finances Commission-approved EE programs, which are implemented by UNS and other utilities, with the goal of reducing energy load and promoting energy efficiency.” According to Thompson’s information, “the utility spent just over $2.7 million in ratepayer funds on DSM EE programs during 2022.”

The release revealed that the “proposal (in front of the Commission) called to vastly expand the existing UNS EE budget, with nearly $5.8 million in ratepayer-funded programs up for consideration.”

In a statement, Thompson said, “Before increasing ratepayer surcharges to blindly expand energy efficiency programs, it’s important to address inefficiencies in existing programs, eliminate financial rewards for private entities, and ensure residential and low-income customers receive adequate representation in approved programs.”

The Republican commissioner specifically looked for “ratepayer funded incentives weaved throughout the DSM EE programs.” Thompson’s announcement noted that “many of the proposed programs provided incentives and rebates to third parties with financial stakes in the adoption of certain measures or the installation of certain products.” The proposal was devoid of “several incentives and payment reward programs” after Thompson’s due diligence, including:

  • Incentives to homebuilders to install energy efficient devices in certain new homes
  • Bonus incentives to sales consultants
  • Marketing stipends for third parties to promote certain programs
  • Project incentives to contractors

The proposal had another layer to it, per Thompson, with “the majority of proposed new programs targeting commercial and industrial users.” Thompson was concerned about these programs because “the majority of UNS’s customers are residential and the proposals were of limited value to the public.”

Commissioner Thompson added, “Commissioners must look out for the ratepayer, and we can’t haphazardly spend millions of dollars in ratepayer funds when there are concerns with the way current programs are being deployed. Residential customers shouldn’t be subsidizing purchases for hotel room HVAC units, electric forklifts, appliances for new homes, and truck refrigeration units.”

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.

Thompson Scores Pay Raises, Increased Staffing For Corporation Commission

Thompson Scores Pay Raises, Increased Staffing For Corporation Commission

By Daniel Stefanksi |

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.