In a move that's sure to stir debate among Arizonans, Commissioner Rachel Walden made the decision to roll back Energy Efficiency (EE) and Demand Side Management (DSM) Rules at the Arizona Corporation Commission's Open Meeting last Wednesday. Walden, pointing to concerns over cost and economic equity, stated emphatically her reasons for repealing the decade-old mandates which expired five years ago. "I fully support the use of EE mechanisms and DSM programs, which have demonstrated energy savings especially during peak summer heating days when our energy needs have stressed the electrical grid," Commissioner Walden said, according to the statement on the Arizona Corporation Commission website. She further criticized the rules for failing "to contain any other ratepayer protection requirements" and argued that these programs have unfairly burdened a majority with costs in support of a few.
Nevertheless, Arizona hopes to still keep moving forward with energy efficiency and management despite the recent regulatory rollbacks. Walden, who seems fully intent to continue to scrutinize the cost-effectiveness of such initiatives, indicates that utilities remain compelled "to use All-Source Requests for Proposals" in planning for their energy futures. In fact, Walden voiced support for a recent "Bring Your Own Device DSM program for APS customers that did not create a cost shift," which was accepted by the Commission, as noted on the Arizona Corporation Commission website. Thus, the narrative is not one of closing doors but rather of carefully opening them to cost-effective energy solutions that can potentially benefit all elements of the state's populace.
The discussion over the balance between economic feasibility and environmental responsibility is far from over in Arizona. However, another significant decision by Commissioner Walden was the rejection of a low-income customer-owned Yard Line replacement program proposed by Southwest Gas. Citing a "lack of consumer protections and guardrails," Walden demonstrated a consistent approach in her oversight duties. She encouraged Southwest Gas "to re-propose a program in a future rate case application that contains thoughtful ratepayer protections and adequate data for the Commission’s consideration," as reported on the Arizona Corporation Commission website. The clear message sent by her votes is that while innovation in energy services is encouraged, it cannot proceed without robust protection for consumers and comprehensive data to support its implementation.
