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| PNN | 9295 |
| Work Detail | The Arizona Residential Utility Consumer Office was set up to act on behalf of utility customers to fight for fair rates. Its officials can be adversarial with utilities trying to pass rate increases. But text messages obtained through a public-records request show RUCO working closely with the state's biggest utility on a case that will affect how all regulated utilities in the state treat people with solar panels. Both RUCO and Arizona Public Service Co. want solar customers to pay more to support the power grid on which they rely at night and when their panels don't generate sufficient power. When utilities ask for rate increases, they have attorneys who argue their case before state regulators. Big corporations also bring in attorneys to make sure their rates are equitable. Average consumers didn't have attorneys representing their interests in rate cases until the state created RUCO in 1983. RUCO and its attorneys intervene on behalf of customers in the rate cases of companies such as APS and Southwest Gas. They often help reach settlement agreements in the cases, in which utilities don't get the entire rate increase they were seeking. The cases unfold like a court trial but are decided by the five elected members of the Arizona Corporation Commission. Texts discuss solar power Text messages show that RUCO consultant Lon Huber, who has been hired to work on certain matters involving solar power, frequently texts with Greg Bernosky, APS director of state regulation compliance. The text messages were requested by the Checks and Balances Project, a clean-energy advocacy that has indirectly been funded by SolarCity in the past. SolarCity frequently intervenes in Arizona utility rate cases to argue for policies such as net metering, where solar customers are paid full retail credits for their surplus power. APS has been trying for three years to change the net-metering policy. The company says net metering overcompensates solar customers and that non-solar customers in turn pay more to maintain the power grid. RUCO also has been working to amend that policy, with its attorneys arguing that there is a cost shift from solar to non-solar customers because of net metering. Text messages from last year show APS and RUCO closely aligned on the solar issue. On Oct. 20, the Corporation Commission voted to address net metering in APS' rate case in 2016, and to conclude a "value of solar" hearing that would help guide their decision on net metering for APS and other utilities. The day of the commission vote, Huber texted to Bernosky: “We need commission vote … to shape the value study before it starts.” Huber said his relationship with APS worked in the public interest. That information was provided though a formal response to questions from The Arizona Republic from RUCO Director David Tenney via a RUCO attorney. Tenney said it has long been RUCO's position that there is a cost shift from solar to non-solar customers and that the texts simply show what has been RUCO's public position on the issue. Tenney has written about the need to address the cost shift for The Arizona Republic. "It is well-known that RUCO and APS share a position here because we both acknowledge a cost shift is happening — the question is to what extent," he said. "That issue will be fully litigated in the value of solar proceeding before the commission." The texts also show Huber discussed meeting with Bernosky at Angel's Trumpet Alehouse, a bar near APS headquarters. Tenney said Huber frequently socializes with other parties in the rate cases, including SolarCity and Sunrun. Group critical of regulators' relationships The Checks and Balances Project has been harshly critical of Arizona's regulators and their relationship with regulated utilities since early 2015, when the group began filing public records requests with the Corporation Commission. The group has been trying to show the existence of "regulatory capture," where regulators fail to protect the public and instead advance the commercial interests of the regulated utilities. Checks and Balances fought and lost a court battle to obtain the deleted text messages from Commissioner Bob Stump's cellphone, and the group tipped off a local radio station about a potential conflict of interest with another commissioner, Susan Bitter Smith, that eventually led to her resignation. The group said that the text messages show RUCO's relationship with APS was too close. “RUCO reveals itself to be nothing more than an agent of APS," said Scott Peterson, Checks and Balances executive director. "When a state consumer advocate agency conspires in this manner, it’s an outrage. Arizona needs to undergo a thorough housecleaning to rid itself of this type of corruption.” RUCO, APS: Actions not inappropriate Tenney said it is not inappropriate or unusual for RUCO to work with a utility to reach an agreement in a matter at the Corporation Commission, or even for RUCO to propose new language for utilities to use in their proposed rate cases. "We take our jobs as advocates for ratepayers and taxpayers extremely seriously, and all our work is done with that goal in mind," Tenney said. "In addition, we want all parties to use RUCO’s proposals, which we believe protect Arizona ratepayers more than language that they would submit independently of working in conjunction with our staff." Bernosky said the suggestion from Checks and Balances that there is anything inappropriate about APS working with RUCO is a continued attempt by the solar industry to delay any decisions on net metering. "We roll up our sleeves and work with anyone willing to address this issue," Bernosky said. He said that while APS and RUCO agree the cost shift is a problem for non-solar customers, they have widely different positions on how to address it. He also said it was RUCO in 2013, under a different director, that made a last-minute deal with the solar industry that excluded input from APS and allowed the cost shift to continue. "We've been at this a number of years and not made any real progress on it," he said. The "value of solar" docket at the commission is expected to get a vote in October. Parties to the case, including APS, RUCO and solar advocates, have filed briefs supporting their positions. |
| Country | United States , Northern America |
| Industry | Energy & Power |
| Entry Date | 15 Oct 2016 |
| Source | http://www.azcentral.com/story/money/business/energy/2016/09/08/records-show-close-ties-between-arizona-consumer-advocate-aps/89985894/ |
