Arizona Commissioner: "Long Way To Go" Before Deciding Retail Electric Choice

Cites Experience in California, Texas (Notes Recent Texas Emergency Alert, Price Spikes)

Cites "Pattern Of Consumer Fraud" Under Retail Choice

Suggests 20 Square Mile Geographic Pilot For Retail Choice (All Customer Classes)

August 20, 2019

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Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Arizona Corporation Commission has, "a long way to go," before being able to make a decision concerning retail electric choice, Commissioner Sandra Kennedy wrote in a memo filed in the electric choice proceeding

Kennedy's memo followed a memo from ACC Chair Bob Burns who, as first reported by EnergyChoiceMatters.com on August 14, had proposed that Staff develop a rules package for "full" retail competition to be docketed by January 10, 2020

Kennedy agreed with the issues raised by Burns that should be considered by the Commission during its review of electric choice, but wrote that, "It is evident that the Commission has a long way to go and much more to consider before it makes a decision about retail electric restructuring and competition."

Kennedy wrote that, "I took particular notice of the states that have attempted competition and seem to be having second thoughts, but are now finding it hard to find their way back to where they were before allowing competition. This underscores the risk the Commission takes if it makes changes too hastily. Such a decision might not be reversable if the Commission deregulates. We have seen examples in California and Texas of what can go wrong once deregulation occurs."

Kennedy attached to her memo, without comment, a recent press report about ERCOT's emergency alert declaration and scarcity pricing last week.

"Examining what has happened in other states, I really didn't see enough evidence that residential users have saved money except through Community Choice Aggregation ('CCA'), but I certainly saw many problems, especially with what appears to be a pattern of consumer fraud," Kennedy wrote

"I would like Staff to examine how CCA would be implemented," Kennedy wrote

"I also want Staff to explore as part of the rules, a proposal for a test area of about 20 square miles that would allow retail competition for residential, commercial, and industrial customers. This could provide an opportunity to test competition and the market to determine what problems or issues might arise," Kennedy wrote

Docket RE-00000A-18-0405

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