On June 11th, the Arizona Corporation Commission will be reviewing a very significant decision from its own Line Siting Committee. In the decision, the Arizona Power Plant and Line Siting Committee rejected a request by Unisource to waive its own authority to review new thermal power plants in the state. To do so, the ACC would have to interpret Arizona law differently than it has for the last half century.

The Line Siting Committee is made up of 11 members. Six of those members are appointed by the corporation commissioners themselves. All six of the ACC-appointed members were appointed last year at this time. Roman Fontes representing the counties, David Kryder representing agriculture, Toby Little representing the general public, and Scott Somers representing the cities were appointed by the ACC on May 1, 2023. The appointments of Kryder, Little, and  Somers were unanimous. Fontes was appointed 4-1 with Commissioner Tovar voting no. Dave Richins representing the general public and Jon Gold representing the general public were appointed on July 12, 2023 unanimously.

Five of those six appointees voted no on Unisource’s request after a two-day hearing that resulted in a 463 page-transcript. Richins, Fontes, Little, Somers, and Gold all voted against Unisource. Here are comments taken from the transcript.

Richins questioned Unisource stating, “so you don’t consider a CEC [certificate of environmental compatibility] would be part of the right thing to do, then, in this instance?” Little pointed out that “one of the important parts of the law says that the CEC would provide a single proceeding to which access will be open to interested and affected [persons].”
​
Unisource is attempting to reinterpret A.R.S. § 40-360(9) in a way to absolve them of needing environmental review by the ACC. To do that, they have to prove that the turbines are separate from one another. Richins asked “that natural gas feeds into the whole facility from one location into that plant, into that generating station?”  Fontes asked, “Is it one single gas contract or is it separate gas contracts, because you’re characterizing these as separate units that are operating independent and dispatching.”

Little explained her vote against Unisource saying, “I believe that as a representative of the public, I have a responsibility to assure that the public has the right to express their voice in the siting of environmental impact for generation and transmission, and I think that clumping a bunch of smaller units all in one place does that. And I vote no.”

Richins made the motion to deny Unisource’s request, which was seconded by Fontes. Explaining his vote, Gold said, “I too represent the people of the state of Arizona and while I believe you should build this plant, I believe a CEC in this case is necessary…. I don’t foresee you not getting one. But I have to say, this Committee is here for a reason.”

The committee voted 9-2 to deny Unisource’s request. The committee then issued a written decision including its legal analysis denying Unisource’s request on May 2, 2024. The decision stated, “[Unisource’s] interpretation of A.R.S. § 40-360(9) would circumvent the manifest purpose of the line siting statutes and deprive the people of Arizona who are affected by the construction of these major facilities of their ability to participate in the process to mitigate the adverse impacts on the environment and their quality of life.” Pg. 6.

The ACC commissioners should uphold the overwhelming decision of the committee they just appointed last year – the committee that listened to two days of testimony and oral arguments and reviewed dozens of exhibits. The committee got it right and the ACC should deny Unisource’s request. Doing anything else would needlessly cede half of the authority of the ACC’s own Line Siting Committee.

AriSEIA filed exceptions in the Unisource Electric (UNSE) certificate of environmental compatibility (CEC)) case in which they have asked the ACC for a "disclaimer of jurisdiction." UNSE asks the ACC to interpret AZ law differently than it has for the last 53 years and in a way that would basically waive ACC authority over all new gas plants in the state. AriSEIA also put forward an amendment to improve ACC Staff's Sample Order No. 2 denying the request. The Line Siting Committee already voted 9-2 against UNSE. This is on the June 11th open meeting agenda.

UNSE filed a duplicative request for a Motion to Dismiss or Motion to Stay today; however, AriSEIA filed an additional objection. UNSE already admitted on the record to breaking the law.

UNSE filed an Answer to AriSEIA's complaint that they have been operating Black Mountain Generating Station since 2007 in violation of Arizona's Line Siting statutes. UNSE asked for the complaint to be dismissed or stayed (i.e. put on hold) pending the outcome of the Black Mountain Expansion Project CEC (certificate of environmental compatibility) matter. AriSEIA has objected and you can read that filing above.

AriSEIA filed a formal complaint today against Unisource Energy Company (UNSE). UNSE has been violating Arizona's Line Siting statutes for 16 years by operating Black Mountain Generating Station (a 122 MW gas plant) without a certificate of environmental compatibility (CEC). The complaint asks for UNSE to be required to obtain a CEC right away and pay punitive damages.

