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Arizona Corp. Commission Chair Wants Proposal For Small Customer Retail Electric Shopping Program

--- To Be Modeled After Current AG-X Alternative Supply Program For Large C&Is

--- Arizona Launches Workshop Process For "Comprehensive" Discussion Of Retail Choice

November 7, 2018

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Reporting by Paul Ring • ring@energychoicematters.com

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Note: This story was first published the evening of Nov. 7 with an alert to our email subscribers

The Arizona Corporation Commission this evening voted 5-0 to initiate a workshop process to have a "comprehensive" discussion of retail electric competition, as ACC Chair Tom Forese said that he wants Staff to ready a proposal to allow a limited number of smaller customers to take competitive supply, similar to the AG-X program currently in place for large customers.

Concerning the small customer shopping program, Forese envisions the program as a, "conceptual bridge to retail competition."

Forese proposed that the small customer program be similar in size to the AG-X program (discussed further below), but separate. The small customer program would be in place at all of the investor-owned utilities, but not the co-ops, Forese proposed

Forese wants Staff to draft a program that could be voted on at the December 17 ACC meeting

Forese said that the small customer program would allow the ACC to take action sooner, as the actual implementation of electric competition would realistically be somewhere down the line under the workshop process.

As previously reported by EnergyChoiceMatters.com, the AG-X program is a program under which a capped number of large customers and load are permitted to procure alternative sources of generation supply, which is delivered to the utility, with the utility ultimately supplying the customer with such alternative generation. For example, at APS, Rider AG-X is available to customers who have an Aggregated Peak Load of 10 MW or more and are served under Rate Schedules E-34, E-35, E32-L, or E-32 TOU L. At APS, total AG-X program participation is limited to 200 MW of customer load, 100 MW of which was initially reserved for customers with single-site peak demands of 20 MW or greater and with monthly average load factors above 70% unless not fully subscribed during the solicitation process.

Separately, the ACC voted 5-0 to start a workshop process for a comprehensive discussion of retail electric competition

Forese sought to have the first workshop meeting in early December, potentially December 3rd, but the actual date will be finalized based on the schedule of the workshop co-chairs, Commissioner Bob Burns and Commissioner Boyd Dunn

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