Why are you the best candidate?
I have qualifications unique among all the other candidates and critical in addressing the issues presently existing with the Arizona Corporation Commission. In December 2015, I retired as a Superior Court Judge completing a 36-year career as a trial attorney, an Assistant Arizona Attorney General and Judge. Additionally, I have served in public office including being Mayor of Chandler and President of the Arizona League of Cities and Towns. I am running for this office because I want to continue serving the State of Arizona and its citizens and return the Commission back to its core of rendering decisions based upon the evidentiary record, not what is written in a media campaign. Having served as a judge, an assistant attorney general and as mayor of the state’s 4th largest city, I have experience unlike any other candidate in this race. The Commission is a quasi-judicial body and, as mentioned above, should decide cases based on the record, just like I did in my courtroom.
What are your thoughts on “demand rates” for residential customers, which base a portion of the bill on the highest one hour or half hour of use during the month? Could they offer any benefits to the grid? Do you think residential customers could learn to manage them?
“Demand charges” as defined by the question have existed for businesses yet have not been a part of the utility bill for residential customers. The concept has been presented to the Arizona Corporation Commission in present rate cases by more than one utility and it would be inappropriate for me as a candidate to discuss the concept until I have the opportunity as a Commissioner to fully hear arguments and review the facts presented in order to decide if such a concept is warranted and whether the residential consumer would be able to properly manage such a change.
Should independent expenditure committees be required to disclose more about their donors and donations? If so, how specifically would you do that? If not, why don’t you think more disclosure is warranted of “dark money” donations to Arizona political campaigns?
Any opinion on this subject must reflect the current legal status. The laws regarding independent expenditures and disclosure in Arizona have been clarified by the U.S. Supreme Court and recently by the Arizona Legislature. The U.S. Supreme Court in 2010 decision determined that independent expenditures furthered by corporations and charitable organizations are protected as a form of political free speech. Nonetheless, Justice Anthony Kennedy sated in the decision that the states were still free to determine whether the reporting of contributions and the disclosure of donors should legally occur in their respective jurisdictions. States have handled the issue of transparency or disclosure of donors differently. The Arizona legislature clarified the issue in 2016 with the passage of Senate Bill 1516 which specifically prohibits the disclosure of the donors of such independent contributions committees. The Governor signed the legislature that recently became the law in our state.
How do you feel about utilities participating in and funding political action groups that might buy advertising related to corporation commission races?
Even though the law allows such independent expenditures, some utilities have voluntarily agreed to not contribute to the political campaigns of candidates. A candidate has no control over independent expenditures and by law cannot have any knowledge or involvement with such contributions. My approach has been to inform the utilities as well as the solar advocates, that in the same manner with cases occurring in my courtroom as a judge, I will remain impartial and base my decisions in the matters presented before the Commission solely by the facts presented and on the evidentiary record presented.
Do you support or oppose the requirement that electric utilities must generate at least 15 percent of their power from renewable sources by 2025? Do you believe the “carve out” for distributed generation, or rooftop solar, is warranted?
The Arizona Renewable Energy Standard (RES) requires regulated utilities and electric co-ops to obtain 15% of their power from renewable sources by 2025. Even though such renewable energy represents solar, in 2011 renewable energy was expanded to include trash-to-gas power. As Mayor of Chandler I worked with SRP in creating a partnership in utilizing the methane gas generated from our closed land-fill to produce electricity for homes. Electricity was produced from trash. It appears that we are currently on target of what it will take to reach the present target of 15% of renewable generation as a part of the current energy portfolio by the stated deadline.
What is the most pressing energy issue facing the state, and how would you address it as a commissioner?
The most pressing energy issue currently facing the Commission is the resolution of the discord between utilities and the rooftop solar companies. I have met with both sides to encourage settlement between them, but made it known to all that if they are unable to resolve the issue themselves, then they need to bring their best cases before the Commission where the solution will be based solely on the evidentiary record. A study is being completed that details the cost of service and the value of rooftop solar. In the meantime, the utility-scale solar is becoming significantly more cost effective, and the solar companies are diversifying their business portfolio to include more utility-scale projects. Energy technologies are improving and battery storage is advancing which would greatly impact the residential solar issue.
