Arizona Commissioner Criticizes "Hijacking" Of APS Rate Issues By Retail Choice Proponent

Won't "Pre-Judge" Retail Competition, Cites Interest In Municipal Aggregation, Community Solar Pilots

July 7, 2020

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Reporting by Paul Ring • ring@energychoicematters.com

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Arizona Corporation Commissioner Sandra Kennedy wrote a letter to Commissioner Justin Olson in which Kennedy criticized Olson's introduction of retail choice as a potential solution to the various rate plan and education issues facing customers at Arizona Public Service

See background on the matter here

Kennedy wrote, "During the June 18, 2020, Special Open Meeting regarding Arizona Public Service Company ('APS')'s faulty online rate tool and their overall failed Customer Outreach and Education Plan (COEP), you hijacked a large portion of the time to opine on retail competition. APS ratepayers have been waiting for more than a year for this Commission to heed the evidence presented by the Overland Report, by Ms. Alexander's report, and countless filings by Ms. Champion and Mr. Padgaonkar and other harmed ratepayers. They continue to wait for this Commission to provide them with immediate, real relief."

"We have been discussing this for over a year. It is unfortunate, and offensive, that you took focus and time away from the noticed topic -- our continued scrutiny of APS -- to push me for my support on retail competition. I am behind the idea of competition so that greedy monopolies no longer have a death grip on their captive ratepayers. I would be open to exploring a pilot project with community choice aggregation (CCAs) and/or community solar. However, a transition to retail competition should not come at the cost of APS ratepayers and thorough scrutiny of APS's specific actions. As elected regulators we are charged with the constitutional responsibility to ensure just and reasonable rates from APS and, each and every regulated utility in this state. This meeting was supposed to be focused solely on the ongoing, specific issues related to APS and the 2016 rate case. What a dereliction of our duty it was for this Commission to end the meeting without any action for APS ratepayers. What an irresponsible use of time to speechify on retail competition and to bulldoze a fellow Commissioner as well as a member of the public towards your perspective on this marginally related matter," Kennedy wrote

"Your priorities as a regulator are concerning, as I do not believe we have the same interests at heart. I know pressure is building, as several of your campaign contributors are hoping that retail competition will be brought to a vote soon. Unfortunately, the lobbyists that paid for your election will just have to wait. I will not pre-judge retail competition, or any other case, until all the facts have come before me and this Commission," Kennedy wrote

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