APS wants electric energy efficiency to cost more

As an update to my article Arizona Corporation Commission May Ration Electricity, we find, according to a story in the Arizona Republic, that APS is petitioning to raise electric rates. It seems all that efficiency is cutting into their profits. The Arizona Corporation Commission voted last week to require all regulated utilities to reduce energy sales 22 percent by 2020. If APS has their way, we will pay more for less. “We will see a significant increase in the cost of those (efficiency) programs, and obviously, we will have to see customer acceptance,” APS President Don Robinson said. “Crucial to getting any of it to happen is getting a decoupling mechanism in place in the next rate case.”


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  1. Saving the planet, or just the “greening” of APS?  Now I ask you, what company wouldn’t want to get paid more for producing less?  The ACC  mandates massive cuts in electricity usage,   and APS immediately  requests another  rate increase.   So, if  energy efficiency is supposed to save us money, why is it costing more?  The answer:  Decoupling– a regulated corporate welfare scheme that allows electric utilities to recover lost revenue and profits due to decreased  sales volume from  mandated demand reductions, through systematic  rate increases and public funding.  Under decoupling,  utilities are no longer driven by the profit incentive to produce more electricity, since they are guaranteed stable revenue regardless of sales volume.   This makes energy efficiency measures more  palatable and  profitable to utilities, and eliminates the need for  growth in the production and consumption of energy.  Socialized energy,  then,  is the ultimate  objective of  “energy efficiency” programs,  clearly to the advantage of the utilities;  the losers:  ratepayers and taxpayers who assume the cost burden of this boondoggle, burdened by future power  shortages/ blackouts and constricted economies from loss of generating infrastructure.  The ACC is chartered to  provide us with affordable  electricity on demand, but their agenda is becoming clear:  the phasing out of cheap coal generation through “assumed” carbon taxation,  energy conservation,   utilities disincentives  and  costly renewable energy programs.    This is big- time fraud and crony capitalism needing investigation and corrective action.           

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