Utility Bill Relief? Not in Sight!

On February 11, the Senate Natural Resources Committee took significant action against energy competition in Arizona by removing vital provisions from SB1501. Led by Chairman Sen. T.J. Shope and influenced by lobbyists from SRP, the committee effectively halted a legislative measure that could have reduced household utility bills. Shope’s declaration, “Not on my watch,” indicated a formidable resistance to change.

This decision will have lasting consequences for consumers in Arizona. The absence of regulated energy competition by the Arizona Corporation Commission means residents continue to face relentless rate hikes without the option to shop around for better pricing. Major energy suppliers are eager to enter Arizona’s market, which could drive down prices and foster local economic growth through diversified energy sources.

The actions of the Natural Resources Committee appear to overlook fundamental consumer protections championed since the time of Ronald Reagan. In his famous 1983 radio address, Reagan warned against the consequences of government regulations on energy prices. He argued that deregulation would facilitate more competitive pricing, and historical evidence has often supported these claims.

Despite the potential for reduced utility rates, the Senate hearing was preempted by utility companies prepared to deploy their experts to instill fear about the results of increased competition. However, repeated studies have discredited these alarmist claims. Even lacking a doctoral degree, many citizens recognize that competition leads to lower prices and better services.

Comparative negotiation positions also reveal disparities in power dynamics within the state’s energy system. For instance, while Tucson’s mayor earns a modest salary, the CEO of Tucson Electric Power climbs the ranks with significant earnings. This disparity raises questions about how decisions are made regarding electricity costs, especially given that the utility’s profits have surged as customer costs rise.

At a time when Arizonans grapple with utility bills that rival housing costs, the committee’s responsibility should be to advocate for the public. With rising temperatures and record profits for monopoly utilities, residents deserve support rather than dismissal.

Senator Shope must reconsider his stance and support equitable energy pricing for all Arizonans. The voices of the citizens should matter in shaping energy policy.

Rick Rappaport is a resident of Oro Valley.