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To the Editor:
In recent weeks, various newspapers throughout the state have printed editorials and letters to the editors concerning the Goldwater Institute’s recent lawsuit against the Arizona Corporation Commission and the State Attorney General questioning the Commission’s authority to enact the Renewable Energy Standard and Tariff (REST) rules.
These editorial pieces have tended to portray the lawsuit as an attack on the merits of renewable energy. However, a careful reading of the Institute’s petition will show that the core issue is whether or not the Commission exceeded its authority in enacting the REST rules.” The thrust of the lawsuit is outlined in the introduction to the petition as follows:
“The Arizona Corporation Commission (ACC) is established under the Arizona Constitution with limited power to regulate utility rates, but over the years it has expanded its powers beyond its constitutional jurisdiction. Last year, ACC adopted sweeping new rules requiring utilities to derive a specified share of its power from alternative sources. The rules rely in part on the voluntary actions of third parties, over whom utilities have no control, and have resulted in rate surcharges to residential and business customers. Last month, ACC approved a surcharge for Arizona Public Service. That surcharge, imposed upon over one million customers (including petitioners) resulted from the rules that are the subject of this special action.
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Regardless of whether the rules constitute sound public policy, ACC has no legitimate power over renewable energy policy, which is a legislative determination. Petitioners seek to enforce the Arizona Constitution’s separation of powers and limit ACC’s authority to ratemaking as defined in the Constitution on behalf of ratepayers and taxpayers who are tangibly harmed by ACC’s actions.”
The lawsuit does not attack the REST rules as bad energy policy, but challenges the validity of the rules on the grounds that the commission lacked authority to enact them.
Mike Gleason
Chairman, Arizona Corporation Commission
