Home » From The Readers, Letters to the Editor » APS CEO Compensation Outrageous and Obscene

APS CEO Compensation Outrageous and Obscene

Sedona AZ (May 14, 2013) – In a Letter to the SedonaEye.com editor, Warren Woodward of Sedona, Arizona, writes the following RRN Guest Perspective column rebuttal to the Arizona Corporation Commissioner Bob Burns with copies to ACC Commissioners, Governor Jan Brewer and the Arizona Attorney General Tom Horne:

Warren Woodward
55 Ross Circle
Sedona, Arizona 86336
928 204 6434 
 

May 7, 2013

ACC Commissioner Bob Burns

An Arizona citizen takes issue with ACC Commissioner Bob Burns position on smart meters

Commissioner Robert Burns

Arizona Corporation Commission (ACC)
Docket Control Center
1200 West Washington Street
Phoenix, Arizona 85007 
 

Re: Docket # E-01345A-13-0069

Commissioner Robert Burns;

Your May 1st “Guest Perspective” article in the Sedona Red Rock News was both inappropriate and inaccurate.

It seems very improper for you to parrot APS propaganda while APS’s so-called and misnamed “smart meter opt-out” fee request (AKA attempted extortion) is pending. In addition to improper, your comments may well be illegal but, as usual, it was very hard for me to get a straight answer out of anyone I contacted at the ACC regarding the rules of procedure. Indeed, one ACC staffer rudely blurted that she did not work for me – interesting news since I am both a ratepayer and a taxpayer.

Although you included a disclaimer in your remarks to the effect that you “have not reached any final conclusions”, you also chose to present only one view – the APS view – so the implication and effect of your article was endorsement of that singular, APS view. I see your disclaimer as a lame attempt to hide behind impartiality while at the same time spreading APS’s misinformation.

Amazingly, you reveal yourself to be more concerned about APS’s bottom line than with people’s health and privacy. In your article you mention a meeting you attended in Sedona in which people expressed health and privacy concerns regarding “smart” meters. Yet your response is that “… perhaps an important fact is getting lost in the discussion – namely, that the digital meters represent a significant cost savings to the utility, a savings, that, in turn, gets passed on to its customers.”

“Significant cost savings”? Do tell us exactly how much ratepayers will save per month? Substantiate your claim. Show us some numbers based on real life, not APS propaganda. If the cost savings are “significant” as you claim, then it should be easy for you to tell us specifically. Since some locations in Arizona and elsewhere have had “smart” meters installed for years then it should be easy for you to point to examples of “significant cost savings” that have been passed on to customers already, and when and where that has occurred.

58 yr old Donald E. Brandt Chairman of the Board, President and Chief Executive Officer; Chairman of the Board and Chief Executive Officer, APS at Pinnacle West Capital

Donald E. Brandt is the 58 yr-old Chairman of the Board, President and Chief Executive Officer; Chairman of the Board and Chief Executive Officer, APS at Pinnacle West Capital

Wake up, Mr. Burns: There are no “cost savings”.  Besides, even if there were cost savings, what possible incentive does APS have to pass them on to customers?

They have no competition. The APS CEO’s compensation has gone from a bloated $5.66 million in 2010 to a piggish $7.9 million in 2011, and last year was a thoroughly obscene $11.5 million – this during a recession while many are struggling to pay APS rates! And while the APS CEO was making his multimillions, the ACC gave a rate increase to “poor” APS for not selling enough electricity. So don’t make me laugh about any savings getting passed on to the customer.

Neither the ACC nor APS has passed anything on to us except higher rates. 

I have sent you reports by various state Attorneys General attesting to and actually proving what a financial scam “smart” grid implementation is. Yet you still parrot the APS line? Incredible.

How ironic that your article appeared alongside an editorial in which the Sedona Red Rock News insisted they only print letters from people who provide documentation of assertions which are presented as facts.

Clearly neither you nor they fact-checked yours. Indeed, neither you nor the ACC have done any cost/benefit analysis of the “smart” grid even though an ACC decision called for one as far back as 2007. And yet you somehow feel qualified to lecture us about “significant cost savings”? Again, incredible.

Your article presents the myopic view that the only expense involved in the “smart” grid fiasco is meter reading. Do you read anything sent to you, anything posted to the docket? It certainly does not seem so since I have also previously sent you and the rest of the ACC a thorough debunking of every aspect of APS’s preposterous fee request. I am resending it as an enclosure. Read it this time and quit scapegoating people who refuse “smart” meters as a financial burden on everyone else, and absurdly, to blame for APS meter reader traffic accidents!

The real financial burden is the one APS is placing on all ratepayers by ripping out and ruining about a million perfectly working analog meters and replacing them with ones that cost about 5 times more. And then there are all the rest of the “smart” grid expenses detailed in my enclosed and previously sent letter, expenses on which APS gets to make an 8 to 10% guaranteed return simply because you and the others at the ACC have been totally asleep on the job and essentially gave APS carte blanche.

