News Release
ACC Files Request for Rehearing of Federal Energy Regulatory Commission Transmission Order No. 1920
Phoenix, Ariz. – The Arizona Corporation Commission voted 4 – 1, with Commissioner Anna Tovar dissenting, on June 11, 2024 to approve a “Request for Rehearing” which was filed with the Federal Energy Regulatory Commission (FERC) on Wednesday, June 12, 2024. The request for rehearing is regarding FERC Order No. 1920, entitled “Building the Future Through Electric Regional Transmission Planning and Cost Allocation” issued on May 13, 2024. The Arizona Corporation Commission took this step to address concerns of the impact of this order on Arizona ratepayers, and its impact on the Commission’s constitutional mandate to set just and reasonable rates.
ACC believes Order No. 1920 goes far beyond FERC’s authority and amounts to a federalization of the intra and interstate transmission grid and production. Order No. 1920’s provisions do not respect the traditional roles of the states in the siting and cost allocation process and are unlawful and unreasonable. On rehearing, FERC should address the need for state agreement and consensus on planning and cost allocation issues.
Chairman Jim O’Connor said of FERC Order No. 1920: “Arizona’s Constitution imbued powers to the Corporation Commission with respect to grid reliability and rate making that must consider cost. The FERC’s Order 1920 would override our constitutional powers, putting Arizonans at risk of unjust and unreasonable cost allocations imposed by the federal government. I hope the FERC grants the petition for rehearing and scales back the overreach in its unauthorized power grab to implement the Green New Deal”.
Commissioner Lea Marquez Peterson stated: “The Arizona Corporation Commission has Constitutional authority which may be impacted by FERC Order 1920. The resulting process may require cost allocation for transmission projects which would provide no quantitative benefits to Arizona. Transmission Costs are determined by FERC and passed through to Arizona ratepayers. I supported this request for rehearing to protect Arizona ratepayers from subsidizing special interest groups’ desired transmission projects which may not benefit them.”
"My focus is to ensure excessive costs aren't thrust upon Arizona ratepayers to pay for transmission projects that would not directly benefit our state," said Commissioner Kevin Thompson. "Arizona and the West require additional generation sources and transmission capability to meet the needs of our bright future. But we must preserve our right to have a say in projects built within our borders and protect Arizonans from projects that attempt to stick us with an expensive bill when there's little benefit to our grid."
“FERC is greatly overstepping its authority with this order and attempting to usurp state authority,” said Commissioner Nick Myers. “Transmission planning is a very complex process that has traditionally been left up to the local utilities and the regions in which they serve. This action by FERC is an attempt by the federal government to force its Green initiative across the nation and is a wholly unacceptable overreach in my opinion.”
To view the petition for rehearing, go to the Commission’s Online docket at edocket.azcc.gov and enter docket number E-00000A-24-0112.