Arizona Corporation Commissioner requests financial relief package from Arizona Public Service Company

Published on September 03, 2020 by Chris Galford

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As people struggle in the face of COVID-19 and seasonal weather demands, Arizona Corporation Commissioner Lea Márquez Peterson called on the Arizona Public Service Company (APS) to provide financial relief while considering a $51.928 million energy efficiency budget.

Márquez Peterson views that budget as an opportunity since the Commission will be reviewing it this September. In a letter issued this week, she called on APS to pump nearly all of its budget into residential customer programs, including limited-income home weatherization, SEER-Rated HVAC Qualify Systems, and programmable thermostats or smart thermostats.

“These are unusual times, with many people working and learning from home,” Márquez Peterson said. “A new approach to energy efficiency measures that provides the greatest amount of financial relief to customers in need may be necessary this year.”

The commissioner has been previously critical of surcharges to fund energy efficiency programs. In May, she proposed the temporary suspension of APS’s Demand Side Management surcharge to provide as much financial relief as possible to its customers. The latest budget is likewise funded by surcharges that have been collected since January 2020.

In her letter, Márquez Peterson also asked APS to answer how many families would be eligible for each customer program, the number currently served, and the geographic diversity of those participating. Beyond this, she requested a cost/benefit analysis of the APS proposal to guarantee more energy savings during peak hours than are being spent on programs.

According to the Southwest Energy Efficiency Project (SWEEP), energy efficiency investments in Arizona have helped on two fronts: reducing electricity use by 22 percent and offering an economic boost of $3.7 billion. This has been particularly helpful for rural, low-income, and elderly households, which, according to the U.S. Department of Energy, weatherization programs and similar opportunities have helped save these households $283 per year on average.

“We need to provide as much relief as possible, especially as families are facing so many financial challenges during COVID-19. This new approach to energy efficiency will provide a greater return on investment for Arizona families who have already paid into this program,” Márquez Peterson said.