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Corporation Commission candidates go head to head on weighty issues
VICKI CABOT
Contributing Editor
The race between Arizona Corporation Commission candidates Tony West and Paul Newman is raising a raft of issues, ranging from proposed deregulation of local telephone service to campaign spending.
Democrat Newman, a Bisbee lawyer and two-term state legislator, is touting his independence and proven track record as a voice for consumers. Republican West, a small-business owner whose public service includes 16 years in the state Legislature and two terms as Arizona state treasurer, emphasizes his success at cutting costs and promoting efficiency. Both agree that the commission, in recent years a hotbed of dissension and disagreement, needs to enter a new era of professionalism. Jewish News asked the candidates a handful of questions to help voters make a choice.
Question: Why have relations on the commission been so difficult and how do you plan to ensure that the future will be less contentious?
Newman: Unfortunately, the current commission has been embattled for quite some time now, leading to high staff turnover. Arizona cannot afford to have another commissioner who puts his or her own interest above that of consumers. The Corporation Commission is in such turmoil because of the current feud between the two sitting Republican commissioners. As the only candidate who does not have a political ally on the commission, I feel I can be an independent and objective voice on the commission. I do not concern myself with having "enemies" or "allies" on the commission, and I do not feel that I need to hire a consulting firm to do my work. I believe that by acting rationally and ethically, I can only help the situation.
West: What we've seen is a clear conflict of personalities and an inability to work through this conflict for the common good. The result is a commission paralyzed by infighting, frozen by inaction and hindered by incompetent decisions at the policy-setting level. The commission's brightest and most able employees are leaving in a mass exodus.
I am committed to return respect, integrity, dignity and professionalism to the commission. I have entered into an agreement with one of the best management-consulting firms in Arizona to prepare a strategic plan, soliciting input from the two sitting commissioners, the executive secretary, and current and former employees indicating what needs to be done to improve the commission. This plan is to be ready for me on Nov. 4, the day following the general election. In addition to this, the need to hire competent staff who will only come to work in an atmosphere of civility, professionalism and dignity, as well as the need for additional resources from the Arizona Legislature, is essential.
Question: How do you expect deregulation of electric utilities to work?
Newman: In order for the restructuring of the electric utility industry to go smoothly, we must have a commissioner with a proven record of building bipartisan coalitions to protect consumers' rights. In the state Legislature, I sponsored House Bill 2663 and worked closely with Democrats and Republicans on the restructuring of public utilities. I fought to make sure all consumers will benefit from competition as soon as possible. I am the only candidate in this race with firsthand experience in dealing with this issue.
West: First of all, the commission must oversee the proper implementation of deregulated electric utilities. Through unfettered competition and competitive electric rates for all, rate payers should begin to see the benefits. Deregulation must be a win-win situation for all Arizona consumers, with no class of rate payers ending up subsidizing another. There has to be a balance of interests between rate payers and utilities. We must minimize financing costs, ensuring no adverse impact on state credit or financing capabilities. We must control intervention and appeals process and the overall time line and evaluate tax-exempt financing alternatives. There must be a fair, competitive market structure in place.
Question: What are the disadvantages and risks of free competition?
Newman: Arizonans can stand to benefit tremendously by rules that have been put in place by the commission. However, these rules are only as good as the commissioners who are enforcing them. My ethical public- service background serves as a personal guarantee that the consumer will always come first in Arizona, not the big utility companies.
The commission is currently crafting rules and policies that will determine the success of deregulation. It is my goal to ensure this is not the biggest "bait and switch" tactic we have ever seen. Residential consumers should not be stuck with the costs of deregulation simply so utilities can make increased profits and offer discounts to big business.
West: Competition is a good thing as it provides choices for all of us. However, it is imperative that competition occur on a level playing field. We must be certain that the new competing companies can deliver what they promise and that the consumer is not subjected to unreasonable and unjustified costs or inadequate or unreliable service. All consumers must be fairly served.
Question: How can deregulation of local telephone service yield lower costs for consumers while attracting new entrants in the market?
Newman: In 1997, the Republican Commissioners Jim Irvin and Carl Kunasek approved a phone line lease so prohibitively high that local phone competition will likely never happen in this state. This guarantees US West will provide your local service, giving consumers no options in the marketplace. To have a truly competitive local phone service market, the commission must rethink this issue.
West: The local telephone market will become competitive only when the consumer has viable choices, not only in terms of price but also in terms of quality of service and product choice. Cable companies have begun to compete for customers over existing cable lines into our homes. They will offer different products, such as high-speed cable modems, as well as different pricing. New entrants are today building infrastructure and competing for business customers. Over time they will compete for residential customers, but only when it is financially advantageous for them. The commission must make sure that interconnection agreements are enforced and that wholesale quality of service standards are set. It is imperative that new entrants get access to the incumbent network.
Question: How will increasing deregulation affect the role of the Corporation Commission in the future?
Newman: I believe that the Corporation Commission will have an appropriate and important role to play in the area of consumer education. I believe that the commission must aid consumer education for one reason: Utility companies have an inherent difficulty in delineating consumer education from marketing. Because of its detached position from profit-making, the commission is in a good position to provide or oversee consumer education. However, if utility companies begin to provide the education that consumers need, there would be no reason for intervention by the commission. Specifically, I would evaluate the programs proposed or already in place by utility companies and would work with them on improving them. If it is determined that the utility companies are unable to provide appropriate information to consumers, specific commission action may be required.
West: Deregulation is a new paradigm for the Arizona Corporation Commission. The commission's new role, especially in electric and telephonic deregulation, will be the oversight of those companies operating under its jurisdiction. The commission's major role will be to see that all markets are open, unfettered and competitive and that all barriers for entry into these markets are significantly reduced or eliminated and that we, the consuming public of Arizona, are receiving the most economical, efficient, and reliable utility services possible.
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