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SCIP to consider transferring electric customers to other providers

Consideration comes after frequent power outages
Power lines, electricity
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UPDATE: On Friday, Arizona Attorney General Kris Mayes sent a letter to the Assistant Secretary of Indian Affairs Department of Interior (DOI), the Director of the Bureau of Indian Affairs (BIA), and the Regional Director of the Western Regional Office of Indian Affairs, requesting they "take immediate action to address the San Carlos Irrigation Project’s ('SCIP') well-known electric service reliability issues."

In the letter, Mayes implored the Department of the Interior and the Bureau of Indian Affairs to "take immediate action to address these service interruptions."

"Reliable electricity is critical, not just for comfort but for the health and safety of SCIP's customers during extreme summer heat," Mayes wrote. "I am particularly concerned that SCIP's reliability issues are exposing its customers to avoidable, potentially deadly risk during the hottest months of the year."

Mayes' letter cited ABC15's recent reporting from August 22 and September 5 calling attention to "dangerous conditions for SCIP customers."

ABC15 began looking into power outages in Central Arizona after hearing from dozens of people by email who expressed frustrations about repeated power outages this summer, which last anywhere from short flickers to more than 20 hours without power.

In Friday's letter, Mayes requested that the Department of the Interior fund and publicize cooling centers, and ice giveaways and provide bill credits to SCIP customers, among other measures meant to "protect SCIP customers while the Department evaluates asset and customer transfers to other electric utilities."

Read the entire letter below:

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A federal utility provider with thousands of customers across central Arizona is looking at possible options to ownership to other utility providers.

The ABC15 Investigators have been reporting on repeated power outages with the San Carlos Irrigation Project, utilities provided by the Bureau of Indian Affairs. Dozens of people have sent in emails with the same frustrations about repeated power outages this summer — they last anywhere from short flickers to more than 20 hours without power.

SCIP does not generate its own power because the bureau said they do not have access to enough water to generate hydropower anymore. Instead, they buy power from the Western Area Power Administration and the Southwest Public Power Agency power pool and re-sell it directly to more than 13,000 customers.

A spokesperson for the Bureau of Indian Affairs told ABC15 that it believes that other tribes or other non-federal entities or utilities would better serve customers.

In a statement, a spokesperson wrote, “It is BIA’s desire to transfer ownership of the on-reservation facilities to the Gila River Indian Community and the San Carlos Apache Tribe.”

The BIA also has thousands of customers who are not on tribal land.

“We will also engage private and public electric utilities in Arizona regarding BIA’s off-reservation electric facilities and customers," the spokesperson said.

ABC15 has learned that the BIA is consulting with tribes about the divestiture of SCIP Power Systems serving their reservations.

“Should one or both of the Tribes determine that they will not assume ownership of the on-reservation facilities, the BIA will further engage with private and public electric utilities to provide services on-reservation," the spokesperson said.

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The BIA calls the move a potential major economic development for tribes or other stakeholders.

“Transferring ownership to the Tribes, other stakeholders, or private utilities might also lead to greater efficiency and cost-savings for customers," the spokesperson said.

Power outages are not only impacting families but critical emergency services as well.

Steven Kerber with Regional Fire and Rescue says the power outages impact them as well from the automatic doors that won’t open for the fire trucks, to their high-speed internet.

“We also have our radio, our vital communications to our emergency dispatcher in Phoenix has to communicate through the internet to our radio to dispatch us to calls locally,” he said.

Regional Fire and Rescue is funded by homeowners who are subscribers so their budget is tight.

“A lot of our funding goes to fund the full-time firefighters and pay payroll, cover our overhead expenses,” said Kerber.

Regional Fire and Rescue does not receive taxpayer dollars nor are they contracted with any government agency like the county.

Kerber said they have not had the extra funds for the generators that are needed to run everything they need.

“Any typical fire station is supposed to be constructed with backups and redundancies, and unfortunately, when you're funded by just 20% of the residents in the area and you try and get grants where you can,” he said. “Much of our priority has been focused on manpower, personal protective equipment and fire apparatus or fire equipment.”

Kerber has documented at least six outages in the last 30 days.

Along with the repeated outages, the utility bills are high for them.

“It's costing us $2,100 a month during the summer months.”

The BIA said it would likely take federal legislation to move forward with any changes.

ABC15 reached out to Senator Mark Kelly’s office about SCIP and learned that at the end of last month, Kelly renewed his request for detailed information about the BIA’s divestment plan and the work being done with tribes and stakeholders.

“Senator Kelly understands the urgency of these issues, particularly the combination of service disruptions and high bills, and remains dedicated to working with local, tribal, and federal stakeholders to address them,” a statement from his office read.

SCIP FULL RESPONSE:

BIA believes Tribes and/or other non-federal entities or utilities can more expertly provide electric service to the customers and territory currently served by SCIP. To that end, it is BIA’s desire to transfer ownership of the on-reservation facilities to the Gila River Indian Community and the San Carlos Apache Tribe. We will also engage private and public electric utilities in Arizona regarding BIA’s off-reservation electric facilities and customers. Indian Affairs is consulting with the Tribes regarding the divestiture of SCIP Power Systems serving their reservations. Should one or both of the Tribes determine that they will not assume ownership of the on-reservation facilities, the BIA will further engage with private and public electric utilities to provide services on-reservation.

This is potentially a major economic development opportunity for both Tribes or other stakeholders. Transferring ownership to the Tribes, other stakeholders, or private utilities might also lead to greater efficiency and cost-savings for customers.

The success of this initiative will include extensive engagement among the affected Federal, Tribal, and State parties and will most likely require federal legislation.