In actual fact, people refusing “smart” meters are paying for the “smart” meters of others (plus installation, related equipment and infrastructure, etc.) and without getting a “smart” meter themselves. People who refuse “smart” meters should really be getting a refund!

Read the reports of the various Attorneys General which have all been sent to you by me. 

Connecticut A.G.: “…the costs associated with the full deployment of AMI [“smart”] meters are huge and cannot be justified by energy savings achieved.

Illinois A.G.: “The utilities have shown no evidence of billions of dollars in benefits to consumers from these new meters, but they have shown they know how to profit.”

Michigan A.G.: “A net economic benefit to electric utility ratepayers from … smart meter programs has yet to be established.”

It is also astonishing that you completely ignore the total, utter and complete violation of private property that “smart” meters are. As I have pointed out repeatedly, APS does not have easement for what is essentially networking equipment. APS does not have easement to site microwave broadcasting antennas on people’s property. Period. That APS wants to charge people who do not allow APS to take and use their property for APS’s antennas and networking equipment is well beyond audacious; it is attempted extortion.

What is wrong with you?

I remember when real Republicans (of which there are too few today) revered private property. Now it seems that “significant cost savings to the utility” – and corporate greed in general – take precedence over individual rights and property rights with you Republicans. I can’t believe we are even having a discussion about payment to avoid such a property rights violation, not to mention payment to avoid having pulsed microwave 24/7/365 at one’s own home.

About a third of your article was a hymn of praise to Arizona’s Investor Owner Utility system. You mentioned that it is a “’regulated monopoly’ structure”, but where on Arizona earth has the regulatory part of the structure been all these years while APS has gone on a “smart” meter installation binge? There have been no hearings, no examination of facts or costs, no oversight of “smart” meters whatever by the ACC.

Arizona Revised Statutes and Arizona Administrative Code have been ignored and violated, including:

A.R.S. 40-361.B – Every public service corporation shall furnish and maintain such service, equipment and facilities as will promote the safety, health, comfort and convenience of its patrons, employees and the public, and as will be in all respects adequate, efficient and reasonable.

A.R.S. 40-321.A – When the commission finds that the equipment, appliances, facilities or service of any public service corporation, or the methods of manufacture, distribution, transmission, storage or supply employed by it, are unjust, unreasonable, unsafe, improper, inadequate or insufficient, the commission shall determine what is just, reasonable, safe, proper, adequate or sufficient, and shall enforce its determination by order or regulation.

A.R.S. 40-202.C.1 – Protect the public against deceptive, unfair and abusive business practices, practices related to deposit requirements and reconnection fees, intrusive and abusive marketing, deceptive or untrue advertising practices and practices prohibited under subsection H of this section.

A.A.C. R14-2-209.A.1 – Each utility, billing entity, or Meter Reading Service Provider may at its discretion allow for customer reading of meters.

With your pathetic repetition of APS propaganda, you insult the people you supposedly represent. I find you a disgrace to the system you laud, a system which could in fact work well if – if – regulators such as yourself did their homework, their jobs, and some genuine regulating.

In conclusion, from the article you wrote it seems clear you are at sea on this issue, in way over your head. Others and I have done all the research on this issue yet you seem incapable of grasping any of it. You ought to be ashamed of yourself. In fact you ought to resign.

Sincerely,

Warren Woodward 

Cc: Commissioners Brenda Burns, Gary Pierce, Susan Bitter Smith, Bob Stump, Governor Jan Brewer, Attorney General Tom Horne 

PS – I am sending an additional copy of this letter, including enclosure, to the other “smart” meter docket # E-00000C-11-0328 as well so that in the future, when the lawsuits start, courts may have no doubt or question that you had knowledge upon which you refused to act and were therefore derelict in your duty.

[ The enclosure referred to in the letter may be found online here: Connecticut Attorney General Calls AMI Meter Use Punitive https://sedonaeye.com/connecticut-attorney-general-calls-ami-meter-use-punitive ]

For the best free Arizona News and Views? Subscribe to www.SedonaEye.com today.

For the best free Arizona News and Views? Subscribe to www.SedonaEye.com today.

7 Comments

  1. Hi all:

    This is the link for the Arizona Corporation commission. The clock is ticking on your chance to make a difference about the controversial “SMART METER”.

    http://www.azcc.gov/

    Go to the bottom of the page and click on edocket.

    http://edocket.azcc.gov/

    Paste this number in the search bar.

    E-00000C-11-0328
    Click on documents. read comments from people like you. This is about the opt out plan from APS concerning the ‘smart meter’ and the money they want us to pay to protect our health.

