Study to be given to ACC to develop a customer choice program
PHOENIX and HARRISBURG, Pa. (May 25, 2023) – Retail Energy Supply Association (RESA), the nation’s leading trade association representing competitive retail energy suppliers, filed a motion requesting the Arizona Corporation Commission (ACC) re-open a previous Customer Choice Docket to identify and study critical issues necessary for the ACC to create a customer choice program in Arizona.
The Phoenix area topped the nation in population growth for the fifth consecutive year. This explosive growth is attributed to an unprecedented number of industrial companies, data centers and technology companies relocating to Phoenix, creating extreme energy demands statewide.
“In light of the current realities in the energy market, it is essential to embrace new entrants and capital in Arizona’s energy markets to foster competition across the state,” said Tony Cusati III, Arizona State Chair, on behalf of RESA. “Historically, states that have relied on regulated monopoly service have experienced significantly higher electricity prices than states that have implemented restructuring and embraced competitive retail choice.”
The rapid population and industrial development growth have placed immense pressure on the adequacy of electric resources, necessitating a substantial expansion of generation and transmission infrastructure. Recently, a Memorandum [S1] from SRP, Tepco, AEPCO, and Electrical Districts 2, 3, and 4 were submitted to the ACC on March 22, 2023, seeking approval to extend the CEC deadline for the construction of a second Palo Verde to Pinal West 500kV transmission line, located south of Phoenix. (Reference: ACC Docket No. L-00000B-03-0124)
At the ACC’s Summer Preparedness Meeting held on April 24, 2023, a representative from SRP highlighted the utilities’ unique challenge of managing an unprecedented load growth alongside the ambitious goal of decarbonizing the generation fleet. This situation has presented them with unusual circumstances that require careful attention and strategic planning.
RESA previously participated in ACC Docket No. RE-00000A-18-0405 and is requesting that Docket be re-opened. Should it be approved, any prior Docket participants can elect to rejoin within one month from its reopening.
“Our goal is to form a study committee that would identify key issues and establish the steps, procedures and processes necessary for the ACC to consider those key issues to develop a customer choice program in Arizona,” continued Cusati.
If granted, the group would present a summary of the study results to the Commission by March 1, 2024.
The Retail Energy Supply Association (RESA) is a broad and diverse group of retail energy suppliers who share the common vision that competitive retail electricity and natural gas markets deliver a more efficient, customer-oriented outcome than a regulated utility structure. RESA is devoted to working with all stakeholders to promote vibrant and sustainable competitive retail energy markets for residential and industrial consumers. For more information, visit resausa.org. Follow RESA on LinkedIn, Facebook and Twitter.
The Power Group for RESA