Commissioners Call on Governor to Support San Carlos Irrigation Project Ratepayers
In a recent development, four Arizona Corporation Commissioners have addressed a pressing issue facing the customers of the San Carlos Irrigation Project (SCIP). The federally-run SCIP has left its customers reeling from significant price increases in their monthly utility bills, thanks to the federal government's struggle to purchase power on the open market at a reasonable cost. The Arizona Corporation Commission and the State of Arizona have no regulatory authority over SCIP, leaving around 10,000 customers in Central Arizona, including approximately 80% residing on non-tribal lands, at the mercy of these price hikes.
Commissioner Thompson took the lead in a letter dated October 11th, co-signed by Commissioners Márquez Peterson, Myers, and Chairman O’Connor. The letter highlighted past efforts to divest SCIP from federal control, specifically noting the 1991 San Carlos Indian Irrigation Project Divestiture Act, introduced by former Congressman Jim Kolbe and later signed into law in December 1991. However, the promised divestiture and release of SCIP customers from federal authority remained unfulfilled.
The Commissioners, recognizing the need for a solution responsive to the needs of Arizonans, urged Governor Hobbs to renew discussions with federal partners, potentially exploring divestiture as a means of securing better prospects for SCIP customers. They stressed the importance of accountability to the local community, considering the significance of SCIP in Central Arizona.
Furthermore, the letter contained a call for the Governor to investigate interim financial protections that the State of Arizona could offer SCIP customers. This would serve as a safety net and shield vulnerable ratepayers who have been most severely impacted by the recent abrupt rate increases. One suggestion was to tap into the approximately $13 million in "grid resilience formula" grants recently allocated by the federal government to Arizona. These funds could play a crucial role in shoring up SCIP's infrastructure, ensuring a more reliable service for its customers.
Additionally, the Commissioners pointed out that while Arizona utilities had previously reassured the Governor that customers wouldn't risk losing electricity service due to financial hardships or non-payment during the sweltering summer months, SCIP customers did not benefit from similar federal protections. This discrepancy raised concerns, as SCIP customers are potentially exposed to disruptions once high temperatures return.
The Arizona Corporation Commission has taken measures to protect Arizona customers of utilities under its purview, guaranteeing that power will not be disconnected during the hottest parts of summer to safeguard vulnerable consumers. Yet, SCIP customers lack these same assurances, prompting the Commissioners to stress the urgency of federal guarantees for the protection of vulnerable SCIP customers.
In conclusion, the four Corporation Commissioners' letter to Governor Hobbs highlights the challenges faced by SCIP ratepayers due to soaring utility bills and the limitations of federal control. Their appeal for renewed collaborative efforts, potential divestiture, and financial protections is not only a call to action but also a demonstration of their commitment to the well-being of Arizona residents. As these discussions evolve, the hope is to find a balanced solution that both preserves the reliability of SCIP's services and ensures the responsible transition of the community to a more secure and affordable energy future.