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ACC hopefuls give opinions on energy standard

By Josh Garvey/Wick Communications
Published: Wednesday, August 27, 2008 11:20 AM CDT
TUCSON - In the upcoming election, three of the five seats on the Arizona Corporation Commission are up for grabs.

Besides having the authority to set utility rates, the commission has created a renewable energy standard that, as it currently stands, will require utility companies to produce 15 percent of their energy by renewable means by 2025.

Kris Mayes, one of the current commissioners and one of the strongest advocates of the standard, contends the standard will help preserve the environment and lower electricity costs over time.

The standard has been a contested issue and is currently the subject of a lawsuit by the Goldwater Institute, which claims the commission overstepped its bounds.


Eight Republicans and four Democrats are vying for the three spots. The Tucson Weekly asked each candidate about their stance on the standard as it exists, and whether they thought it was the place of the government or the marketplace to advocate cleaner energy. Here's what they had to say.

Republicans

€ John Allen: If you read the Constitution and what the job calls for, it calls for watching out for the consumer. If you're going to save the planet (by getting a seat on the) Corporation Commission, I think you're going for the wrong job. ... If you read the citings of the Goldwater Institute's argument, go to the Constitution and then go to the statute, you'll find that, yes, the Corporation Commission is on some pretty thin ice. ... It's very hard for the payers on poorer and fixed incomes to pay for these exotic ways of generating power when there are others available.

€ Rick Fowlkes: I think the market is the best way to promote the (clean-energy) generation portfolio of the power companies. ... The problem with the current portfolio requirements is that they're just going to be too expensive for the ratepayers. The power coming out of the Palo Verde nuclear plant costs about 3 cents a kilowatt hour. If (power company) APS brings in their new solar plant near Gila Bend on budget ... the power coming out of that facility is 18 cents a kilowatt hour. That extra cost is going to be passed on to the ratepayers, and I don't think that's right.

€ Joseph Hobbs: It depends on how you would quantify and classify (government) help. ... In terms of helping with a bully pulpit to promote long-term implementation of renewable sources in the state of Arizona, I'm very much in favor of that. ... In terms of the specific renewable energy standard ... that actually was overarching and very cumbersome, and I'm not in favor of what it put in place, which is a bunch of mandates. Those mandates are going to require all of the ratepayers of Arizona to absorb a series of rate-increase requests that are going to end up costing us hundreds of millions of dollars before it's all through.

€ Marian McClure: I think it's a combination of both (the market, and government involvement). I think you need to incentivize, and next year, I will approach some of my colleagues about incentivizing the market to, in fact, make more of an investment into cleaner fuel, or cleaner electricity. I wouldn't try to change (the renewable energy standard) at all. I don't know that I would have voted for it originally, because I don't like mandates. But let's face facts: If you've got Tucson Electric Power building a power plant, (Salt River Project) doing the same thing and (APS) doing it, those are the three biggest power companies, and I don't know why we would want to do anything differently.

€ Bob Robson: I think it's appropriate for the commission to set goals, but I think you need to review them on an annual basis. The market can change, and technologies can change as well. You need to keep a fixed and steady hand on where you're headed. I'd like to see nuclear be part of the (energy) portfolio. The other thing is, I'm not certain as to how it could be changed, because it's already spurned billions upon billions of dollars in investment in the state. ... I think you need to look at whether the overlying technologies are there, or whether or not you need to prefer more of one category and less of another. ... It should be very fluid, but it should be with the understanding that we're going to move forward with renewables.

€ Bob Stump: I've said publicly on many occasions that I think it was appropriate that the ACC set an aspirational goal of 15 percent to nudge utilities in the right direction. Obviously, the 15 percent will have to be reviewed annually, as it is, by the ACC to ensure that market conditions and the latest technological innovations are in place, to ensure that utilities can meet that 15 percent. I do think government has a role to play in terms of our energy future. ... As I said, the ACC reviews it on an annual basis anyway. That's why I think it's appropriate to see it as an aspirational goal rather than as a mandate that's set in stone.

€ Keith Swapp: The government doesn't need to be involved. Coming from 30 years of working with environmentalists, I know exactly how they think and what they do, and I think the normal, responsible citizen can take and manage a clean environment very, very well. ... You have two scenarios with the renewable energy standard: You have the standard itself, and you have the mandate. What a lot of people don't like is the mandate involved. I'm all for renewable-energy standards, but the mandate, I want to get rid of that. That pulls money out of your and my pocket, and we're going to see if we can get a reversal on that.

