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.