    E-01345A-13-0069
    The first docket. Still open for comment. Click on documents and read comments from people who have taken the time to try and protect their neighbors.

    Time for you to STEP IT UP and participate too. You can use this form to make a comment and a difference.

    http://www.azcc.gov/Divisions/Utilities/forms/ComplaintForm2013.pdf

    E-Mail: mailmaster@azcc.gov

    Arizona Corporation Commission
    Utilities Division
    1200 West Washington
    Phoenix, AZ 85007-2996
    – or –
    400 West Congress, Ste. 218
    Tucson, AZ 85701-1347
    Arizona Corporation Commission
    Corporations Division
    1300 West Washington 1st Floor
    Phoenix, AZ 85007-2929
    – or –
    400 West Congress
    Tucson, AZ 85701-1347

    Phoenix Office: (602) 542-4251
    Toll Free 1-800-222-7000 (In-State Only)
    Tucson Office: (520) 628-6550
    Toll Free 1-800-535-0148 (In-State Only)

  2. Glenn Shannon says:

    I really doubt you will get an answer on this letter and if you do will have to look hard to find any facts in it. I remember years ago when they convinced people to save water and when they did the water rates were raised because the water company said income was down due to lower water sales. Same thing happened with electricity as people bought better AC units, appliances re insulated and sealed up their homes. Bottom line we get hammered from both sides of the government decisions whether direct taxes or indirect decisions from the corporation commission.

  3. I remember that also Mr Shannon and noted a AZ Republic story that explained how electricity consumption has declined since the 70s even with increased population and its demands. Better insulation, more efficient HVAC and weatherizing of homes including windows and batting, and more than we can list. APS and companies want to undermine the solar programmes because they do not want to purchase cheap electricity, they want to sell electricity. The best thing Phoenix mayor could ever do to make a monument to good governance would be to demand retro fit of every home with solar starting with those receiving assistance with electrical costs and the elderly by electricity companies that are after all government sponsored monopolies.

  4. Outrageous and Obscene indeed! Thank you for bringing these facts to the attention of the public.

  5. N. Baer says:

    @Oscar Johnson – I have seen the same documentation that electric usage is static (no pun intended) since the advent of digital technology which consumes far less electricity. There was also information about this on a “Marketplace, NPR” radio show sometime in the fall of 2011. In addition to APS wanting to sell us electricity, it wants to enter a “new” industry, “Big Data.” It can then sell our collective, aggregated data, as well as trade in that market, made possible by American consumers who fail to stand up for their rights.

  6. What amazes me is if an article is written on a Hollywood star there would be over a thousand comments but something like this there is only three. Now you know why the people keep getting hit in the shorts.

  7. Executive Profile* Donald E. Brandt
    Chairman, Chief Executive Officer, President, Chairman of Arizona Public Service Company and Chief Executive Officer of Arizona Public Service Company , Pinnacle West Capital Corporation
    Age 58 Total Calculated Compensation This person is connected to 81 board members in 6 different organizations across 7 different industries.

    See Board Relationships
    $11,460,344
    As of Fiscal Year 2012
    Background*
    Mr. Donald E. Brandt, Don has been the Chief Executive Officer and President at Pinnacle West Capital Corporation since March 2008. Mr. Brandt has been the Chief Executive Officer of Arizona Public Service Company since March 1, 2008 and its President since May 15, 2013 and also served as its President from December 2006 to 2009. Mr. Brandt served as Chief Financial Officer of Pinnacle West Capital Corporation from December 2002 to March 2008 and served as its Chief Operating Officer from March 01, 2008 to April 2009. He served as Senior Vice President of Pinnacle West Capital Corporation from December 2002 to September 18, 2003 and served as its Executive Vice President from September 18, 2003 to March 2008. He served as Principal Accounting Officer at Pinnacle West Capital Corporation. He served as Senior Vice President of Finance and Corporate Services at Union Electric Company. He has more than 25 years of utility experience. Before joining Pinnacle West and APS, Mr. Brandt served as Senior Vice President and Chief Financial Officer at Ameren Corporation, a St. Louis-based energy services company. Prior to Ameren, he was with Price Waterhouse & Co. He has been the Chairman of Pinnacle West Capital Corporation since January 2009. He serves as the Chairman of SunCor Development Company. He has been Chairman of the Board of Arizona Public Service Company since April 2009 and serves as its Director. He has been a Director of Huntco Inc. since May 1993. He serves as a Director of Nuclear Electric Insurance Limited and Nuclear Energy Institute. He served as a Director of Ameren Illinois Company. Mr. Brandt earned a Bachelor of Science degree in Business Administration from St. Louis University.

Leave a Reply

Copyright © 2008-2017 · Sedona Eye · All Rights Reserved · Posts · Comments · Facebook · Twitter ·