What thoughts do you have on the issue of net metering, where rooftop solar customers receive full retail credit for the excess electricity they send to the power grid?
Net metering involving current rooftop solar consumers have existed for years and the issue is currently coming to the Commission as to review and possible revision. Net metering is one issue out of many that are involved in the future determination of the balancing of costs and benefits of rooftop solar in Arizona. The existing net energy metering credit existing for current rooftop solar customers should be grandfathered. Otherwise, if the parties are unable to resolve the future of rooftop solar, I have made it clear that all interested parties shall be given the opportunity of presenting their cases before an impartial Commission, as a quasi-judicial body, without pre-existing conflicts, whereby decisions shall be based solely on the facts presented and the evidentiary record, as mandated and defined by the Arizona Constitution.
What are your thoughts on deregulating Arizona’s electricity market? Should Arizona allow electricity providers to compete for business and residential customer business? What risks and what benefits do you see in such a plan?
While I never want to close the door on a free market, electricity regulation is one that could be ripe with peril if deregulated. This could be especially true for the rural areas of Arizona where the production of power by electrical cooperatives is more expensive and often supported by federal loans. I am concerned that the deregulation of the retail market would have a significant negative impact on rural communities who face greater expense in providing reliable and affordable electricity for their customers.
Several nuclear facilities around the country are scheduled to close in the coming years. Do you believe the Palo Verde Nuclear Generating Station in Arizona should remain open?
Palo Verde Nuclear Generating Station has successfully provided a source of safe and reliable energy for years and sets national standards in doing so. Nuclear energy represents a valuable part of the diversity of energy sources in our state. We must continue to provide to the customer reliable and affordable energy from all our existing sources in Arizona, including nuclear, as well as geothermal, hydroelectric, coal, natural gas, solar and wind, while constantly seeking energy efficiency.
What is the future of Arizona’s energy sector, and what should the commission do to help bring it about?
Arizona must continue to provide power from the diversified sources as discussed above including promoting new technologies and more efficient energy delivery. Such diversity ranges from traditional coal to the development of solar energy especially with the coming of battery storage. I support the legislation being furthered by Congressman Paul Gosar that would encourage large-scale renewable energy development on federal lands in Arizona while giving 25% of the revenues produced to the host county generating millions of dollars for economic development. In January 2016, Governor Ducey appointed me to serve on the Commission of the Arizona Power Authority that determines the recipients of Arizona’s share of electricity produced by the Hoover Dam. I was appointed to help address allegations of conflict of interest involving members on the Commission and to oversee the completion of an audit of the organization. We are so blessed with our diversity of existing and developing energy in Arizona and we need to make certain that our future energy sources and the corresponding rates are determined openly, impartially and always for the benefit of the consumer.
How should Arizona prepare for an expected water imbalance as our Colorado River supply dwindles?
Water conservation is a priority for all of Arizona. As Mayor of Chandler we adopted water conservation policies while being able to provide the water demand of Intel FAB plants located in our city manufacturing high tech chips. The water returned from the largest factories in the world was treated and injected into the ground that substantially increased the level of our ground water supply. Additionally, I pursued an opportunity to share in the construction of a multi-million-dollar water treatment facility with the Town of Gilbert that also needed a new facility to handle their population growth. The two cities were able to serve their customers by reducing their respective costs of the water facility and the continuing operation by fifty percent. Chandler’s water rates were some of the lowest of larger cities in Arizona.
What is the most important topic not getting enough attention at the Corporation Commission?
The most pressing energy issue currently facing the Commission is the resolution of the discord between utilities and the rooftop solar companies. I have met with both sides to encourage settlement between them, but made it known to all that if they are unable to resolve the issue themselves, then they need to bring their best cases before the Commission where the solution will be based solely on the evidentiary record. A study is being completed that details the cost of service and the value of rooftop solar. In the meantime, the utility-scale solar is becoming significantly more cost effective, and the solar companies are diversifying their business portfolio to include more utility-scale projects. Energy technologies are improving and battery storage is advancing which would greatly impact the residential solar issue.