Gov. Ducey defends signing Prop 127 ‘escape clause’

PHOENIX — It ultimately may not matter if Arizonans vote in November to require utilities to generate more of their electricity from renewable sources.

Gov. Doug Ducey acknowledged Friday he signed legislation with the specific intent of allowing the affected companies to ignore the mandate proposed in Proposition 127 by paying a minimal fine. And he said the goal of protecting ratepayers outweighs any voter-approved constitutional provision.

“What I want to do is make sure we’ve got affordable, accessible energy,’’ Ducey told Capitol Media Services. “I don’t think when we have these mandates at the ballot box it gives the flexibility to our entrepreneurs and innovators to bring those solutions to the marketplace.’’

That mirrors the claims of Arizonans for Affordable Energy, the committee financed by Arizona Public Service, which is leading the fight against Proposition 127.

That still leaves the question of whether voters have a right to put a requirement that utilities get 50 percent of energy from renewable sources by 2030 into the Arizona Constitution.

The measure Ducey signed would not — and could not — legally override a constitutional mandate. In fact, only another public vote could alter or repeal it.

But the law, which took effect in August, spells out that any violation of a constitutional provision on renewable energy would be only a civil violation. More to the point, it makes the penalty a one-time fine that could be as much as $5,000 — and as little as $100 — effectively allowing utilities to ignore any voter-approved mandate by paying the penalty.

The governor defended that decision.

“I do not want to see hardworking taxpayer and families in our state have their energy rates hiked for a reason that will not improve the environment in our state,’’ he said.

APS spokeswoman Jenna Rowell said Friday that no decision has been made whether her company would choose to pay the fine rather than comply with what voters approve.

But APS lobbyist Rodney Ross, in testifying for the measure his company helped craft, acknowledged the utility wants the option of ignoring the results of the election if Proposition 127 were to pass.

“If that scenario were to take place, we would engage in a collaborative process with our regulators, with state lawmakers, with affected stakeholders, and together come to a decision regarding what the best course of action is to protect the state, the economy and its ratepayers,’’ Ross said.

Joe Barrios, spokesman for Tucson Electric Power and UniSource, both of which also oppose the initiative, said the companies “will try to’’ comply.

“It remains to be seen whether we would be able to do that,’’ Barrios said, saying the measure presents “some very real operational challenges.’’

The admission by both Ducey and the APS lobbyist about creating an escape clause for utilities to ignore Proposition 127 comes as both sides of the debate are spending millions of dollars in a campaign that could leave voters with a better understanding of a line popularized by Mark Twain: There are lies, damn lies and statistics.

For the moment, it is the Arizona Corporation Commission that decides how much renewable energy each regulated utility must generate. The standard, last altered in 2006, requires 15 percent by 2025.

Prop 127 would constitutionally set that at 50 percent by 2030.