Since Arizona’s adoption of a competitive electric market model, what emphasis has the Commission placed on pollution control measures in Certificates of Environmental Compatibility?
a. What is the most stringent pollution control measure placed on a CEC since Arizona’s adoption of a de-regulated utility model?
There are two power plants that are the most stringent in terms of pollution control: Santan (Case #105) and Arlington Valley II (Case #117). Each have a LAER requirement. Of the two, Santan is probably the most stringent, because of its location within a non-attainment area and proximity to a large number of homes.
b. What is the likelihood that that measure would have been placed on a similar CEC in a vertically integrated utility model?
Extremely high likelihood. In fact, for Santan, even though SRP is considered by some to be in the "competitive" model, because it was not required by the Legislature to divest its power plants, one could argue that SRP is really a vertically integrated utility operating in a "competitive" environment.
13. During Arizona’s period of reliance on the vertically integrated utility model, what amount of excess generating capacity existed in Arizona?
Excess generating capacity existed in Arizona from the late 1980s into the mid-1990s. For an example, TEP installed its Springerville Unit 2 in 1990, but the Commission did not find the last part of it to be used and useful for ratepayers until 1996.
14. Since Arizona’s adoption of a competitive electric market model, what amount of excess generating capacity existed in Arizona?
As the Commission started to consider adopting electric competition in the mid-1990s, the utilities became reluctant to build new generation because of the uncertainty of the amount of load that they would actually be serving and no guarantee that the Commission would allow cost recovery of the power plants.