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Retail Electric Choice in Arizona: Take Action Now

Retail Electric Choice in Arizona: Take Action Now

In the late 1990’s, Arizona initiated retail choice in each of the three utility territories of Arizona Public Service (APS), Tucson Electric Power (TEP), and Salt River Project (SRP). However, retail competition was suspended in the aftermath of the California energy crisis.

In May 2013, the Arizona Corporation Commission (ACC) initiated a process to determine whether retail competition should resume in Arizona. Interested parties have submitted comments in response to specific questions posed by the ACC staff on the pros and cons of retail choice.

In September or October 2013, the ACC will hold an Open Commission Meeting to vote on whether to resume retail choice. If the ACC’s decision is to move forward, stakeholders will be allowed to engage with ACC staff  to develop the market rules that will govern the reopening of retail choice.

What are some of the benefits of retail competition?

Due to the competitive nature of an open market, retail electric suppliers that provide products and services in restructured markets are incented to be efficient and innovative in providing service to their customers. This is why competitive retail electric markets often offer lower prices and a variety of products for its consumers. Well designed competitive markets put downward pressure on prices, and thus deliver better results than traditional monopoly service.

How can you show support for retail competition?

In an effort to spread the word about electric competition, Arizonans for Electric Choice and Competition (AECC) launched a website with links to educational resources and relevant news articles. To take action by adding your name to the AECC’s list of public supporters, please visit www.azelectricity.com.

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