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Arizona Corporation Commission

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The Arizona Corporation Commission is the Public Utilities Commission of the State of Arizona, established by Article 15 of the Arizona Constitution. Arizona is one of only fourteen states with elected commissioners.[1] The Arizona Constitution explicitly calls for an elected commission, as opposed to a governor-appointed commission, which is the standard in most states,[2] because its drafters feared that governors would appoint industry-friendly officials.[3] They are directly elected statewide and serve staggered four-year terms. Due to its separation from the executive branch, the commission is often referred to as the "fourth branch of government."[4][5][6] The characterization of the Commission as the "fourth branch of government" is contradicted, however, by Article III of the Arizona Constitution, which provides that "[t]he powers of the government of the state of Arizona shall be divided into three separate departments, the legislative, the executive, and the judicial".[7]

The commission has five members. As of January 2021, the commissioners are Sandra Kennedy, Lea Márquez Peterson, Jim O'Connor, Anna Tovar and Justin Olson.[8]

Responsibilities and duties

The commission's scope of responsibility is generally larger than most commissions in other states. Some of its major duties include regulating public utility companies, regulating the incorporation of businesses and organizations, securities regulation, and railroad/pipeline safety.

In January 2018, Former Speaker of the Arizona House of Representatives and Commissioner Andy Tobin proposed an energy plan that includes an 80 percent clean energy target and a 3,000 MW energy storage procurement target, which would surpass California and New York.[9][10][11][12][13][14]

Leadership

The current Chairperson of the Arizona Corporation Commission is Lea Márquez Peterson.

Prior to January 5, 2016, the chairman was Susan Bitter Smith. She joined the commission in 2013.[15]

As of 2015, the Arizona Attorney General’s office began investigating a complaint that seeks to have Bitter Smith removed from her position due to conflict-of-interest issues. As chair of the commission, Bitter Smith is in charge of regulating the telecommunications industry. However, at the same time, she was a lobbyist for the industry,[16] running her own public relations firm called Technical Solutions. Until recently, the company described itself on its website as a “full service government affairs company including direct federal, state and local lobbying activities with agencies ranging from the Federal Communications Commission, to the Arizona Corporation Commission, to the Arizona Legislature and Arizona municipalities.”[15] The description from Technical Solution's website was removed after the Arizona Attorney General began investigating the complaint against her.[15]

An attorney with the Arizona Corporation Commission, Eric Hill, quit his position in June 2016 and began a new job representing rooftop solar companies such as SolarCity at the Scottsdale, Arizona-based Rose Law Group. The law firm represented solar companies in legal battles between solar companies and the Arizona Public Services Company (APS), which is the largest and oldest electric company in Arizona.[17][18] The legal battles were about net metering; the two sides argued over how much electric rates should be and how much refunds should be to homeowners running rooftop solar panels.[17]

Hearing Division

The Hearing Division, under the supervision of the Chief Hearing Officer, conducts evidentiary hearings and issues recommended orders for the Commissioners' consideration and approval. Chief Hearing Officers, since creation of the position, have been:

  • 1974–1975: Lawrence J. Evans, Jr.
  • 1975–1979: Andrew Wilson Bettwy
  • 1979–1981: David Kennedy
  • 1982–1987: Thomas Mumaw
  • 1987–1992: Beth Ann Burns
  • 1992–2000: Jerry Rudibaugh
  • 2000–?: Jane Rodda (Acting)
  • 2009–2015: Lyn Farmer
  • 2015–present: Dwight Nodes

Regulation of public utilities

As part of its role in regulating public utilities, the Commission established a Renewable Energy Standard and Tariff (REST)[19] in 2006. To provide public information related to implementation of the REST, the Commission together with the regulated electric utilities in Arizona have developed a website called Arizona Goes Solar.[20] The authority for the Commission to establish a renewable energy standard has been challenged several times in court by the Goldwater Institute (see Miller v. Arizona Corporation Commission). The standard was most recently upheld by the Arizona Court of Appeals in April 2011.[21]

