APS President Jeff Guldner to speak at Tuesday's Open Meeting


APS President Jeff Guldner will testify in front of the ACC again this Tuesday.  Here is the Agenda item.


Arizona Public Service Company (E-01345A-19-0003) - Discussion, consideration and possible vote regarding the APS rate comparison tool, implementation of effective Customer Outreach and Education Program, and proforma billing.

Arizona Public Service Company ( E-01345A-19-0005 and E-01345A-19-0043) – In The Matter of the Commission's Inquiry/Investigation into the Campaign Expenditures and Political Participation of Arizona Public Service Company and Its Affiliates, Subsidiaries and Pinnacle West Capital Corporation in the Election Periods of 2012, 2014 and 2016; In the Matter of the Commission's Investigation into the Political Spending of Arizona Public Service Company and Its Affiliates, Including Pinnacle West Capital Corporation. Discussion and questions related to documents submitted by Arizona Public Service Company in response to Commissioners. Discussion and questions related to Commissioner Kennedy’s letters to Arizona Public Service dated November 27, 2019 and December 19, 2019.


I'm a Fann...

Fann and PattersonLast Thursday I had the opportunity to host a luncheon with Senate President Karen Fann.  She discussed her priorities for the upcoming Legislative Session.  Those priorities are budget, budget, budget.  They are looking for a short, efficient session.  

Here is some background on the Senate President.

About Karen Fann

Senator Karen Fann (AZ-District 1) is a lifelong Republican, raised on conservative rural values by her hardworking parents, Jim and Sylvia Fann. She moved with her family to Prescott at the age of four.

Karen is the owner and CEO of a highway construction company specializing in the installation of guardrail and signs throughout the State of Arizona, which recently celebrated its 36th business anniversary. Her business was started in 1984 with $500 and has grown steadily to become Arizona's largest guardrail company, with 40 employees.

In addition to the guardrail company, Karen and her husband Jim owned and operated the equine facility FANN-M Ranch for nine years. The FANN-M Ranch provided services to boarded horses, produced equine competitions and worked with local 4-H clubs and other nonprofit organizations for community fundraisers.

Prior to becoming a local business owner, Karen gained four years of experience in the legal field and ten in the airport/ airline industry; she later obtained her license as an Arizona Realtor. She is a licensed contractor with the Arizona Registrar of Contractors; past president of Yavapai County Contractors Association; and past president, Prescott Chapter, of the National Association of Women in Construction.

Her dedication to community led Karen to serve on numerous committees and boards, representing Central Arizona, as well as, the Town of Chino Valley, where she was Mayor for six years. Her four years of service on the Prescott City Council included Mayor Pro Tem.



Freeport is looking for a Regulatory Strategy Specialist.

This looks interesting

Under limited supervision, this position requires identification, analysis, reporting, and recommendations on a wide variety of utility ratemaking and energy policy issues inside a sophisticated energy supply organization operating within many jurisdictions often as the largest consumer.  Coordinates between internal and external partners to ensure operations have access to sustainable, reliable and cost-effective power supply options.  Responsible for a variety of business and administrative activities that may include financial analysis, accounting, reconciliations, and billing related to providing power to mining operations.   









Resource Planning workshop will be March 10th and 11th

The Alliance has been participating in the Integrated Resource planning process since 2001.  For the past few cycles, we have been encouraging the Commission to change the IRP process in order to make it more robust and effective.  We believe that the ACC should approve (instead of simply "Acknowledge" the utility's plan and that the ACC should have to approve any material variations from the plan.  

The ACC would also like to move much of the planning function from the utilities to the ACC.  This would give the ACC much more input over the entire process.  

We support these changes.  Here is the announcement and Docket number.  



Stakeholder Meeting and Workshop


In the Matter of Possible Modification to the Rules on Resource Planning and Procurement, Arizona Administrative Code R14-2-701 et seq.; Renewable Energy Standard and Tariff, R-14-2-1801 et seq.; Electric Energy Efficiency Standards, R14-2-2401 et seq.; and Gas Utility Energy Efficiency Standards, R14-2-2501 et seq.


Docket No. RU-00000A-18-0284


Tuesday, March 10, 2020 and Wednesday, March 11, 2020 at 10:00 a.m.


