2 programs that utility regulators must tackle now
The Navajo Generating Station in northern Arizona. A proposed hydro facility in Yavapai County. A biomass plant in Snowflake. Palo Verde Nuclear Generating Station west of downtown Phoenix. Natural gas in Tucson.
Vigorous local and statewide debates can prove beneficial to both the future of specific energy sources and the outcome of proposed policies, such as the Clean Energy for a Healthy Arizona Initiative and Arizona Corporation Commissioner Andy Tobin’s Energy Modernization Plan.
However, as Arizonans wait for decisions impacting our state’s energy portfolio to be determined, many of us are growing impatient with the lack of action on utility-related matters that should be no-brainers. Cue the Arizona Corporation Commission.
The commission can and should ensure the following common-ground and commonsense measures are accomplished in an expeditious manner:
1. Analyze the effectiveness of APS’ Customer Education and Outreach Plan
Almost a year ago, the commission approved a significant rate increase and required APS to provide the commission with a plan to inform customers of new rate choices. Consumer, faith-based, environmental and community organizations criticized the plan, citing the lack of details necessary to ensure consumers understood their options and provide confidence that ratepayer money was being prudently spent.
Turns out our concerns were wellfounded. Consumers across the state expressed confusion stemming from unclear and inconsistent messages, often conveyed through customer service representatives. While improvements have been made — most notably through marketing materials — the commission has yet to hold APS accountable on how they are spending hard-earned ratepayer money.
To understand the impact of the recent rate increase on APS customers, the commission should require APS to provide more information including comparative data, metrics and expenditures from the last year. Information such as average and outlier electric bill and usage changes (the number of decreases and increases per customer class), number of consumers that switched from “comparable” plans, effects of the mandatory 90-day plan for new customers. Without that, the commission doesn’t have the facts essential to make sure rates are “just, fair, and reasonable for all stakeholders.”
2. Restore and increase investments in energy-saving programs
At a time when many APS and TEP customers are experiencing rising electric bills, funding for programs to help reduce electric bills has fallen. APS has proposed further cuts to funding for its energy-saving programs, and many of TEP’s programs have been scaled back. This makes no economic sense.
Energy efficiency is the lowest cost energy resource — other energy options on the table cost 3 to 10 times more. More than 40,000 jobs have been created in our state by energy efficiency, many in hands-on fields such as installation which cannot easily be outsourced. In 2017, every $1 of ratepayer money invested in energy efficiency by APS and TEP returned more than $3 in benefits to ratepayers — benefits enjoyed even by Arizonans who don’t directly participate in energy-saving programs — by avoiding the costs of new power plants and power lines.
The commission can and should require the utilities to increase funding for Demand Side Management Programs.
Practical opportunities that provide benefits to Arizona ratepayers should be easy decisions. It is time for the commission to act. Big decisions are on the horizon for Arizona’s energy future.