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Update: Arizona Commissioner Proposes Development Of Retail Choice Pilot

October 29, 2021

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Copyright 2010-21
Reporting by Paul Ring •

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Arizona Corporation Commissioner Sandra Kennedy has, in the ACC's current retail choice rules proceeding, requested that ACC Staff and interested stakeholders design an electric competition pilot which would provide Arizona Public Service residential and small commercial customers with the ability to choose their electric supplier

As previously reported, Kennedy had made a similar proposal as part of APS's current rate case, but the amendment was not adopted. Among other things, concerns were raised about a pilot being proposed late in the rate case when it had not been part of the record evidence

Kennedy's latest proposal made in the generic retail competition rules docket (RE-00000A-18-0405), would provide that the pilot at APS shall not be smaller than 200 MW and no larger than 300 MW in size

Kennedy proposed that parties should also design a similar program, of appropriate size, for each of the other Commission-regulated electric service companies.

Kennedy proposed that the pilot shall contain, at a minimum, the following requirements:

• The information that a competitive provider must present to the Commission in order to prove that it has the managerial, technical and financial capability to serve APS customers.

• The maximum rate that a competitive provider may charge its customers is the maximum Commission approved rate for APS.

• Minimum bond requirements for the competitive provider.

• Penalties imposed on the competitive provider for providing inadequate service as determined by the Commission.

• Method for APS to be reimbursed for the use of its transmission and distribution facilities,

• Methodology for meter reading and billing

Kennedy proposed that, within the proceeding developing the pilot, the following shall be among the priorities considered:

• Fully examine the successes and failings of electric competition in other markets, especially regarding consumer protection measures;

• Consider competitive options provided to customers be exclusively 100% renewable electricity, as determined by RECs obtained from renewable energy projects generated within the State of Arizona;

• Ensure the establishment of this pilot has a positive impact in accelerating APS's transition to clean energy;

• Ensure the establishment of this pilot does not threaten the reliability of APS's and Arizona's electric grid.

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