Underground Arizona is a non-profit formed to centralize information and educate the public about the rich policy, legal, and investment history of underground electric utilities in Arizona.
Problem: Information Asymmetry
Most information about the undergrounding of utilities reaches the public through the utility companies themselves and not an unbiased source. This creates a problem wherein incomplete, inaccurate, or misleading information is presented to and accepted by the public as fact.
Example 1: The utilities regularly tell the public that the only way to underground electric lines is with outside funding, like a new property tax district or funds from a municipality or business. This is inaccurate. This exact issue was litigated in the 1970s and the utilities lost at the Arizona Supreme Court in 1980. Since then, many utilities have placed or replaced underground distribution and transmission infrastructure through the normal ratemaking process.
Example 2: The utilities regularly tell the public that underground electric lines cost 10-20x more than over head electric lines. However, this is demonstrably false. Data from nearby recent comparables show an actual up front cost differential of 1-3x (see here and here). Moreover, industry analyses indicate that the cost to operate underground lines is substantially less than the cost to operate above ground lines. Therefore, the total cost of ownership of underground lines can be less than the total cost of ownership of overhead lines.
It has also become clear that not even the utility companies are aware of what other utility companies have done. Therefore, by advocating a certain way, utility company A may be undermining the interests of utility company B. A similar statement can be made for municipalities.
Solution: Information Symmetry
We formed Underground Arizona to document and share findings like these with you, the public, to help you fight for the future of your community with as accurate of information as is possible. We also hope to help the utilities and municipalities make better informed decisions.
Decisions should be made with accurate information.
Our Research
Where are underground lines in Arizona?
What does undergrounding cost?
Diminution in Property Values
RegulationsTEP Midtown Reliability Project
References