Partisan makeup of the Corporation Commission | |
Commission overview | |
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Formed | 1912 |
Type | Public utilities commission |
Jurisdiction | Government of Arizona |
Headquarters | Phoenix |
Employees | 223 |
Annual budget | $27,993,000 |
Commission executives |
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Website | www |
The Arizona Corporation Commission is the Public Utilities Commission of the State of Arizona, established by Article 15 of the Arizona Constitution. Arizona is one of only fourteen states with elected commissioners. [1] The Arizona Constitution explicitly calls for an elected commission, as opposed to a governor-appointed commission, which is the standard in most states, [2] because its drafters feared that governors would appoint industry-friendly officials. [3] They are directly elected statewide and serve staggered four-year terms. Due to its separation from the executive branch, the commission is often referred to as the "fourth branch of government." [4] [5] [6] The characterization of the Commission as the "fourth branch of government" is contradicted, however, by Article III of the Arizona Constitution, which provides that "[t]he powers of the government of the state of Arizona shall be divided into three separate departments, the legislative, the executive, and the judicial". [7]
The commission has five members. As of January 2023 [update] , the commissioners are Lea Márquez Peterson, Nick Myers, Jim O'Connor, Kevin Thompson, and Anna Tovar. [8]
The commission's scope of responsibility is generally larger than most commissions in other states. Some of its major duties include regulating public utility companies, regulating the incorporation of businesses and organizations, securities regulation, and railroad/pipeline safety.
In January 2018, Former Speaker of the Arizona House of Representatives and Commissioner Andy Tobin proposed an energy plan that includes an 80 percent clean energy target and a 3,000 MW energy storage procurement target, which would surpass California and New York. [9] [10] [11] [12] [13] [14]
The current Chairperson of the Arizona Corporation Commission is Jim O'Connor.
Prior to January 5, 2016, the chairman was Susan Bitter Smith. She joined the commission in 2013. [15]
As of 2015, the Arizona Attorney General’s office began investigating a complaint that seeks to have Bitter Smith removed from her position due to conflict-of-interest issues. As chair of the commission, Bitter Smith is in charge of regulating the telecommunications industry. However, at the same time, she was a lobbyist for the industry, [16] running her own public relations firm called Technical Solutions. Until recently, the company described itself on its website as a “full service government affairs company including direct federal, state and local lobbying activities with agencies ranging from the Federal Communications Commission, to the Arizona Corporation Commission, to the Arizona Legislature and Arizona municipalities.” [15] The description from Technical Solution's website was removed after the Arizona Attorney General began investigating the complaint against her. [15]
An attorney with the Arizona Corporation Commission, Eric Hill, quit his position in June 2016 and began a new job representing rooftop solar companies such as SolarCity at the Scottsdale, Arizona-based Rose Law Group. The law firm represented solar companies in legal battles between solar companies and the Arizona Public Services Company (APS), which is the largest and oldest electric company in Arizona. [17] [18] The legal battles were about net metering; the two sides argued over how much electric rates should be and how much refunds should be to homeowners running rooftop solar panels. [17]
The Hearing Division, under the supervision of the Chief Hearing Officer, conducts evidentiary hearings and issues recommended orders for the Commissioners' consideration and approval. Chief Hearing Officers, since creation of the position, have been:
As part of its role in regulating public utilities, the Commission established a Renewable Energy Standard and Tariff (REST) [19] in 2006. To provide public information related to implementation of the REST, the Commission together with the regulated electric utilities in Arizona have developed a website called Arizona Goes Solar. [20] The authority for the Commission to establish a renewable energy standard has been challenged several times in court by the Goldwater Institute (see Miller v. Arizona Corporation Commission). The standard was most recently upheld by the Arizona Court of Appeals in April 2011. [21]
Current Corporation Commissioners as of 2023 [update] are Lea Márquez Peterson (R), Nick Myers (R), Jim O’Connor (R) (Chair), Kevin Thompson (R), and Anna Tovar (D). [22]
Commissioner Lea Márquez Peterson (R) | Commissioner Nick Myers (R) | Commissioner Jim O’Connor (R) | Commissioner Kevin Thompson (R) | Commissioner Anna Tovar (D) |
Net metering is an electricity billing mechanism that allows consumers who generate some or all of their own electricity to use that electricity anytime, instead of when it is generated. This is particularly important with renewable energy sources like wind and solar, which are non-dispatchable. Monthly net metering allows consumers to use solar power generated during the day at night, or wind from a windy day later in the month. Annual net metering rolls over a net kilowatt-hour (kWh) credit to the following month, allowing solar power that was generated in July to be used in December, or wind power from March in August.
The Public Utility Regulatory Policies Act is a United States Act passed as part of the National Energy Act. It was meant to promote energy conservation and promote greater use of domestic energy and renewable energy. The law was created in response to the 1973 energy crisis, and one year in advance of a second energy crisis.
American Electric Power Company, Inc. (AEP), is an American domestic electric utility company in the United States. It is one of the largest electric utility companies in the country, with more than five million customers in 11 states.
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The energy sector in Hawaii has rapidly adopted solar power due to the high costs of electricity, and good solar resources, and has one of the highest per capita rates of solar power in the United States. Hawaii's imported energy costs, mostly for imported petroleum and coal, are three to four times higher than the mainland, so Hawaii has motivation to become one of the highest users of solar energy. Hawaii was the first state in the United States to reach grid parity for photovoltaics. Its tropical location provides abundant ambient energy.
The National Association of Regulatory Utility Commissioners (NARUC) is the national association representing the U.S. state public service commissioners who regulate essential utility services, including energy, telecommunications, and water. Founded in 1889, the Association is a resource for its members and the regulatory community, providing a venue to set and influence public policy, share best practices, and foster solutions to improve regulation.
The Public Service Commission of Wisconsin is an independent regulatory agency responsible for regulating public utilities in the energy, telecommunications, gas and water companies located in U.S. state of Wisconsin. As of 2021, the agency regulated more than 1,100 electric, natural gas, telephone, water, and water/sewer utilities.
Susan Bitter Smith is currently the vice-president of Technical Solutions, and executive director Arizona/New Mexico Cable Communications Association. She is a registered Republican in the state of Arizona, and has held multiple public offices. She served as Chairman of the Arizona Corporation Commission., but resigned in December 2015 amid controversy. Prior to serving on the ACC, she was president of the Central Arizona Project. Prior to that, she was Vice Mayor of the city of Scottsdale, Arizona. She also served as a member for American Society of Association Executives. Her other memberships have included service on the St. Theresa Catholic School Development Board, and presidency of the ASU Walter Cronkite Endowment Board (1998–1999)
Net metering is a policy by many states in the United States designed to help the adoption of renewable energy. Net metering was pioneered in the United States as a way to allow solar and wind to provide electricity whenever available and allow use of that electricity whenever it was needed, beginning with utilities in Idaho in 1980, and in Arizona in 1981. In 1983, Minnesota passed the first state net metering law. As of March 2015, 44 states and Washington, D.C. have developed mandatory net metering rules for at least some utilities. However, although the states' rules are clear, few utilities actually compensate at full retail rates.
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Net metering in Arizona is a public policy and political issue regarding the rates that Arizona utility companies pay solar customers sell excess energy back to the electrical grid. The issue has two political sides: utility companies that to pay solar customers the "wholesale rate" for their excess electricity, and solar panel installers and solar customers who want utility companies to pay the "retail rate".
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Nick Myers is an American politician who serves on the Arizona Corporation Commission, first being elected in the 2022 election. Prior to serving in the commission, Myers worked as a software engineer for Intel and various satellite communication companies, before starting his own small businesses.