ACC candidates give answers to energy question

This is the second of a two-part article on the candidates for Arizona Corporation Commission.

Of the 12 queried, seven responded.

The question posed to candidates was: “Do you feel that the current requirement for utilities to generate 15 percent of their power from renewable resources including solar and wind by 2025 is reasonable, and do you favor keeping the requirement in place?”

Speaking for Republicans Rick Fowlkes, Keith Swapp and himself, Joseph Hobbs said, “Our team is massively in favor of renewable energy; we need dependable and affordable sources of energy for Arizona’s future. However, we do not favor government mandates as a way to support that goal.

“In 2006, the ACC passed a Renewable Energy Standard and Tariff (should be referred to as a ‘mandate’) which requires all regulated power companies in Arizona to generate 15 percent of their power from renewables ... by the year 2025 without regards to cost.

“This mandate requires the power companies to file a tariff for approval with the Commission that proposes methods for recovering the ‘reasonable and prudent costs’ of complying with the mandate. It’s a series of unnecessary, discretionary rate increases programmed into our future that will affect every residential and commercial rate payer in Arizona. We are opposed to this mandate.

“The first rate increase to be applied for was by Arizona Public Service Co., the state’s largest energy provider. APS estimates that its Arizona customers will pay $48.2 million this year and $100 million per year by 2012 in increased utility rates because of the mandate.”

Fowlkes added, “The RES that requires all utility companies to generate 15 percent of their power from renewable energy sources by 2025 is a ‘one-size-fits-all’ solution that does not necessarily fit all power companies. I am in favor of renewable energy but I do not feel that the RES mandate is reasonable. I do not favor keeping this requirement in place. I agree with the Goldwater Institute that has filed a lawsuit stating that the ACC has overstepped its authority with the RES mandate.”

Swapp said that the conservative Republican candidates of Fowlkes, Hobbs and himself definitely like and want the utilities to start moving towards renewable resources so the U.S. can reduce the amount of overseas oil that is being used today.

“The 15 percent is an OK number but needs to be flexible as all utilities and energy producers are not equal. The 2025 date is acceptable, however, I think that date is too far out and the movement to use renewable resources needs to be more proactive and achieve the goal sooner,” he said.

Republican Bob Stump said, “I have opposed mandates in my legislative career and so I support realistically attainable goals which can be adjusted according to marketplace conditions and technological innovations. The Commission reviews the standard on an annual basis, which is appropriate.”

Republican Barry Wong responded by saying, “As a Commissioner on the ACC in 2006, I voted in favor of establishing this 15 percent energy standard which includes solar and wind energy. It was the right decision then as it is now. Renewable energy is important as part of the overall energy mix in Arizona which includes coal, natural gas and nuclear. Further, with rising energy prices renewables in the long run will help stabilize electricity rates as well as provide a benefit of clean and reliable energy sources.”

Ellen Sussman is a freelance writer in Green Valley. Contact her at ellen2414@cox.net.