Third Vote In Favor Of Retail Electric Choice Still Elusive In Arizona

June 19, 2020

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Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

There are still not three votes on the Arizona Corporation Commission in favor of moving forward with retail electric choice in Arizona

During a meeting focusing on Commissioner and customer concerns with a customer education plan from Arizona Public Service, meant to address new tariff designs and the placement of customers onto various rate plans (including concerns about the utility potentially over-earning due to customers being placed on plans other than the most economical for the customer), Commissioner Justin Olson reiterated his belief that customer choice is a solution to the problems facing APS customers, as stated in a recent memo

Olson stated that with retail choice, customers could simply "fire" their supplier due to high rates or other dissatisfaction, and contrasted that ease with the challenges that the ACC is facing in correcting the issue at APS (due to legal authority, due process, and other concerns in attempting to make the current APS rates interim or adopting other relief)

Olson noted that APS rates have been increasing even as wholesale electricity costs have been decreasing -- an outcome Olson said would not be seen in a competitive retail market

Olson asked his fellow Commissioners to move forward on a process to adopt rules to implement retail electric choice

ACC Chairman Bob Burns, who assisted in the drafting of the proposed retail market rules, reiterated his support for electric choice

Olson urged his other fellow Commissioners to voice support on moving forward with retail electric choice implementation

Support from a third Commissioner was not forthcoming during the meeting

Olson specifically asked Commissioner Sandra Kennedy about her position on electric choice. Kennedy said that, if the ACC were to move forward with retail competition, the ACC should first institute a pilot choice program, but did not discuss specifics concerning what her view of the pilot would be, and generally did not voice specific support for Olson's desire to proceed with choice implementation.

While the electric choice docket was noticed on the agenda, several Commissioners said discussion of choice should be limited to choice as it relates to the APS customer education and rate plan issues, rather than nuts and bolts of specific choice programs

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