Miller v. Arizona Corporation Commission
Encyclopedia
According to the Arizona state Constitution, the Arizona Corporation Commission
(ACC) has the full power to, “prescribe just and reasonable classifications to be used and just and reasonable rates and charges to be made and collected, by public service corporations within the state for service rendered therein, and make reasonable rules, regulations, and orders, by which such corporations shall be governed in the transaction of business within the state…” In a controversial move, the ACC adopted a new policy known as the Renewable Energy Standard and Tariff (REST). REST required public utilities in Arizona to run a certain amount of their power from renewable energy sources. The move brought into question whether the ACC had constitutional authority to impose such a requirement on utilities. The Goldwater Institute
filed suit arguing that the ACC had expanded its powers beyond its constitutional jurisdiction. According to the director of the Goldwater Institute Scharf-Norton Center For Constitutional Litigation, Clint Bolick
, “The rules are an unconstitutional power grab by an agency that is rapidly becoming Arizona’s fourth branch of government.” The Arizona Public Service
(APS) utility estimated that for the fiscal year of 2008, the cost of the new renewable energy standards would cost $48.2 million. By 2012, the APS estimated the costs would reach $347 million. But Arizona Attorney General
Terry Goddard
, issued an opinion saying that they were within their constitutional jurisdiction to set a renewable energy standard.
filed a request to the Arizona Supreme Court to strike down the regulations imposed by the ACC. In November 2008, the Goldwater Institute
re-filed in two lower courts where the Maricopa County Superior Court finally accepted Goldwater’s request to hear the case. Oral arguments began in June 2009. On September 2, 2009, a Maricopa County Superior Court Judge ruled in favor of the Arizona Corporation Commission. Two months later, the Goldwater Institute filed an appeal. Reflecting on Goldwater’s attempts to overturn the ACC’s renewable energy standards, Tim Hogan of the Arizona Center for Law in Public Interest, said, “I don’t see how investing in renewable energy can be a bad thing for our state.” Currently, the appeal is still pending.
February 1, 2007: Arizona Chief Assistant Attorney Terri Skladany tells ACC that the authority it cited to promulgate the REST rules is "vague."
March 30, 2007: ACC submits a memorandum in response in which it admits that there is no "isolated source of statutory or constitutional authority" to support the REST rules.
June 15, 2007: The Arizona Attorney General approves the REST rules.
August 14, 2007: The REST rules go into effect.
April 28, 2008: The APS implementation plan for REST is approved by the ACC, and APS estimates costs of $48.2 million in 2008 and total $347 million by 2012.
June 27, 2008: The Goldwater Institute asks the Arizona Supreme Court to strike down the regulations imposed by the ACC.
November 12, 2008: The Goldwater Institute refiles special action in the Court of Appeals after Arizona Supreme Court declines to exercise special-action jurisdiction.
November 19, 2008: The Goldwater Institute refiles complaint in the Superior Court after the Court of Appeals declines to exercise special-action jurisdiction.
June 15, 2009: The Hon. Joseph Heilman heard oral arguments at 10:00 am in Courtroom 814, 101 W. Jefferson in Phoenix.
September 2, 2009: Judge Heilman ruled in favor of the Arizona Corporation Commission. The Goldwater Institute decides to appeal.
November 2, 2009: Goldwater Institute files appeal.
November 16, 2010: Arguments scheduled at 10:15 a.m. in Court of Appeals, Courtroom #1 (second floor), 1501 W. Washington Street, Phoenix.
Arizona Corporation Commission
The Arizona Corporation Commission is the Public Utilities Commission of the State of Arizona, established by Article 15 of the Arizona Constitution. There are currently five members of the commission . Arizona is one of only a handful of states with elected commissioners...
(ACC) has the full power to, “prescribe just and reasonable classifications to be used and just and reasonable rates and charges to be made and collected, by public service corporations within the state for service rendered therein, and make reasonable rules, regulations, and orders, by which such corporations shall be governed in the transaction of business within the state…” In a controversial move, the ACC adopted a new policy known as the Renewable Energy Standard and Tariff (REST). REST required public utilities in Arizona to run a certain amount of their power from renewable energy sources. The move brought into question whether the ACC had constitutional authority to impose such a requirement on utilities. The Goldwater Institute
Goldwater Institute
The Goldwater Institute is a Phoenix, Arizona-based conservative public policy research organization established in 1988. The president is Darcy A. Olsen. The Goldwater Institute advances public policies with emphasis on lower taxes, limited government spending, school choice, and a reduction in...
filed suit arguing that the ACC had expanded its powers beyond its constitutional jurisdiction. According to the director of the Goldwater Institute Scharf-Norton Center For Constitutional Litigation, Clint Bolick
Clint Bolick
Clint Bolick , is an American attorney and the director of the Goldwater Institute's Scharf-Norton Center for Constitutional Litigation in Phoenix, Arizona....
