The Arizona Republic
Mark Shaffer
Jan. 7, 2007
New Arizona Public Service Co. President Donald Brandt discusses some of the utility's main issues:
• Proposed 20.4 percent electric rate increase. "If the (Arizona) Corporation Commission doesn't approve our request, there's no doubt in my mind that our bond rating will be downgraded to non-investment grade junk. That will mean a needless increase in cost for our customers between $650 million and $1.2 billion over 10 years. If that happens, I will also be very concerned with our access to capital markets. To have the second-fastest-growing utility in the country teetering on the lowest investment grade is a very dangerous place to be."
• Increased federal oversight of Palo Verde Nuclear Generating Station because of malfunctions. "We had a great track record, the best in the industry for 10 years. But some element of complacency slipped in and nuclear plants have to be in a constant improvement process. We've already changed the people out there that we needed to. Plus, before his retirement Jim (Levine) took the bull by the horns and put in an improvement program which I think has impressed the Nuclear Regulatory Commission."
• Expanding Palo Verde. "It's way too early to speculate about that. There are potential other sites in the state with a better water supply. We are so far off from additional viable nuclear. I think it needs to go in that direction but we have to get Yucca Mountain (nuclear waste repository) going first. Eighteen nuclear plants in India alone are being built but you can't afford in this country to get one even half built because of the risk factors. Global warming and competition are going to force a decision on whether we are going to have more nuclear energy."
• TransWest Express 6,000 megawatt project to bring electricity from Wyoming. "Our planning now is looking at having it in place between 2015 and 2020. This is an ideal alternative for our state because there are a lot more wind sites in Wyoming and huge coal reserves. But there is going to be a lot of blocking and tackling."
