Co-chair Rebecca Timmer introduced Arizona Corporation Commissioner Kevin Thompson.
Background:
- 25 years in regulatory energy realm in Arizona
- U.S. Air Force Veteran of Desert Storm
- Engaged with Pinal County and the community serving on Corporation Commission
Commission Role:
- 99% of effort is regulating non-municipal utilities including water, gas and electric.
- Securities Division investigates and prosecutes securities fraud
- Work with NTSB on railroad and natural gas pipeline safety
- This year many water rate cases are being reviewed vs. previous year more electric utility rate cases were reviewed
- Regulatory environment and practices affects utility credit ratings; ability to raise capital
- Utility credit ratings in AZ utilities are improving by bringing regulatory environment consistency back to commission
- Power procurement from third party allows for preferred contract negotiations
- Last year cut over $200 million in APS budget to mitigate rate increases
- Eliminated some electric vehicle programs from utilities, such as charger implementation, to allow free market to compete
- Reviewing homebuilder rebates for using industry standard energy efficient appliances
- New power generation/investment needs to keep up with coal plants closing; looking at increasing natural gas capacity and transmission lines to allow shared power with other states
- Increased EPA regulations through federal government factor in to increased fossil fuel costs resulting in coal plant closings and increasing pressure on natural gas
- Transmission line technology is improving to increase capacity
- System Reliability Benefit (SRB) option for utilities to seek rate relief/mitigating rate shock
- Utilities report need for infrastructure requires accelerating installation of transmission line permitting
Commissioner Thompson was asked about the number of electrical districts in Pinal County and how issues with reliability will be addressed
- SCIP (San Carlos Irrigation Project) example of how services expanded beyond generation station capacity. Run by federal entities that will not invest in infrastructure to improve. Legislation attempted to resolve investment issue but has yet to be successful. Request sent to Governor to intervene on rate impacts.
- Rate cuts have started happening because of increasing visibility by the commission and congress
- Natural gas pipelines need to increase pipe size to generate more capacity; will affect rates as long-term investment is required
Warde Nichols asked about bio-mass plant opportunities
- Discussions revolve around road access to remove fallen trees to generate fuel efficiently. Resolving this issue will make it more economically feasible
Commissioner Thompson provided a link to their newsletter for ongoing updates:
https://azcc.gov/kevin-thompson/contact
The committee discussed Memorial Day observances and thanked Commissioner Thompson for his military service in the U.S. Air Force.
The next PPGRC Meeting will be on June 25th
Our next Pinal Partnership Monthly Breakfast Meeting will be June 21st at Robson Ranch, more details will follow.
Visit https://pinalpartnership.com/meetings-and-events/ for more information.