, “The rules are an unconstitutional power grab by an agency that is rapidly becoming Arizona’s fourth branch of government.” The Arizona Public Service
Arizona Public Service
Arizona Public Service Company is the largest electric utility in Arizona and the principal subsidiary of publicly-traded S&P 500 member Pinnacle West Capital Corporation , which in turn had been formerly named AZP Group, when Arizona Public Service reorganized as that holding company in 1985.With...
(APS) utility estimated that for the fiscal year of 2008, the cost of the new renewable energy standards would cost $48.2 million. By 2012, the APS estimated the costs would reach $347 million. But Arizona Attorney General
Attorney General
In most common law jurisdictions, the attorney general, or attorney-general, is the main legal advisor to the government, and in some jurisdictions he or she may also have executive responsibility for law enforcement or responsibility for public prosecutions.The term is used to refer to any person...
Terry Goddard
Terry Goddard
Samuel Pearson "Terry" Goddard III was the Attorney General of Arizona, from 2003 to 2011, who also served as Mayor of Phoenix, Arizona from 1984 to 1990....
, issued an opinion saying that they were within their constitutional jurisdiction to set a renewable energy standard.
Lawsuit
In June 2008, the Goldwater InstituteGoldwater Institute
The Goldwater Institute is a Phoenix, Arizona-based conservative public policy research organization established in 1988. The president is Darcy A. Olsen. The Goldwater Institute advances public policies with emphasis on lower taxes, limited government spending, school choice, and a reduction in...
filed a request to the Arizona Supreme Court to strike down the regulations imposed by the ACC. In November 2008, the Goldwater Institute
Goldwater Institute
The Goldwater Institute is a Phoenix, Arizona-based conservative public policy research organization established in 1988. The president is Darcy A. Olsen. The Goldwater Institute advances public policies with emphasis on lower taxes, limited government spending, school choice, and a reduction in...
re-filed in two lower courts where the Maricopa County Superior Court finally accepted Goldwater’s request to hear the case. Oral arguments began in June 2009. On September 2, 2009, a Maricopa County Superior Court Judge ruled in favor of the Arizona Corporation Commission. Two months later, the Goldwater Institute filed an appeal. Reflecting on Goldwater’s attempts to overturn the ACC’s renewable energy standards, Tim Hogan of the Arizona Center for Law in Public Interest, said, “I don’t see how investing in renewable energy can be a bad thing for our state.” Currently, the appeal is still pending.
Case Timeline
November 14, 2006: The Arizona Corporation Commission (ACC) adopts the Renewable Energy Standard and Tariff (REST) Rules.February 1, 2007: Arizona Chief Assistant Attorney Terri Skladany tells ACC that the authority it cited to promulgate the REST rules is "vague."
March 30, 2007: ACC submits a memorandum in response in which it admits that there is no "isolated source of statutory or constitutional authority" to support the REST rules.
June 15, 2007: The Arizona Attorney General approves the REST rules.
August 14, 2007: The REST rules go into effect.
April 28, 2008: The APS implementation plan for REST is approved by the ACC, and APS estimates costs of $48.2 million in 2008 and total $347 million by 2012.
June 27, 2008: The Goldwater Institute asks the Arizona Supreme Court to strike down the regulations imposed by the ACC.
November 12, 2008: The Goldwater Institute refiles special action in the Court of Appeals after Arizona Supreme Court declines to exercise special-action jurisdiction.
November 19, 2008: The Goldwater Institute refiles complaint in the Superior Court after the Court of Appeals declines to exercise special-action jurisdiction.
June 15, 2009: The Hon. Joseph Heilman heard oral arguments at 10:00 am in Courtroom 814, 101 W. Jefferson in Phoenix.
September 2, 2009: Judge Heilman ruled in favor of the Arizona Corporation Commission. The Goldwater Institute decides to appeal.
November 2, 2009: Goldwater Institute files appeal.
November 16, 2010: Arguments scheduled at 10:15 a.m. in Court of Appeals, Courtroom #1 (second floor), 1501 W. Washington Street, Phoenix.