SCIP plans to transfer its electricity customers to other suppliers

A federal utility provider with thousands of customers in central Arizona is exploring possible ownership options with other utility providers.

ABC15 Investigators have reported repeated power outages on the San Carlos Irrigation Project, a utility provided by the Bureau of Indian Affairs. Dozens of people have sent emails expressing similar frustrations about the repeated power outages this summer — ranging from brief interruptions to more than 20 hours without electricity.

SCIP does not generate its own electricity because, according to the bureau, it no longer has access to enough water to generate hydroelectric power. Instead, it buys electricity from the Western Area Power Administration and the Southwest Public Power Agency’s power pool and sells it directly to more than 13,000 customers.

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

In a statement, a spokesperson wrote: “The BIA wishes to transfer ownership of the reservation facilities to the Gila River Indian Community and the San Carlos Apache Tribe.”

The BIA also has thousands of customers who do not live on tribal lands.

“We will also work with Arizona’s public and private electric utilities regarding the 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.

“If one or both tribes decide not to assume ownership of facilities on the reservation, the BIA will work more closely with public and private electric utilities to provide services on the reservation,” the spokesperson said.

The BIA views this initiative as a potentially major economic development for tribes or other stakeholders.

“Transferring ownership to tribes, other stakeholders or private utilities could also lead to greater efficiencies and cost savings for customers,” the spokesperson said.

Power outages not only impact families, but also essential emergency services.

Steven Kerber of the regional fire and rescue department says the power outages are affecting them, too, from automatic doors not opening for fire trucks to their high-speed internet.

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

The regional fire brigade is funded by the subscriber owners, so their budget is tight.

“A large portion of our funding goes to funding full-time firefighters and paying salaries, as well as covering our overhead,” Kerber said.

Regional fire and rescue departments do not receive taxpayer money and are not contracted by a government agency like the county.

Kerber said they don’t have the extra funds for generators to run everything they need.

“A typical fire station is supposed to be built with backups and redundancies, and unfortunately when you’re only funded by 20% of the residents in the area and you’re trying to get grants where you can,” he said. “A lot of our focus has been on manpower, personal protective equipment and firefighting apparatus or equipment.”

Kerber has recorded at least six outages in the past 30 days.

In addition to repeated outages, electricity bills are high for them.

“It costs us $2,100 a month during the summer months.”

The BIA said federal legislation would likely be needed to move forward with changes.

ABC15 reached out to Sen. Mark Kelly’s office about the SCIP and learned that late 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 committed to working with local, tribal, and federal stakeholders to resolve them,” a statement from his office said.

COMPLETE RESPONSE FROM THE SCIP:

The BIA believes that tribes and/or other non-federal entities or utilities can more expertly provide electric service to customers and territory currently served by SCIP. To that end, the BIA seeks to transfer ownership of the on-reservation facilities to the Gila River Indian Community and the San Carlos Apache Tribe. We will also work with Arizona’s private and public electric utilities regarding the BIA’s off-reservation electric facilities and customers. Indian Affairs is consulting with tribes regarding the divestiture of SCIP power systems serving their reservations. If one or both tribes decide not to assume ownership of the on-reservation facilities, the BIA will further work with private and public electric utilities to provide service on the reservation.

This represents a major economic development opportunity for tribes or other stakeholders. Transferring ownership to tribes, other stakeholders, or private utilities could also lead to greater efficiencies and cost savings for customers.

The success of this initiative will require significant engagement from stakeholders at the federal, tribal and state levels and will most likely require federal legislation.