Retail Access Stakeholder Workshop will be on Feb 25th and 26th

The AzCPA has long supported retail access. Our view is that there are essentially two models--vertically integrated and competitive--and that the competitive model is further divided into retail and wholesale.  While most of our efforts have been focused on ensuring a competitive wholesale market, we believe that consumers benefit from a competitive retail market as well.   

The ACC has made several attempts at retail access...the latest ended in 2013.  It's a long process and we are starting it again.  The title and docket info are below.  I will cover the meeting on the 25th and 26th.  Let me know if you would like more information.   


In the Matter of Possible Modifications to the Arizona Corporation Commission's Retail Electric Competition Rules

Docket No. RE-00000A-18-0405

In case you missed it....WSJ article on PGE.

I'm posting this in case you missed the WSJ article about PGE.  It's excellent.  

PG&E Corp. PCG 3.45% Chief Executive Tony Earley liked the idea the minute he heard it. He would change the signature line on company emails—“PG&E is committed to protecting our customers’ privacy”— to promote safety instead.

Six months after a top state regulator suggested it, nothing had happened.

“We have one more level of governance to go through before we can change,” Jack Hagan, the regulator, recalled Mr. Earley saying.


Retail Electric Competition: Responses from Industrial Consumer Groups

The ACC has been dabbling with Retail Access for 25 years.  That's not an exaggeration.  As RUCO Director I signed Retail Access Settlements with APS TEP and SRP in 1999.  We had been working on the issue since 1994.  The ACC unwound those agreements in response to the California Energy Crisis of the early 2000s.  

Since that time, the ACC and parties have made various attempts to restart the process.  The last major effort was abandoned in September of 2013.  

Since 2013, there have been a lot of changes.  Retail Access has a track record in quite a few states. Opponents and supporters both use the example of Texas and Nevada to support their cases.  There as also been a major shift in the media view of APS.  The media are now more likely to view consumers being captured by as opposed to protected by the utility.  

Currently there are two Commissioners--Burns and Olson--who are strong advocates for Retail Access.  Commissioner Kennedy is opposed while Commissioners Dunn and Marquez Peterson are open to discussion.  

In order to foster that discussion, the ACC staff posted a series of questions.  You can download Staff Competition Questions

Last week the Industrial Consumer group (AECC) filed its responses to the questions. Click to download the AECC responses  I think that they are informative and will give you a flavor for the issues.

Meanwhile, here is a link to the docket.  After you click the link you can open the "Documents" tab and see everything that has been filed. 

We are in the early stages of this iteration of the process. The ACC is planning to host a series of workshops.  The Alliance has participated in support of competition and we will do so in the future.  If you have any questions about this docket or our positions, please call me. 

APS Response to Kennedy letter about Rate Comparison Tool

Recall that the APS Rate Comparison Tool website sent 12,000 customers to the incorrect rate.  APS President Jeff Guldner addressed the issue for 6 hours at the December Open Meeting.  The APS investigation has traced the source of the problem to a February 2019 software update.  All of the customers were billed properly, but for some of them, the advise from the rate tool was incorrect.  

Com. Kennedy issued a letter a few weeks ago (see entry below) in which she pointed to problems before February 2019 and argued that APS had not correctly identified the problem. 

APS VP of Regulatory Affairs has issued a response in which the company explains the complaint that occurred before the February update.

Normally, I would not devote so much time to this issue, but it is very important to the ACC and to the company--plus, it has received a lot of media attention so I want to make sure that you can follow it if you are interested.  


APS Procedural Schedule is out

Recall that under a traditional schedule for the APS rate case, the final vote would likely be in 2021 after the swearing in of new Commissioners.  The ACC asked the hearing division to draft several accelerated schedules and then called an open meeting to approve one of them.  They chose "accelerated Schedule 3"  Here is a copy. APS Procedural Order

The hearing will start on July 17th and this is likely to force us to reschedule our summer conference in San Diego.  I'll keep you apprised of the new dates. 

Meanwhile, the hearing officer instructed the parties to bring a grid that lays out there issues and I will be circulating with Alliance members to discuss the details of the case.