€ Barry Wong: I think there's a limited role for the government regarding renewable energy. More specifically, in 2006, when I served on the Corporation Commission, I was one of the key votes that brought in the 15 percent requirement for electric companies to produce renewable energy by 2025. When I served in the Legislature, I was instrumental in advancing a number of tax incentives and tax-credit legislation which passed, and that was the market-based approach to incentivize utility companies to do that with renewables. Some of them did, but it didn't move up fast enough in terms of the adoption of the clean energy. I think (the renewable energy standard is) where government has a role, though limited, to act as a catalyst to push this renewable, clean energy.

Democrats

€ Kara Kelty: The problem with allowing clean energy to be determined by the free market is that we don't put a price tag on tangibles like clean air or clean water; there's no cost that's figured in for how many air pollution days there are in Phoenix. We look at supply and demand in the free-market economy, but we're not looking at a return on investment in the long term, in terms of investing in new technology. I also think it's advantageous to be promoting clean energy to our economic environment, because it promotes new jobs. ... In terms of private utilities, I think that there needs to be incentives for the utilities to make that switch to clean energy.

€ Sandra Kennedy: I think that, at the rate we're going, if government does not play a significant role, I don't believe that the providers would actually do this on their own. I think cases have proven that if they wanted to do it, they could have done it long before now. So I'm absolutely for government intervention, with setting rules, because, sadly, it had to be done that way. I'm glad to see that the ACC has taken that step. ... I would not increase the percentage, because this is something new. We've got to make sure that it's going to work properly, and as we go, we can iron out the kinks. But as far as raising the percentage, I wouldn't do that.

€ Paul Newman: I think that the renewable energy standard that has been in place for a short time is not a pure market vision, but it needs to be there. I totally disagree with the Goldwater Institute's position that it's unconstitutional. I do believe that there needs to be that incentive to make the public utility companies implement the beginning of Arizona (becoming) a net export solar state. I think (the renewable energy portfolio) is a step in the right direction, and what we need to do is keep the feet of the utility companies to the fire and make sure that they implement it ... I'm willing to stay with the standard (as it is) right now, but I want to make sure that the utility companies go in the right direction and implement this standard in a way that will affect rates to a minimal degree.

€ Sam George: He did not respond to e-mails, and attempts to reach him by phone were unsuccessful.

JOSH GARVEY writes for The Tucson Weekly, a Wick Communications Co. newspaper in Tucson. Sierra Vista-based Wick Communications also owns the Herald/Review.

CORPORATION COMMISSION CANDIDATE INFORMATION

So what does the Arizona Corporation Commission do? From the ACC Web site: "By virtue of the Arizona Constitution, the Commissioners function in an Executive capacity, they adopt rules and regulations thereby functioning in a Legislative capacity, and they also act in a Judicial capacity sitting as a tribunal and making decisions in contested matters."

But here's what a voter really needs to know about the ACC: They decide whether utilities can increase rates. And they have some authority to push for alternative energy requirements, which fits in with all that sustainability stuff we hear these days.

Democrats

There are four Democrats running for three commission seats.

Sam George

"I am running for the Corporation Commission to achieve a majority that will move Arizona toward solar power - a solar team. We are facing an energy crisis in our country caused by both climate change and dependency on foreign oil," Sam George says on his campaign Web site. "Arizona and America need to be energy independent. I believe that solar power is the road to energy independence. Unlike other energy sources such as natural gas, solar power involves no fuel costs. The cost of natural gas is skyrocketing along with our gas prices."

George served as deputy director for the Arizona Secretary of State between 1990 and 1994 and is a veteran of campaigns for ballot initiatives. According to his Web site, he helped "write and pass both the Voter Protection Act and Clean Elections." He's also wrote a portion of the "Great Divide," a 2004 book that makes recommendations on America's energy policy.

He has the endorsement of Congresswoman Gabrielle Giffords.

€ WEB SITE: www.solargeorge.com

Sandra Kennedy

If your personal goal for the Corporation Commission is to advocate solar energy as much as humanly possible, Sandra Kennedy seems to match up with that idea.

"Here in Arizona, being in the Southwest, we could probably be the solar capital of the west. When we look at what California has done and what New Mexico has done, we're right in the middle, we're sandwiched," Kennedy says. "I think we need to look at our standards and what we're doing and compare ourselves to the states around us and maybe do just a little bit better. I think when it comes to the reliability issues and the rate issues, people will want to chose whether they do an alternative usage, and I think that should be available not just to individual home owners, but to businesses also."

