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| Why So Many Arizona Groups are Intervening in a Nogales Electric Rate Case |
Why So Many Arizona Groups are Intervening in a Nogales Electric Rate CaseFeb 26, 2016, 1:42pm MST bizjournals.com
The lunch table is getting crowded for the rate case submitted by UNS Electric Inc. impacting around 90,000 customers in Southern Arizona. In addition to Arizona Public Service Co., other groups such as Wal-Mart Stores Inc. and the Alliance for Solar Choice have filed for intervener status in the case before the Arizona Corporation Commission. Intervener status allows a group to take a seat at the negotiating table in a rate case before the ACC.
Most intervening groups are concerned about any unfair or inequitable price increases but others believe ACC's decision in the case will likely set a precedent for future rate cases that will come before the regulatory body in the future, including APS' planned case later this year. APS is the state's largest utility. Wal-Mart Stores Inc. submitted testimony asking the ACC to keep rates as low as possible for its three stores in the UNSE territory. Steve Chriss, Wal-Mart senior manager of energy regulatory analysis, cautioned the commission about allowing rates that boosted return on equity to unfair levels. Other interveners represent a broad cross-section of the solar industry and the adversarial relationship between them and utilities has been well-covered. The Alliance for Solar Choice is concerned not only about the direct impact on rooftop solar customers in UNSE territory, but that this rate case may create a precedent impacting customers in Tucson Electric Power Co. and APS territories. While TASC spokesman Court Rich, who is with Scottsdale-based Rose Law Group, has serious concerns about the direct impact on solar, the rate structure being proposed also impacts emerging technologies. TASC has issues with those effects as well. “It is important to note that emerging technologies such as storage, are still in their nascency and there has been little research to understand the optimal rate design for integration,” he said in an email. “Additional information is needed before blindly adopting mandatory demand charges. If the emerging technologies aren’t ready or accessible to all customers, because they are too expensive for example, then the new demand charges are effectively the same as a more confused and punitive fixed charge.” The UNSE rate case was first filed in May, and the interveners started petitioning for status within days of the filing. Not every petition achieves intervention status. The Sun City Homeowners Association filed too late to get a seat at the table. “We can still participate, and we’re concerned that with APS intervening in (the UNSE case), decisions will be made impacting our homeowners,” said Greg Eisert, government affairs chairman for the HOA. “We filed to late to intervene, and will have to rely on RUCO and others to represent our position. Of course, we’ll comment throughout the process.” Rate cases can take 18 months to 2 years to achieve final approval. Interveners in the UNS Electric Co. rate case Organizations not granted intervener status |
Eric Jay Toll Reporter Phoenix Business Journal