A packed Florence Gardens Community Center hosted representatives from seven public power utilities Thursday evening, as they presented plans to take over electrical service from the Bureau of Indian Affairs San Carlos Irrigation Project (SCIP). The initiative aims to address long-standing issues of reliability, rate volatility, and aging infrastructure that have plagued SCIP customers.
The Problem with Federal Power
Unlike the public power utilities present at the meeting, which operate as not-for-profit entities with local control and oversight, SCIP operates under federal administration through the Bureau of Indian Affairs (BIA). This federal structure creates unique challenges that private and public utilities don’t face. TRICO Electric Cooperative CEO Brian Heithoff explained that SCIP’s challenges stem from federal limitations on power purchasing. Unlike public utilities that can buy or build generation facilities in advance of needs, SCIP faces restrictions on how far ahead they can purchase power. Additionally, federal funding constraints have led to deferred maintenance and infrastructure investment.
History of Community Action
The meeting follows a series of community actions that began with a September 2023 gathering at the Florence Library, where residents first raised concerns about SCIP’s reliability issues, rate volatility, and aging infrastructure. Newly elected Pinal County Attorney Brad Miller helped initiate the recent call for divestiture at that first meeting.
Current Issues
During Wednesday’s meeting, residents shared ongoing frustrations, with one describing 13-14 hour power outages during 120-degree summer days and frequent service interruptions blamed on vehicles hitting poles. Another resident described a neighbor who has been running their home on a generator for three years after being quoted an amount for a new power connection beyond their means, while others reported monthly bills reaching $500 for 2,000-square-foot homes even without heating, raising concerns about affordability for families and those on fixed incomes. Among all the public comments and questions raised during the meeting, not a single resident spoke against the proposed divestiture from federal control.
Public Power Leadership
The meeting brought together leaders from seven public power utilities:
- CEO Phil Cook, Graham County Electric Co-Op
- Serves 10,000 electric meters
- General Manager Ken Robbins, Electric District 2
- Serves over 6,000 meters
- General Manager Brian Yerges, Electric District 3
- Serves 36,000 meters primarily in Maricopa
- Deputy General Manager Derek McEachern, Electric District 4
- Operates within Eloy and surrounding rural areas
- CEO Brian Heithoff, TRICO Electric Cooperative
- Serves areas around Tucson with 160 employees
- General Manager Grace Garcia, Hohokam Irrigation and Power
- Serves more than 2,000 customers
- General Manager Ken Stock, Gila River Indian Community Utility Authority
- Serves approximately 3,500 customers
The San Carlos Apache Telecommunications Utility, which would serve SCIP accounts on the San Carlos reservation, is also part of the working group but did not have representatives at the meeting.
The Path Forward
Heithoff, whose cooperative marks its 80th anniversary this year, outlined four major steps in the transition process:
- A comprehensive study to inventory SCIP’s facilities, assets, finances, employee situations, and customer locations
- Legislative action requiring Congressional engagement
- Funding for infrastructure investments
- The actual divestiture to transfer control
Progress and Challenges
Progress has already been made. The utilities have organized a working group, engaged stakeholders including Pinal County and the Arizona Power Authority, and developed an outline for the necessary study. The BIA has also announced it is developing options for SCIP’s divestiture and seeking to engage with Arizona electric utilities. At the state level, Representative Teresa Martinez has introduced House Concurrent Memorial 2009, urging Congress to enact legislation divesting the United States of the SCIP electric system and provide funding for needed improvements.
One significant challenge discussed was service coverage for areas east of Florence toward Riverside, which currently falls outside the existing service territories of the represented utilities. Heithoff acknowledged this gap, stating, “We know that’s an issue. It’s our objective to make sure that all SCIP customers have a place to go.”
During the Q&A session, all public comments expressed support for the transition, though residents voiced concerns about the timeline. “I assume you know that you are currently in a 55 and older community here,” one resident noted. “This plan that you have going forward that you say could take 5, 10, 15 years sounds like a wonderful plan for my nieces and nephews, but I’m not really sure what it’s doing for the current customers here.”
Heithoff responded by emphasizing the need for community pressure on legislators to create urgency. “Making sure that our legislators understand that there’s a sense of urgency by all of us to work on a quick solution,” he said, while noting that even with funding secured, upgrading hundreds of miles of line takes considerable time. Most of the public power companies, except for tribal utilities, confirmed they offer solar buyback programs – a service currently unavailable through SCIP.
Moving Forward
To support the transition, Heithoff outlined several ways residents can help:
- Express support through their community group
- Attend future update meetings
- Provide letters of support when needed for legislative efforts
- Stay engaged with federal representatives, including Senators Kelly and Gallego and Representatives Ciscomani and Crane
“We need to know that you’re behind us,” Heithoff explained, noting that while the process will take time, community support will be essential for working with legislators.
The project’s future progress will depend heavily on federal legislation and appropriations. Residents can stay informed about developments and upcoming meetings by joining the mailing list at publicpower4scip.org, following the Public Power 4 SCIP Facebook Group and YouTube channel.
Editor’s note: The headline of this article was updated from “SCIP Service Area to Shift to Public Power Under New Plan” to better reflect the legislative approval required for the plan’s implementation.
