Letter to Chairwoman Krisin Mayes, Arizona Corporation Commission

3 October, 2009

Chairwoman Kristin Mayes
Arizona Corporation Commission
1200 West Washington, 2nd Floor
Phoenix, Arizona
85007

Dear Chairwoman (Chairperson? I don’t know,) Mayes;


I’m writing to urge you to please vote to re-instate the electricity providers’ “free 1000 feet” policy.

As you know, APS and other electricity providers always and forever have not charged to run lines to a new residence, up to 1000 feet. In 2007 they did away with this “free 1000 feet.”

This became an issue just as we were seeing vacant land’s flat line starting to blip. A Buyer’s reaction is to lower their offering price by the amount that the provider (pessimistically) might charge them. The Seller either rejects their offer and again, nothing sells and no money moves into the community, or he takes it and we now have an abysmal comp and property values fall some more.

The developers are shaking their heads and turning towards higher density parcels, the contractors and their subs get another month in the soup lines, the small towns that depend on them and their flow of money continue to fold.

The first problem is that the amounts that the electricity providers charge are completely arbitrary, following no discernible rhyme nor reason.
Neither the developers nor contractors nor property owners can predict and budget for this expense – it has to be a surprise, apparently. Nobody can know what the charge will be until they pull a building permit.

As an example, I have 5 large parcels of land listed in Cornville. Each one of these parcels could be legally and prettily subdivided into smaller parcels, developed, and nice custom homes built on them. It’s not going to happen. It’s not going to happen because my Sellers can’t reduce the price any further and the 1000 feet charge just tipped the balance from a doable project into an idea that failed to pencil out. It can’t possibly pencil because nobody can know what the APS charge will be, and developers are not gamblers anymore.

Let me try, please, to show you the consequences of this sale going belly up.
The Seller couldn’t sell the property and so he has no money to spend in the community – the money didn’t move. Neither I, the lenders who would have funded the deal, the other agent, the title company, not the excavators nor the surveyor made any money – the money didn’t move. The architect, the contractor, the roofer, drywallers, landscapers, plumbers, electricians, painters – all of the trades involved in the building of 43 homes, none of them got a break from this horrible economy because the money didn’t move. They have no money so they won’t be going out to eat or buying new shoes or making their house payment this month.
I re-read this last paragraph and think how dramatic it sounds, but it’s true – every word. APS’ policy of charging some arbitrary but God-awful amount of money for their 1000 feet of lines killed this deal. It affected all of these people and our little community horribly.
My prospective developer buyer bought a property in the Phoenix area instead – 1000 feet of electric lines is not an issue on the property that he bought there. Again, Maricopa grins while the rural areas cry.

Rural areas are being economically pummeled by this policy change. We realize that the providers are counting on the fact that this doesn’t much affect the Great State of Maricopa, so maybe they can just continue and maybe nobody who can do something about it will understand or notice. “1000 free feet no more” does impact your outlying areas greatly, but we’re neither as visible nor as vocal.

Kristin, please. See us. Hear us. Let us also be visible. Help us, please.

Thanking you in advance for your time and attention,


Carol Anne Warren, REALTOR ®
Associate Broker, Arizona Adobe Group Realty
GRI, ABR, e-Pro, AHWD, CNE
direct to me: 928-300-9031
carolanne@adobegr.com
If you shovel the manure diligently, sooner or later you are sure to find a pony. ~Anacoana~