** Tucson Electric Power filings show millions of dollars to trade and chamber groups possibly borne by customers ([link removed])
------------------------------------------------------------
By Stephanie Chase on Jan 10, 2025 12:30 pm
Tucson Electric Power (TEP) spent $2.1 million, which it intends to collect from customers, on memberships in political trade associations, chambers of commerce, economic development organizations, and other groups during 20 months between 2023 and 2024. TEP reported ([link removed]) their contributions for that period to the Arizona Corporation Commission (ACC) in response to a series of questions from then-Commissioner Anna Tovar. The company, which serves 451,000 customers in the Tucson metropolitan area, stated that their total contributions to nonprofit organizations from January 2023 through August 2024 were $5.1 million but identified certain contributions to be paid by ratepayers, totaling over $2.1 million.
TEP’s last rate increase went into effect in September 2023 ([link removed]) . The expenses that the company reported in the ACC filing are not yet in customer rates, but Attachment A of its response to Commissioner Tovar makes clear that the utility will seek recovery of these costs from customers. Though trade association dues were not addressed in its most recent rate case, the ACC previously ([link removed]) [link removed] ([link removed]) the amount of these types of dues paid for by customers by over $500,000 in an earlier TEP case.
** Trade Associations
------------------------------------------------------------
Some of the largest amounts paid by TEP that they will seek to recover from customers are their membership dues for the Edison Electric Institute (EEI) and the American Gas Association (AGA) at approximately $1.3 million and $191,000, respectively. It is unclear as to why TEP is paying AGA membership dues since it is an electricity provider and not a local distribution gas company. As EPI has previously reported, EEI and AGA have spent these dues on efforts to wage an aggressive campaign ([link removed]) against net energy metering and fight electrification efforts ([link removed]) in Arizona.
The ACC disallowed recovery ([link removed]) of the $1.1 million in EEI dues for Arizona Public Service (APS) in the 2022 rate case. ACC Chairman O’Connor’s amendment to the order stated, “The Commission does not support paying for APS’s membership in advocacy organizations such as EEI with ratepayer-derived funds, and thus is not including APS’s operating expenses in TY dues paid for APS’s EEI membership.”
O’Connor’s position, which was adopted by the rest of the Commission, is similar to public remarks ([link removed]) from FERC Commissioner Mark Christie in 2021: “Nothing keeps the monopoly from spending money on First Amendment protected speech, including lobbying legislators and related public-relations activities, but its investors should pay those costs, not captive customers.”
** Chambers of Commerce and Economic Development Groups
------------------------------------------------------------
TEP states that it will seek recovery of tens of thousands of dollars in membership dues to statewide and local chambers of commerce, including $27,000 to the Arizona Chamber of Commerce and Industry.
The Arizona Chamber of Commerce and Industry recently advocated ([link removed]) in support of the utility industry’s push for the ACC to begin accepting formula rates as part of the ratemaking process, which will enable utilities like TEP to receive annual rate increases with less scrutiny. Consumer advocates and experts criticize formula rates as not benefiting ratepayers and causing marked increases in customer bills. The Chamber also said in its 2024 Business Agenda ([link removed]) that it will “[o]ppose efforts that disincentivize, eliminate or limit access to natural gas.” Arizona Public Service and Southwest Gas are members of the Arizona Chamber of Commerce and Industry but do not recover the membership cost from their ratepayers, according to the utilities’ ([link removed]) filings
([link removed]) with the ACC.
TEP also wants ratepayers to pay for its membership in economic development groups, including its $200,000 fee to Sun Corridor, Inc., and its $15,000 fees to the Arizona-Mexico Commission and Canada-Arizona Business Council. Other Arizona utilities, such as Southwest Gas, have memberships in these ([link removed]) or similar groups, but are not paying for membership with ratepayer funds according to their filings.
Intervenors in rate case dockets have argued that utilities should not use customer money to fund chambers of commerce and economic development groups since these entities don’t benefit customers and may advocate for interests that could raise bills. Ratepayer funding for chambers of commerce membership dues have been excluded from rates in many ([link removed]) states ([link removed]) because of “their inherently political, social, and image building nature.” ([link removed])
** Nationwide Problem
------------------------------------------------------------
EPI has highlighted how utilities are using the money that they collect from customers’ monthly bills to fund political machines that push legislation, curry favor with regulators, and alter the outcomes of elections, along with other inappropriate and unnecessary expenses.
SoCalGas booked to ratepayer accounts at least $36 million of political activities to undermine pro-electrification policies in California since 2019, according ([link removed]) to reporting from the Sacramento Bee. The California Public Utility Commission’s Public Advocate Office called that sum “the tip of the iceberg.”
Southwest Gas sought to charge ([link removed]) Nevada customers for the costs of weekly and biweekly massages from the European Massage Therapy School, per its 2018 rate case.
DTE Energy’s bid to charge customers for nearly a quarter-million dollars in private jet expenses in a gas rate case drew a sharp response ([link removed]) from Michigan officials and DTE customers.
EPI’s 2024 report, Power Trip ([link removed]) , closely examines how utilities across the nation pass on the costs of their political influence machines, including lobbying and advertising, to ratepayers. It also finds that utilities frequently seek to charge ratepayers for luxury lifestyle expenses for utility executives, board members, and employees.
EPI’s 2023 report, Getting Politics Out of Utility Bills ([link removed]) , focuses on how utilities use customer money to fund political activities, influence regulators, and affect election outcomes (sometimes illegally), and EPI’s 2017 report, Paying for Utility Politics ([link removed]) , documents how utilities force customers to fund political organizations like utility trade groups.
The post Tucson Electric Power filings show millions of dollars to trade and chamber groups possibly borne by customers ([link removed]) appeared first on Energy and Policy Institute ([link removed]) .
Read in browser » ([link removed])
[link removed] [link removed]
** Recent Articles:
------------------------------------------------------------
** Report: Utilities charge customers for lobbying, corporate branding, and luxury lifestyle expenses ([link removed])
** Gas Utility National Fuel Used Its Customers’ Money for Lobbying ([link removed])
** Duke Energy utilities long knew of climate change risks before joining denial campaigns ([link removed])
** CenterPoint lobbyist ghostwrote comments to support gas appliance rebates ([link removed])
** TVA Documents Reveal New Details About How America’s Major Utilities Fight Clean Air Regulations ([link removed]
============================================================
** Facebook ([link removed])
** Twitter ([link removed])
** Website ([link removed])
Copyright © 2025 Energy and Policy Institute, All rights reserved.
You are receiving this email because you opted in at our website via our Contact Us page.
Our mailing address is:
Energy and Policy Institute
P.O. Box 170399
San Francisco, CA 94117
USA
Want to change how you receive these emails?
You can ** update your preferences ([link removed])
or ** unsubscribe from this list ([link removed])
.
Email Marketing Powered by Mailchimp
[link removed]
