Arizona Commissioner Offers To Help Design Pilot Retail Electric Choice Program To Move Competition Forward

In a memo to fellow Commissioner Sandra Kennedy, Arizona Corporation Commissioner Justin Olson offered to help design a pilot program for retail electric choice, after Kennedy said in a meeting last week that, if the ACC were to move forward with retail competition, the ACC should first institute a pilot choice program.

Kennedy's comments were first reported by EnergyChoiceMatters.com

In the memo to Kennedy, Olson wrote, "You mentioned that you would like to see a pilot program implemented as a first step towards adopting retail electric completion rules. When you previously brought up the possibility of perhaps having a pilot program, I was concerned that the idea would not be workable because a limited marketplace would have a very limited ability to entice competitive energy service providers to participate in it. Since the idea was mentioned only once in a passing comment at a staff meeting and due to my concern that the idea would not be workable, I did not dedicate resources to trying to develop the idea further."

"But, given your comments yesterday [June 18] that this is a necessary first step for your support of a transition to a restructured market, I would be honored to attempt to put something together that you could support and that might have a chance at successfully attracting participants," Olson wrote

"As I work on this effort, I would value your thoughts on what a potential pilot program might look like and if you have any suggestions on how we might make participation in a limited marketplace attractive enough to entice participation," Olson wrote

"There will be a lot of questions and challenges that will need to be worked through to see if there is a way to develop a pilot program that has a chance of success. I look forward to working through these issues and will value any input that you can provide. I look forward to discussing this important issue with you and our fellow Commissioners," Olson wrote