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Arizona Commissioner Newman Wants Mines to Pay Fair Share

Commissioner Paul Newman

Sedona AZ (March 2 2011)-Arizona Corporation Commissioner Paul Newman introduced an amendment to require Arizona mines to pay their fair share of clean energy but his amendment failed by a 4-1 vote. Newman wants mines like the Morenci mine – owned by global giant Freeport McMoRan – to pay its fair share of Renewable Energy Standard and Tariff (REST) fees. 

“The Morenci mine uses staggering amounts of electricity,” said Newman.  “According to Commission staff, if the mine paid its fair share based on electricity usage, it would pay over $26 million/year.  Instead, the mine will pay less than $200,000/year – less than 1%.”

Newman noted that the mines have been obtaining waivers from the REST for four years, and that Freeport McMoRan profits are up 30%. 

“There are over 1 million Arizonans on food stamps, and the mines want another break.  Is it fair to residential ratepayers who are paying $4.00/month for the REST that the mines pay less than one year of lawyers’ fees?  Clearly it’s not fair.”

Newman also noted that this is a matter of corporate responsibility. “The mines add greatly to Arizona’s economy, and I appreciate that – but the minerals they take out of the ground are nearly free, and profits are up enormously. I’m simply asking the mines to be good corporate citizens.”

Newman has been on the Commission for two years, and he was shocked to learn what a small amount most mines are paying into the RES. Newman says that he is “not going to back down on this issue” and that “this inequity would not be supported by the average residential ratepayer or renter. This is about fairness.”

2 Comments

  1. J. Rick Normand says:

    Commissioner Newman,

    Please stop hiding behind the “Pay Their Fair Share” mantra of the radical environmentalist agenda. Mining is the most capital intensive industry there is and its fraught with risk. US mining isn’t even competitive in the global market for essential base metal commodities. Out of your own mouth, you admit that you want Freeport McMoRan “to pay its fair share of Renewable Energy Standard and Tariff (REST) fees.” In other words, you want them to make a healthy contribution to the subsidization of the alternative energy industry which, to date, still can’t get a launch, as do other core industries using private funds, without taxpayer forced funding. That’s what you really want them to do. The state of California went down the same path you suggest in this article with the Mountain Pass rare earth metals mine which was finally shut down because of environmentalist induced anti-mining legislation. As a result, the Chinese picked up the gauntlet and became the controller of 97% of the world’s rare earth market. Then, finally, the US realized that its entire economic future, aside from Federal Reserve currency manipulation, depends on the availability of rare earth metals and yet the Chinese have us by the jugular. Rare earth metals are essential to all electronics manufacturing and to the emerging alternative energy industry itself. Imagine that, the same tax/fee policy you recommend is now the single largest impediment to the development of the alternative energy industry because policies like yours killed the US rare earths mining industry which was critical to the alternative energy industry emergence. Karma is a bitch, isn’t it Commissioner. The mining industry made this state what it is, its one of the largest employers, one of the largest contributors to the arts and the development of our state physical infrastructure, but you want to increase their operating costs, thereby squeezing their operating margins in an inelastic globalized market for copper which will further make our foreign competitors stronger. Of course, that will lead to further failure of the US economy. People like you are an impediment to the recovery of the US economy and its ability to become competitive in the global marketplace. Thank God we had four other Commissioners that have a better understanding than you of what it takes to get back on our feet in a global marketplace for essential commodities.

  2. Tiny Elvis says:

    Here, here Rick.
    This coming just as Morenci mine is announcing it is hiring for 400 jobs as well. In a town of less than 2,000 people, Newman’s proposition would end this already struggling town.

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