Arizona Corporation Commission: Renewable energy is key issue for candidates

Nov 18 - Arizona Daily Star

Nine candidates are vying for three seats on the Arizona Corporation Commission in a race that will affect the state's energy policy - including the pace of renewable-energy development - in Arizona for years to come.

Three incumbents - Republican Bob Stump and Democrats Paul Newman and Sandra Kennedy - are seeking second four-year terms on the five- member commission.

Two Republicans - former Senate President Bob Burns and cable- industry executive Susan Bitter Smith - join Stump on the GOP ticket. First-time candidate Marcia Busching rounds out the Democratic ticket.

Also on the ballot are Libertarian Party candidate Christopher Gohl and Green Party candidates Daniel Pout and Thomas Meadows.

The top three vote-getters will win seats.

The constitutionally-created Corporation Commission regulates utility rates and services, Arizona corporations, securities brokers and dealers and railroad and pipeline safety.

Each candidate has pledged to balance the need for reasonable utility rates with fair returns to keep utilities healthy.

But renewable energy has become a major issue since an all- Republican commission mandated in 2005 that investor-owned utilities, including Tucson Electric Power Co., generate at least 15 percent of retail power from renewable sources like solar and wind by 2025.

Candidates from both major parties say they're pleased with the progress of renewable-energy development in the state.

But Newman - a Tucson resident and the only current commissioner from outside the Phoenix area - said the standard should be increased. He cited a 2011 survey conducted for Arizona Public Service Co. that showed 94 percent of Arizonans favor more solar energy.

"There's not just enough to go around, not enough to keep the Arizona solar energy industry strong," said Newman, noting that states like California and Colorado have higher standards.

The Democrats' solar message resonated with voters in 2008, when Newman and Kennedy ran as "the Solar Team" with Sam George and became the first two Democrats to sit on the Corporation Commission since 1999.

Kennedy says she's been forced to "defend" the current renewables standard, noting that the commission's Republican majority has cut incentive levels for residential rooftop installations, slashed funding for solar-energy research and counted a trash-burning plant as a renewable energy source.

"This effort should continue, not be scrapped or chipped away," she said.

Busching, an attorney and former Arizona Citizens Clean Election Commission member who has solar on her home, said she generally supports more solar but would withhold judgment on boosting the standard until hearing from stakeholders.

The Republican candidates say the current renewable-energy standard is sufficient, and increasing the requirement would be too costly for ratepayers.

Stump said he's proud of Arizona's solar progress, noting that a recent study ranked Arizona second among the states for installed solar capacity as of the second quarter of 2012.

He defended the incentive cutbacks as a prudent move to protect ratepayers.

"We recognize that if incentives are too high, there's less of the pie to go around, the money dries up and installers go out of business," Stump said.

Burns and Bitter Smith agreed the renewable-energy standard is at the right level for now.

Burns says his top priority is boosting Arizona's economy, and he would oppose any moves that would raise costs for ratepayers.

"We need to take advantage of all of the sources of energy out there, all of the sources of fuel, and not pit one against another ... to make Arizona one of the most attractive places to do business," he said.

The Green Party candidates advocate transitioning completely away from fossil fuels and nuclear to renewables. The Greens' Meadows says nuclear power "creates more environmental issues than it helps."

Libertarian Gohl could not be reached for comment and did not respond to a Star election questionnaire.

Bitter Smith, a member of the Central Arizona Water Conservation District Board from 1999 to 2010, said one of her major priorities will be to reform regulation of water companies.

Because of the high cost of filing full rate cases, many water companies delay filings, resulting in requests for big increases, she noted.

Bitter Smith said she favors mechanisms adopted by some states allowing water companies to collect special surcharges between major rate cases to help replace aging systems.

"It is a reform process that has to happen ... it needs a champion," said Bitter Smith.

For her part, Busching acknowledges she has much to learn but says her experience as an attorney, former business owner and mediator will help her balance the interests of utilities and ratepayers.

Originally published by ARIZONA DAILY STAR.