Cites "Pattern Of Consumer Fraud" Under Retail Choice
Suggests 20 Square Mile Geographic Pilot For Retail Choice (All Customer Classes)
August 20, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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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 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