AFP-Arizona supports deregulation of Arizona’s electrical markets

August 19, 2013

The Arizona chapter of Americans for Prosperity favors full deregulation of electrical generation, transmission and consumption.  Ideally, all portions of the grid should be deeded back to the companies that built them (understanding that those companies did receive heavy subsidies and risk abatement for their investors), with ratepayers of record granted shares in the companies.   The only remaining regulatory functions of the Arizona Corporation Commission being to: 1) guarantee that all public rights of way should be opened to as many carriers as can safely share those spaces; and, 2) strike down all governmental barriers to independent (off-grid) generation (including peaker plants, bloom boxes, etc).  However, as an intermediate step, AFP-Arizona supports the Goldwater Institute’s proposal for an open access deregulation model along the lines of what has been created in Texas, provided that there is adequate compensation for stranded costs.  For better or worse, open access focuses the political game on transmission, so free-market activists will have to remain vigilant with regard to rent-seeker stakeholders (the solar industry is the obvious one, but to some extent, every stakeholder is under suspicion) constantly trying to game grid access rights and/or the rate structure in order to obtain subsidies from ratepayers and/or taxpayers.

For Liberty, Tom

Tom Jenney
Arizona Director
Americans for Prosperity

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