Grand Canyon Times

This week, the Arizona Corporation Commission announced its approval of an amended Policy Statement Regarding Formula Rates. The decision, which introduces a shift in utility rate-making processes, has drawn criticism from the Arizona Free Enterprise Club, an advocacy group for ratepayer protections.

In a statement, the Arizona Free Enterprise Club criticized the policy as a rushed effort that prioritizes utility interests over consumer protection. "Following contentious double-digit rate hikes being approved and ESG Resource Plans committed to going ‘Net Zero’ by 2050 being rubber-stamped, the Commission has rushed through approving new rules masquerading as a mere ‘policy statement,’" the group stated. 

According to the Club, the policy could shift financial risks from utility investors to ratepayers by implementing formula-based rates and enabling automatic rate increases with limited transparency or input from the public.

“The only support for this ‘policy statement’ came from the utilities themselves. The Commission is charged to protect ratepayers by regulating the utilities, not the other way around. The Commission should pump the brakes, not rush through major rulemaking decisions in a lame-duck session.”

In addition to its critique of the policy's process and implications, the group reiterated its broader mission of safeguarding affordable and reliable energy for Arizonans. "We will continue to work to ensure utilities will not be able to force their captive ratepayers to foot the bill, especially through automatic rate hikes, for their costly goal to go ‘Net Zero’ by 2050," the Club stated, highlighting concerns about the financial burden of transitioning to renewable energy sources like wind, solar, and battery storage.

The approval of the Policy Statement marks a significant development in Arizona's energy landscape, sparking ongoing debates about the balance between achieving sustainability goals and protecting consumer interests.

The Arizona Free Enterprise Club is a nonprofit organization focused on promoting free-market policies, limited government, and economic freedom in Arizona. Established in 2005, the group advocates for policies that reduce taxes, limit government spending, and enhance individual liberties. It engages in lobbying, grassroots campaigns, and public education to influence policy and elections within the state. The organization is known for its work on issues such as tax reform, school choice, and opposing government regulations it views as overreaching.