Current commissioners

Current Corporation Commissioners as of 2021 are Lea Márquez Peterson (R)
(Chair), Anna Tovar (D), Jim O’Connor (R), Justin Olson (R), and Sandra Kennedy (D).[22]

Lea Marquez Peterson in a crowd
Commissioner Lea Márquez Peterson
(R)
Anna Tovar
Commissioner Anna Tovar
(D)
Justin Olson smiling
Commissioner Justin Olson
(R)
Commissioner Jim O’Connor
(R)
Commissioner Sandra Kennedy
(D)

See also

References

  1. ^ "National Association of Regulatory Utility Commissioners:". www.naruc.gov. Retrieved January 10, 2016.
  2. ^ "Background and Organization". Arizona Corporation Commission. May 2, 2008. Archived from the original on May 2, 2008. Retrieved October 27, 2020.
  3. ^ McClory, Toni; McClory, Thomas (December 11, 2010). "Arizona's Executive Branch" (PDF). Toni McClory. Archived (PDF) from the original on October 27, 2020. Retrieved October 27, 2020.
  4. ^ "Arizona Corporation Commission's Ethics Committee Has Ethical Issues". Arizona Daily Independent. September 5, 2017. Retrieved January 22, 2020.
  5. ^ Richardson, Emily (October 11, 2018). "Corporation Commission candidates discuss what they would bring to the office". chamberbusinessnews.com. Retrieved January 22, 2020.
  6. ^ "Arizona Corporation Commission v. Superior Court". law.justia.com. Retrieved January 22, 2020.
  7. ^ Ariz. Const. Art. III; see also, Johnson Utilities, LLC v. Arizona Corporation Commission, 468 P.3d 1176, 1195 (Ariz. 2020) (Bollick, J., concurring and dissenting).
  8. ^ "Arizona Corporation Commission". Retrieved October 20, 2015.
  9. ^ "Arizona regulator proposes 80% clean energy mandate, 3 GW storage target". Utility Dive. Retrieved February 14, 2020.
  10. ^ "Commissioner Tobin Proposes Comprehensive Energy Reform". NARUC. Retrieved February 14, 2020.
  11. ^ "Arizona commissioner prepares to file 80% clean energy rule". Utility Dive. Retrieved February 14, 2020.
  12. ^ "Arizona regulator wants to adopt 80% clean energy plan before gas moratorium ends". Utility Dive. Retrieved February 14, 2020.
  13. ^ "Arizona regulator seeks efficient path for 80% clean energy rule". Utility Dive. Retrieved February 14, 2020.
  14. ^ Spector, Julian (January 30, 2018). "Arizona Regulator Proposes Biggest Storage and Clean Energy Target Yet". www.greentechmedia.com. Retrieved February 14, 2020.
  15. ^ a b c "Roberts: Susan Bitter Smith should resign". azcentral. Retrieved November 4, 2015.
  16. ^ Randazzo, Ryan (September 19, 2015). "Utility regulator Susan Bitter Smith no stranger to conflict". The Arizona Republic. Retrieved October 20, 2015.
  17. ^ a b "ACC attorney jumps to law firm representing SolarCity, rooftop interests battling APS". Phoenix Business Journal. June 13, 2016. Retrieved June 26, 2016.
  18. ^ "Arizona Public Service Electric—About us". Arizona Public Services Company. Archived from the original on June 4, 2019. Retrieved December 10, 2020.
  19. ^ "Renewable Energy Standard and Tariff". Arizona Corporation Commission. March 4, 2015. Archived from the original on July 23, 2012. Retrieved December 10, 2020.
  20. ^ "Solar Energy for Arizona". Arizonagoessolar.org. Retrieved March 18, 2015.
  21. ^ Randazzo, Ryan (April 7, 2011). "Appeals Court upholds rule on renewable energy". Azcentral.com. Retrieved March 18, 2015.
  22. ^ "ACC Home Page". Arizona Corporation Commission. May 2, 2008. Archived from the original on May 2, 2008. Retrieved October 27, 2020.
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