2 Arizona Corporation Commission Republican candidates talk priorities

Three Republicans are competing for two spots on the five-member commission. They include incumbents Kevin Thompson and Nick Myers and challenger Ralph Heap.

The winners will advance to the November general election against Democrats Jonathon Hill and Clara Pratte, both of whom are unopposed for their party’s nomination.

The last day to register to vote in the primary election is June 22. Early voting begins June 24. Primary Election Day is July 21.

The Arizona Republic asked each candidate questions about their bid for office and how they would handle key issues if elected. Candidates had a limit of 100 words. Some answers have been edited for length. Answers are in alphabetical order.

Here's what they had to say.

Heap did not respond before publication.

Rate hikes: How do you feel about rate hikes?

Arizona utilities have repeatedly sought rate increases, including a double‑digit hike for APS. What specific criteria would you use to approve or reject a rate hike?

Nick Myers: The constitution requires us to set just and reasonable rates. That means we have to make sure every item the utilities are asking to recover for is used, useful, reasonable and prudent ... and most importantly not "gold plated." Any items that don't meet those requirements are not allowed to be recovered by the ratepayers of the utility. It is important to remember that the constitution does not allow us to simply say "no" to a rate case. We must find the right balance that keeps the utilities whole, while also keeping the rates as low as possible.

Kevin Thompson: While utilities are entitled under our constitution to recover expenses for maintenance, construction, and other work performed to maintain and upgrade the grid, it’s the Commission’s duty to ensure expenses are prudent and reasonable to consumers. Every rate case is unique, but every major rate case is fully contested with hearings from a judge and exhausted by intervening parties. It’s the Commission’s job to review the recommendations from the judge and evaluate all of the parties' positions. I will continue to focus on eliminating utility waste and costs not beneficial to serving customers.

Vision: How do you see the Arizona Corporation Commission's role in regulating utilities?

Do you see the commission’s role as one that watches over utilities to keep spending and rates down, or one that partners with them to ease investment and ensure reliable power?

Nick Myers: When it comes down to it, my focus is on reliability first, with a close second being affordability. Yes, being a watchdog is a part of that equation. However, it is not the only part. We must make sure the lights and air conditioners stay on at the most affordable rates possible. Our responsibility is to find that balance. The only thing worse that high rates is not having the utility service operating 24/7. So it's a balance to make sure they are doing what they need to do, but not a bunch of other fluff that adds to rates unnecessarily.

Kevin Thompson: Both. The Commission serves as a check on utilities to ensure investments are prudent, costs are minimal, and eliminate waste. Simultaneously, utilities must invest in new infrastructure and maintain reliable and safe electric, natural gas, and water systems capable of meeting modern needs. Arizona used to be ranked at the bottom for regulatory stability nationally. This impacted ratepayers as utilities were faced with higher interest rates on capital, creating higher lending costs and greater regulatory lag. Arizona now sits in the middle nationwide, resulting in lower interest rates and, in turn, reduced project costs and costs for consumers.

Heat: What is your position on power shutoffs during extreme heat?

What responsibility, if any, does the commission have to prevent utility shutoffs in extreme heat?

Nick Myers: The responsibility is on the customer to make sure they pay their bill. While we currently enforce moratoriums on shutoffs in the hottest times of year, it is important to remember that customers must still pay their bill, and even though they may fall behind, they will be responsible for paying that bill when the moratorium is lifted, so they should be paying as much as they can every month to make sure they aren't disconnected later for being so far behind as to not be able to recover.

Kevin Thompson: The Commission has already enacted shutoff prevention rules in Arizona which prohibits a customer who has fallen behind on their bills from having their power cut off during the extreme heat of the summer. The Commission is only authorized to levy fines if a utility violates the rules.

Energy supply: What do you think is the best mix of energy sources for Arizona?

In descending order, how should Arizona prioritize its sources of energy: coal, natural gas, nuclear, hydroelectric, wind, solar?

Nick Myers: This cannot be answered as stated. The best way to pick resources, or the resource mix, is on a project by project basis. The chosen technology should be the one that is the least cost, most reliable, and appropriately dispatchable for the intended purpose. Picking winners and losers is a fools game that raises rates. This is shown by a recent study from The Western Way that highlighted how the states who do not prioritize specific technologies, but have an all-of-the-above approach have lowest rates.

Kevin Thompson: Based on reliability and affordability considerations: Natural gas, nuclear, solar, coal, hydroelectric, wind. Our grid is not capable of being entirely dependent upon renewables given current technology and demand. Renewables need baseload generation like natural gas, nuclear, and coal to be successful. Hydro is an important component of our energy mix, but resources are limited and becoming an increasingly diminishing component of our portfolio. SMR technology should be prioritized once readily available and economical. New coal plants are not being built, however, we should preserve their functionality until they are no longer economical and can be retrofitted for natural gas.

Data centers: How should the commission protect consumers from paying for the high energy needs of data farms?

As data centers drive major new electricity demand, how will you ensure residential customers aren’t subsidizing the costs of serving large corporate energy users?

Nick Myers: Arizona is a national leader in this. I have been traveling all over the U.S. discussing our "growth pay for itself" strategy and it is gaining a lot of traction. This is actually part of the standard negotiations when discussing large load power for data centers and their big-tech companies. Those companies are embracing this mindset wholeheartedly as we have basically told them they must be doing that. Most of these companies are even going above and beyond to actually put downward on residential rates. This is a win for all Arizonans!

Kevin Thompson: This Commission has made it very clear to the utilities that cost causers must pay for the infrastructure and assets needed to serve their load. Whether that's utilizing Energy Service Agreements (ESA) or a combination of existing tariff rates and ESAs, existing consumers will not absorb the cost to serve a large load user, regardless if it’s a data center, chip manufacturer, or large master planned housing community. If the upgrades aren’t a benefit for the grid as a whole, then the cost causer pays.