Senate committee recommends Cynthia Zwick to continue leading RUCO after hearing on staffing and rate advocacy

Cynthia Zwick, the director of the Residential Utility Consumer Office (RUCO), appeared before the Arizona State Senate Committee on Director Nominations and received a unanimous committee recommendation to the full Senate to continue leading RUCO.

Zwick described RUCO as a nine‑person office (when fully staffed) that represents residential utility customers before the Arizona Corporation Commission in proceedings involving water, wastewater, electric and natural gas utilities. “We essentially perform a financial audit when rate cases are filed,” she told the committee, explaining that RUCO reviews filings, seeks additional information, prepares testimony and advocates for the interests of residential customers.

Senators focused their questions on RUCO’s capacity to handle a rising caseload, the office’s statutory scope and whether RUCO should have a broader role in resource‑planning decisions as Arizona’s grid grows. Zwick said RUCO typically intervenes in the largest (A and B) cases filed at the Commission, that staff capacity constrains the office’s ability to engage in every case, and that RUCO sometimes hires outside expert witnesses to supplement in‑house expertise.

On big‑picture questions — for example, whether RUCO should weigh in earlier on utilities’ integrated resource plans or on policy choices such as net‑zero targets and generation portfolios — Zwick said the office’s current statutory role is limited to intervening in rate cases filed with the Commission. She said expanding RUCO’s authority to participate earlier in planning processes would require legislation and that RUCO would be willing to engage should the Legislature consider such changes.

Senators pressed Zwick about formula rates, a recent Commission policy that allows certain automatic adjustments over multiple years. Zwick said RUCO does not support the shift to formula rates based on its review of other jurisdictions, and cited concerns that customers could pay more under those models and lose certain protections; she said the Commission should vet such changes through formal rulemaking.

Members also asked about utility resource planning and whether RUCO evaluates the prudency of generation portfolios (for example dispatchable versus intermittent resources). Zwick said RUCO’s role in such questions is largely limited to reviewing the prudency of investments that enter rate cases and that the office does not perform long‑range, system‑level planning analyses under current statute.

Senators expressed concern about potential overbuilding of generating capacity and the effect on ratepayers, especially under models that allow utilities to recover costs more automatically. Zwick said RUCO will scrutinize costs that come before the Commission and advocate where it believes proposals are not in residential customers’ best interests.

Committee members praised RUCO’s consumer role and recommended Zwick’s confirmation to the full Senate. The roll call recorded five ayes, 0 nos and 0 not voting.