Arizona Asks for Comments on Rate, Small Customer Impacts from Implementing Retail Choice

The Arizona Corporation Commission has issued a series of questions for stakeholder comment regarding its review of instituting a formal proceeding to re-open retail electric access, with the questions emphasizing rate and other impacts on small customers from any opening of the retail market.

See prior story for background on ACC investigation of potential re-opening of retail access

Among other things, the ACC sought comment on:

• Will retail electric competition reduce rates for all classes of customers -- residential, small business, large business and industrial classes?

• How can the benefits of competition apply to all customer classes equally or equitably?

• What are the costs of the transition to retail electric competition, how should those costs be quantified, and who should bear them?

• Please identify the risks of retail electric competition to residential ratepayers and to the other customer classes. What entity, if any, would be the provider of last resort?

• What, if any, features, entities or mechanisms must be in place in order for there to be an effective and efficient market structure for retail electric competition? How long would it take to implement these features, entities, or mechanisms?

• Will retail electric competition require the divestiture of generation assets by regulated electric utilities?

• Among the states that have transitioned to retail electric competition, which model best promotes the public interest for Arizonans? Which model should be avoided?

• How have retail rates been affected in states that have implemented retail electric competition?

• Is retail electric competition viable in Arizona in light of the Court of Appeals' decision in Phelps Dodge Cop. v. Ariz. Elec. Power Coop., 207 Ariz. 95, 83 P.3d 573 (App. 2004)? Are there other legal impediments to the transition to and/or implementation of retail electric competition?

Comments are due by July 15, and replies by August 16. The first of the ACC's two public meetings on retail choice will occur after comments and replies are received.

Docket E-00000W-13-0135