HB2679 (power; public utilities; UCC; securities) grants sweeping new authority to utilities with no assurance of sufficient oversight or public policy review being conducted by the Arizona Corporation Commission – the implementing agency for regulated utilities -- or by the SRP Board. HB2679 would authorize utilities to issue bonds to pay for debt for a coal plant and then sell the plant. Most programs like the one being proposed require retirement of the plant and have some kind of sunset. The bill also uses a skewed cost-effectiveness test that advantages coal and gas over clean renewable energy.
HB2679 would allow the utilities to use this bonding mechanism on a broad range of assets and even on unrecovered fuel costs and purchased power. In committee, when asked what it could not be used on, an APS attorney could think of nothing.
HB2679 is too broadly written without sufficient checks and balances and there are too many unanswered questions about how it could be used and how it would affect future ratepayers.
The last thing we need in Arizona are monopoly utilities that are less accountable. Tell your Senator to vote NO on HB2679!