For the past 13 years, Kennedy has run her own Denny's franchise. She's also served in both houses of the Arizona Legislature, from 1986 to 2000. She sites her experience with the Legislature as a motivating factor in her run for the Corporation Commission.

"I personally feel that my experience in the legislature, and seeing what the current commission has done with the renewable standards, I believe it's a great start, but we can probably do better," Kennedy says.

€ WEB SITE: www.kennedy4az.com/

Kara Kelty

Kara Kelty is another Democrat who is focusing on clean energy in her campaign. From her Web site, Kelty says she has a long history of involvement in environmental causes and serves on the Flagstaff City Council. She's also served in the Peace Corps, and she spent three weeks in Europe studying renewable energy policies with the Marshall Felowship.

Some of the accomplishments during her time on the Flagstaff City Council that she lists include: creation of a sustainability plan for the city of Flagstaff to meet the U.S. Conference of Mayor's Climate Protection Agreement; implementation of International Energy Codes for new construction in Flagstaff; creation of the Community Housing Policy Task Force to increase the availability of homes that families can afford; creation of the Flagstaff's Land Trust Program; helped oversee 10 voter-approved bonds for community improvements totaling $155 million; creation of theOpen Space Commission.

€ WEB SITE: www.karakelty.com/08/

Paul Newman

Paul Newman served in the Arizona House of Representatives from 1993 to 1999, and narrowly lost a bid for the corporation commission 10 years ago. He's also been a county supervisor of Cochise County since 2001, a delegate to the 1996 and 2000 Democratic conventions, a former private defender and current private law office holder and a member of the Democratic Leadership Council.

Newman cites conservation, clean energy, green collar jobs and a sustainable economy as his prime focuses. In addition to his focus on green issues, he's a member of the Conservation Leaders Network, a national conservation body.

"This is a very critical time in addressing climate change. We need people on the corporation commission who can take strong actions to make sure that the climate is protected. My information is that the six candidates running on the Republican side are dubious about climate change. This is no time to be dubious about anything, it's time to take action," Newman says.

€ WEB SITE: www.paulnewmanaz.com

REPUBLICANS

Republicans have an eight-way primary for three positions in the general election.

John Allen

John Allen is running a campaign without a slogan.

"I don't really have one. Vote For Me, I guess? I mean, slogans are kind of '50s, aren't they?"

Despite this daunting strike against his campaign, Allen soldiers on. He is primed and focused on efficiency. He hopes for lower, more efficient energy rates along with a more efficient Corporation as a whole.

"I think there's a need for people who have ratepayers' interest first. And there are a lot of candidates out there, and many of them, their goals are contrary to keeping rates low."

Allen served for four years in the Arizona House of Representatives. He worked for 10 years at America West Airlines, and was a small business owner, buying and selling collectable cars.

€ WEB SITE: www.azallen.com

Rick Fowlkes

Rick Fowlkes, who previously ran unsuccessfully as a Libertarian, believes in the market. At least his campaign stances lead one to assume so.

His top three issues are:

€ To promote competition in the electric power industry

€ To change from a monopoly system to a performance-based rate management system

€ And to modify the current Renewable Energy Standard and Tarriff "to make it more flexible, more utility friendly and more ratepayer friendly."

"I am running because I want to help end the monopoly system for the electric power companies in the state of Arizona; to give the customers more than one choice for their electric service providers; and to let free market competition hold down electric rates," Fowlkes said.

Fowlkes has worked as a structural engineer and president for Fowlkes Enterprises in Mesa since 1983. He has been a structural engineer since 1969, and a registered professional engineer in Arizona since 1977.

€ WEB SITE: www.qualifiedacc.com

Joe Hobbs

Joe Hobbs is running because he thinks he understands the duties better than any other candidate. Hobbs is a senior technical engineer with AT&T. He's also worked at US West Advance Technologies and Bell Communication Research.

"I have seen a tremendous number of issues that have been presented because of general misunderstandings of the underlying technology that many of these regulatory policies have been put in place. It's a little problem that I have witnessed over the past 14 years or so; it appears to be a very major opportunity for subject matter expertise to be brought to bear at the Corporation Commission," he said.

€ WEB SITE: www.qualifiedacc.com

Marian McClure

Rep. Marian McClure hopes to bring her experience in the Arizona House of Representatives to bear on the Arizona Corporation Commission. The eight-year veteran of the House representing District 30, which includes a portion of Cochise County, is a 16-year resident of Arizona who looks to balance the needs of both consumers and power companies.

