Arizona Corporation Commission “Honors Voters” With Rejection Of Green Energy Mandate Rules

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On Wednesday, the Arizona Corporation rejected green energy mandates much like those rejected by Arizona voters in 2018 when they voted down Proposition 127. Commissioner Justin Olson, who was behind the effort to honor the voters’ wishes, convinced Chairwoman Lea Márquez Peterson and Commissioner Jim O’Connor to reject the rules changes that would have driven up consumers costs.

According to Olson, the most recent analysis estimated the mandates contained in the rules would have increased the revenue requirement of Arizona Public Service Company (APS) by nearly $4 billion and Tucson Electric Power’s (TEP) revenue requirement by $1.13 billion. These additional costs would be passed on to their ratepayers.

Arizona voters rejected Proposition 127, with 68.2% voting No.

“When I ran for the Commission, I promised to pursue policies that will lead to the lowest rates possible while still maintaining safe and reliable services. I have sought to honor this pledge with each of my votes at the Commission and today’s vote was no exception. I proudly voted to respect the will of the voters and to protect the ratepayers from unwanted rate increases,” said Olson.
The two Democrats on the Commission, Sandra Kennedy and Anna Tovar, voted for the mandates in spite of the increased costs that would have been passed on to Arizonans.

“Green energy is the Pied Piper’s call for today’s elected Democrats, no matter the cost.” remarked one Corporation Commission observer, who noted “What is lost on most is that because the utility companies are guaranteed a minimum profit margin, increasing the costs to everyday Arizonans would also make the utility companies greater profits, which put the two Democrats on the same side as APS, SRP, and the rest.”

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