Arizona RUCO Interested in Info on Oregon-Style Direct Access

The Arizona Residential Utility Consumer Office (RUCO) said in reply comments concerning the state's investigation of electric retail access that it is interested in learning more about several retail access designs which do not extend choice eligibility to all customers.

Specifically, RUCO said that among those topics of interest is, "Portland General Electric's (PGE) multiyear opt-out, specifically, if a similar rate to PGE's schedule 489 would work in Arizona or if it is unique to Oregon (possibly due to their commercially advantageous hydroelectric resources and/or current state of resource adequacy)."

The PGE long-tem cost-of-service opt-out (Schedule 489) is notable for both being limited to medium and large customers (those meeting individual demand thresholds), and for total participation also being capped.

RUCO said that it is also interested in learning more about the Arizona Public Service AG-1 pilot, "and the level of cost shifts that could occur if expanded." The AG-1 program is also limited to large customers, with total participation capped.

"Finally, RUCO is wondering how a legal block preventing forced divesture would impact the development of a competitive market. If Arizona cannot order incumbents to divest, could this lead to a 'cherry picking' of generation assets, leaving those on cost of service/standard offer rates shouldering expensive or out-of-date generation facilities?"

RUCO is holding a retail access workshop on August 27.