Arizona ratepayers could end up paying more for utilities if state regulators decide to change the ratemaking process.
The Arizona Corporation Commission is set to vote on a proposed policy statement today, which would allow Arizona utilities to move from a historical "test year" model to a formula rate plan. A formula rate plan is used to adjust a utility's base rates outside a general rate case, many times because of increases in the average cost of utility service.
Diane Brown, executive director, Arizona Public Interest Research Group Education Fund, called the proposed change "seismic," and is concerned ratepayers could experience "higher utility bill aftershocks on an annual basis," as a result.
"There appears to be a full-court press to approve a policy statement that essentially upends a long-standing ratemaking process without providing the necessary time and attention to details," Brown contended.
Supporters of formula rate plans said they can help stabilize a utility's rate of return without a full rate case review. Brown argued ratepayers in states using formula rate plans have experienced "higher costs alongside decreased transparency and less opportunities for public engagement." Groups are calling on the commission to grant more time for the decision, to allow experts and consumers a chance to weigh in.
Consumer groups believe the proposed policy statement, which was made public late last month, has been rushed for a vote. Brown argued there is no need to change a system that has worked well, for one lacking specificity, which could usher in unintended effects.
"The commission should slow down the significant shift in ratemaking by addressing questions and requests that stakeholders have presented to commissioners and staff," Brown asserted.
The commission countered stakeholders have had enough time to voice their opinions following workshops held in March and October of this year on the issue, all in an effort to provide Arizonans with reliable service and predictability in utility costs.
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Indiana lawmakers will not study the Bureau of Motor Vehicles' practice of selling driver data this summer but some legislators said the issue deserves more attention.
Sen. Rodney Pol, D-Chesterton, said Hoosiers have no clear way to stop the state from selling their personal information.
"If you want to drive in the state, it's not as if you can go and get your license somewhere else," Pol pointed out. "At the very least, letting people opt out."
The BMV has earned tens of millions of dollars annually from selling information like names, addresses, and vehicle details. Supporters argued the revenue helps fund agency operations but Pol countered lawmakers should at least hold hearings on the practice and consider guardrails.
He worries about what happens after data leaves the state's hands.
"What are the requirements after somebody's information has been turned over or sold to a company? What are the security requirements for that company to hold?" Pol asked. "Because no offense to the towing industry, but I highly doubt that they're a fortress of cybersecurity."
Pol added he and other lawmakers plan to refile legislation next year and continue pushing for bipartisan action on privacy protections.
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Jenkins Enterprises in North Little Rock is one of many small businesses across Arkansas facing extra costs from tariffs issued by President Donald Trump.
The company makes souvenirs, gifts and licensed college merchandise for 150 colleges and universities and employs 70 people.
Steve Jenkins, CEO of the company, said he has been buying manufacturing components from China since 1996 and the up-and-down tariffs are disrupting the workflow.
"If you have a $10 item and you apply a 145% tariff the tariff cost is $14.50, so now my cost is no longer $10, it's $24.50, more than double," Jenkins pointed out. "That gets passed on to the consumer."
Tariffs on Chinese imports dropped from 145% to 30% in May. The lowered tariffs are scheduled to remain in place through August while the U.S. and China negotiate a trade deal.
Retailers place orders with suppliers months in advance to stock their shelves. Jenkins added since manufacturing and shipping costs have increased, customers are hesitant to place orders. He currently has one shipment of toy trucks that's in limbo.
"My cost on that container would have been about $50,000," Jenkins explained. "During that time period, my cost went from $50,000 worth of toys to $135,000. We can't do that. So, depending upon what happens and when we can get that ready to ship is going to depend on whether or not there are toys in the stores for Christmas."
Jenkins and other small business owners nationwide have formed the group "Tariffs Cost US" to draw attention to how the trade wars are affecting businesses, consumers and the overall economy. They said the tariffs are affecting manufacturing, shipping, hiring and marketing.
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If the federal government finalizes the budget reconciliation bill in play, pro-consumer voices in Minnesota warn the changes will not be friendly to monthly bills for energy customers.
The analysts pointed to new findings from the nonpartisan think tank Energy Innovation, which looked at provisions in the Senate version from this week. It said the plan would cause Minnesotans' home electricity costs to rise by 28% over the next decade.
Annie Levenson-Falk, executive director of the Citizens Utility Board of Minnesota, said it is because Republican lawmakers are poised to eliminate clean energy tax credits while expanding new oil and gas leasing.
"If we can't build as much wind and solar and renewables, then we're not just going to be building more gas plants, but running inefficient, more costly gas plants, more than we would have to," Levenson-Falk explained.
Levenson-Falk pointed out many Minnesotans are already struggling with utility costs, and the advancement of cleaner energy sources has prevented things from getting worse. Fossil fuel-linked groups are cheering the proposed measure, including America's Power, which argued incentives for renewables are no longer needed and they are pushing out energy sources such as coal prematurely.
The debates remain at the forefront with energy demand predicted to spike in the coming years. Levenson-Falk noted the new report showed transitioning back to a fossil-fuel vision would lead to a slower rollout of additional power capacity.
"Our power plants are old and they need to be upgraded or replaced," Levenson-Falk stressed.
Levenson-Falk acknowledged the need for more power grid upgrades with a diversified energy portfolio. But after up-front construction costs, she added operating solar and wind farms is not as expensive because there is no fuel needed, benefiting ratepayers.
Even with congressional moves potentially stalling progress, she emphasized clean energy would still be a part of the mix as utilities develop their own strategies.
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