FOR IMMEDIATE RELEASE

Contact:
Autumn Johnson
520-240-4757
[email protected]

Phoenix, AZ: Today, the Arizona Power Plant and Line Siting Committee (Committee) voted overwhelming in support of AriSEIA's position in opposition to Unisource Electric's (UNSE) application for a disclaimer of jurisdiction for its Black Mountain Expansion Project. The Committee voted 9-2 to deny UNSE's application and agreed with AriSEIA, Sierra Club, Western Resource Advocates (WRA), and Southwest Energy Efficiency Project (SWEEP).

UNSE requested the Committee interpret Arizona law in a way it had never done in its 53 year history. ARS 40-360 was enacted by the legislature in 1971 as a means to "provide a single forum for the expeditious resolution of all matters concerning the location of electric generating plants and transmission lines in a single proceeding to which access will be open to interested and affected individuals, groups... to enable them to participate in these decisions." The statute applies to thermal plants (gas, coal, nuclear, hydro) 100 MW or greater. For the first time, UNSE argued the statute should only apply to turbines greater than 100 MW, regardless of how big the plant as a whole is. This would have eliminated regulatory review for all new gas and small modular nuclear plants in Arizona, significantly disadvantaging renewables in any kind of request for proposal process.

AriSEIA argued this interpretation was both illogical and also incorrect under the facts of the case. "Reason prevailed today when the Line Siting Committee told one of Arizona's largest utilities that it also must abide by the law," said Autumn Johnson, Executive Director of AriSEIA. "UNSE has knowingly been violated Arizona law for 16 years and it is time it is held accountable."

The Committee will issue a formal Order denying UNSE's request for a disclaimer of jurisdiction in the coming weeks. The full docket can be found here.

About AriSEIA

AriSEIA is the leading voice of the solar industry in Arizona, dedicated to advancing solar energy through advocacy, education, and collaboration. With a commitment to promoting sustainable energy solutions, AriSEIA serves as a catalyst for the growth and development of Arizona's solar industry.

AriSEIA filed a response to Commissioner Tovar's letter in the Unisource Electric (UNSE) Certificate of Environmental Compatibility (CEC) matter. The letter inquired about the policy statement surrounding the Line Siting statutes and UNSE's interpretation. Read her letter here.

A recent Arizona Republic article thoroughly discussed Mohave Electric Cooperative’s Mohave Energy Park and its local opposition. It also stated that “with a capacity of 98 megawatts – just shy of the 100 MW limit that requires approval under Arizona law by a committee that would provide a ‘forum for interested and affected individuals.'"

What folks in Mohave County may not know is that Unisource Electric (UNSE) is simultaneously planning a 200 MW expansion of Black Mountain Generating Station located in Golden Valley.

Not only is the UNSE gas plant expansion twice as big as the Mohave Electric project, but UNSE is arguing that the Arizona law referenced above should be reinterpreted to exempt their project from review, too. UNSE has asked the Arizona Power Plant and Line Siting Committee to waive its jurisdiction over the Black Mountain Expansion Project because the individual turbines are less than 100 MW.

UNSE argues that Arizona law considers the individual turbines “plants” instead of the entire project and since their turbines are 50 MW each for a total of 200 MW of new gas, they do not need review. Not only would this limit the ability of Mohave County residents to weigh in on the siting of this project, but it would pave the way for all utilities in Arizona to argue the same thing for their projects.

If UNSE is successful, essentially all new gas plants in Arizona would be exempt from the law that intended to create a public process and protect the local environment from new power plants. Mohave County residents, like everyone in Arizona, would not have a voice at the Arizona Corporation Commission (ACC) before these plants are built.
​
April 24 is the time to offer public comment on UNSE’s interpretation of Arizona law. The public can file comments online through the ACC’s website (use Docket No. L-00000F-24-0056-00230) or in person, via Zoom, or via the telephone at the time of the hearing (April 24 starting at 10 a.m.). The hearing will take place at the ACC at 1200 W. Washington Street in Phoenix.

AriSEIA filed an objection to UNSE's motion to consolidate all intervenors in their Line Siting matter as one, which would deprive AriSEIA of its due process rights, violate the law, and leave industry with no representation in a proceeding that could change the way all new gas power plants in our state are regulated.