"What I'm interested in is trying to keep utility rates as low as possible while letting the company achieve a fair profit," McClure says. "It's like one person said, 'If McClure gets elected, I don't think I will lose any sleep over my utility rates.' "

Prior to her time with the House of Representatives, McClure worked in the credit department at Sears Roebuck and Co. for 10 years, and worked for five years at the Omaha National Bank.

After she was informed her husband's military career would be slowed if she continued working, she began volunteering at consumer credit counselors. She also has served on the board of directors for CODAC, and was an adviser to the American Red Cross in Sicily and at Vandenburg Air Force Base.

€ WEB SITE: www.mcclure4az.com

Bob Robson

Rep. Bob Robson is athe speaker pro tempore of the Arizona Legislature and the chair of the rules committee. He was the vice mayor of Chandler, and served eight years on the Chandler City Council. Robson sites low rates as a guiding issue of his campaign, along with an adequate water supply and consistent utility services.

"Basically, I want to be part of the solution to potential problems that may come forward, and I believe I can be of service to the state and citizens by making sure that the services that are provided are provided at a reasonable cost, and there's an abundance of resources for the citizens of the state of Arizona," he said.

Robson has been involved in a ton of charities. Kiwanis, Boys & Girls Club, the Salvation Army and the Auto Theft Authority. He's also owned an insurance agency and a printing company.

€ WEB SITE: www.robson4az.com

Bob Stump

Bob Stump is another current Republican state representative running for the corporation commission. His big three focuses for his campaign are keeping the interests of the rate payer and consumer first, fighting the good fight against security fraud and developing new water and energy infrastructure.

Although it's not mentioned in his top issues, Stump pays some mention to clean energy.

"I hope to put my public policy experience to use by pursuing sensible pragmatic energy and water policies; ensuring that we have the infrastructure in place for our rapidly expanding state; and guaranteeing the fair treatment of Arizona's ratepayers. We need to pursue all avenues of energy production for the sake of energy which is cleaner, more convenient to obtain, and cheaper."

Stump has been in the Arizona House of Representatives since 2002. In his time there, he's been the chair of the House Health Committee, the vice chair of the health and rules committees and a member of the House Water and Agriculture Committee. He's also acted on the Commerce and Military Affairs, Ways and Means, Financial Institutions and insurance and a number of other committees.

He's volunteered with the Alzheimer's Association and Cancer Society's Relay for Life. He's been a small business owner and a journalist.

€ WEB SITE: www.stump4az.com

Keith Swapp

Keith Swapp wants to balance the needs of both consumer and company.

"We need to promote long-term planning and stability to provide the lowest cost water, power and telecom to the ratepayers of the state. Our utilities need to know that the Corporation Commission will work with them to plan properly without using them as a whipping boy for political gain, and our ratepayers need to know that decisions are being made for proper and responsible reasons, not with the next election in mind."

Like Hobbs, Swapp comes from a hands-on background relevant to what the commission does, but with little actual political experience, besides interacting with different U.S. agencies.

As far as experience, he's been in the Navy doing interior communications, which includes "Cubic Corp Aerospace, jamming units all-terrain guidance systems and building NASA space shot computer control modules." He's worked with the U.S. Bureau of Reclamation, the water management organization. He's done geotechnical/materials engineering, which involves working on water project Arizona. He even ran a water company for eight years.

He's been on the Maricopa County Sheriffs' Armed Posse working with Enforcement Support, and he's flown blood for the United Blood Services with a volunteer group called Flights for Life.

€ WEB SITE: www.qualifiedacc.com

Barry Wong

Barry Wong is the only one to mention renewable energy as one of the top three issues in their campaign. He also mentions protecting Arizonans from investment fraud and ensuring quality and reliable water as campaign focuses.

Wong served on the corporation commission previously, acting as the commissioner of the organization in 2006 to finish the term for an empty seat. This experience has impacted his outlook on the commission.

"My 2006 tenure as a commissioner on the Arizona Corporation Commission taught me the great importance the ACC plays in supporting and sustaining the growth of this state through ensuring the sufficiency and reliability of infrastructure for providing essential services such as energy, electric and natural gas, and water. I was fully engaged in every aspect of the ACC's functions and know there is much work to be done."

Wong has run his own law office since 2000. Prior to that, he served for eight years in the Arizona House of Representatives. He is involved in the Arizona Power Plant and Transmission Line Sighting Committee, and has spent time with the University of Arizona Alumni and the Arizona Supreme Court Committee on Character and Fitness.

€ WEB SITE: www.barrywong.com

Biographical information compiled by The Tucson Weekly and the Herald/Review



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