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| ACC Race Could Shift Balance to Either Party |
ACC Race Could Shift Balance to Either PartyPhoenix Business Journal - The race for three Arizona Corporation Commission seats could wrest control away from one party, solidify it moving forward, or simply maintain the status quo. Much is at stake, including the ongoing implementation of the state's renewable and energy efficiency standards, as well as utility rates for electricity and water. Three Democrats and three Republicans are squaring off in the race, along with one Libertarian and two Green candidates. Both of the Democratic commissioners (Paul Newman and Sandra Kennedy) and one of the three Republicans (Bob Stump) are up for re-election - and both parties, of course, want the majority of the five seats. Renewable questions One of the biggest issues - just as it was four years ago when Newman, Kennedy and Stump won their seats on the ACC - is Arizona's renewable standard and how it is being deployed. With Arizona Public Service Co., Tucson Electric Power Co. and others on target to clear the ACC's current requirement for utilities to get 15 percent of their power from renewable sources by 2025, Democrats including ACC candidate Marcia Busching are pushing to examine the standard. Newman has gone so far as to suggest outright that the bar be raised. "The plan passed in 2006 was talked about in 2001," said Newman. "The landscape has changed." Republicans, including candidates Susan Bitter Smith and Bob Burns, say the standard is fine as it is. "The commission will help provide people with more solar at a low cost," Stump said, adding that it will do so while keeping costs low for ratepayers. Bitter Smith echoed those opinions, and both she and Stump noted that a second-quarter survey by the Solar Energy Industries Association and GTM Research placed Arizona No. 2 in terms of installations - largely because of utility systems, not residential. "I believe it's going like it should," she said. Kennedy also backs re-examining the renewable standard to see what, if anything, needs to be changed. But she said any alterations should involve stake-holders."We can't just pick a number out of a hat and say, ‘This is what we're going to do,'" she said. "We need to have all the stakeholders at the table." Busching agreed. "On a personal level, I think (the standard) should be increased," she said. "On a policy level, I want to hear more from stakeholders on what is working." Utility rates Incoming commissioners also will have to deal with at least one electric rate case, as the ACC isn't likely to wrap up Tucson Electric Power's request by January. APS has its rates set for the next four years from a settlement. In a candidate debate aired Oct. 1 on KAET-TV Channel 8, Burns said he was against increases in general. "In the current economic condition we are in, an increase in rates would be very harmful to the overall economy," he said. Bitter Smith, who once served on the elected board of the Central Arizona Project, said a larger ACC target for the upcoming term would be looking at water utility rates. While the state has about 200,000 people on private water systems, the rates are as diverse as the age and health of those systems. "It's a growing problem, and it's one being exaggerated by an aging infrastructure," she said. Stump would like to see water rates evened out to help consumers. "If we reduce the lumpiness, that is better for both companies and ratepayers," he said. Busching also sees a problem with the water rates. "Certainly for the consumer when they see 30, 40, 50 percent rate hikes, it's a critical issue," she said. Kennedy said the need for increased investment in infrastructure stretches beyond water into broadband access in rural areas, and she wants the commission to focus on the technology infrastructure strung throughout the state."When you think about it, it's another way to create jobs and put people to work," she said. Business operations Most of the candidates said the commissioners and staff perform their business functions well. Those include paperwork for new business incorporations and securities investigations. Both of those depend on relationships with the Legislature, which haven't been smooth in recent years. During the state's budget crisis three years ago, parts of the ACC money dedicated to those functions were swept into the General Fund. There also have been bills looking to assert legislative authority in setting energy policy. Busching said she would like things streamlined to make it easier for businesses to file their paperwork. Bitter Smith agreed the process should be simpler. "It's cumbersome," she said. "In any government agency, there are efficiencies that can be gained." By: Patrick O'Grady/Phoenix Business Journal Friday, October 12, 2012 |