An Arizona lawmaker is calling for an immediate federal investigation into a utility provider that has numerous complaints of frequent power outages and unreliable service.
Congressman Eli Crane (R-AZ) sent a letter to the Department of Interior, asking the Office of Inspector General to investigate the San Carlos Irrigation Project (SCIP), which is a utility provider run by the Bureau of Indian Affairs. Crane’s district includes the area served by SCIP.
The utility company serves homes outside tribal lands in central Arizona, including portions of Casa Grande, Florence, and Apache Junction.
Crane says that the problems are escalating.
“Families and businesses across the region are experiencing repeated power outages—both planned and unplanned—that often last for extended periods, sometimes multiple days,” he wrote.
He went on to write, “I respectfully request that your office open an immediate investigation into SCIP’s operations, with particular attention to service reliability, customer communications, and long-term planning.”
In an exclusive interview with ABC15, Crane said SCIP has not been very transparent. He hopes an investigation will provide answers.
"For us to go forward and find a solution for these people, we need all the information we can get,” said Crane.
He also said that state and local partners will have to be involved in the process.
“I'm a pretty limited government guy. I don't like, you know, the federal government often getting involved in things as critical as people's power.”
Crane added that SCIP falls under the Bureau of Indian Affairs, which is under the Department of Interior, “they're responsible here, and they're clearly not doing a good job,” he told ABC15.
ABC15 has reported on repeated concerns for more than a year, including the frequent outages that leave customers frustrated.
SCIP does not generate its own power because the bureau officials 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 resell it directly to more than 13,000 customers.
SCIP has not been able to generate its own power for decades, citing a significant flood event at Coolidge Dam in 1983 that eliminated the hydropower generation facilities.
ABC15 has also reported on the need for infrastructure repairs, including concerns around what neighbors described as a ‘Frankenstein’ power pole because of how repairs were made.
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In the past, the bureau has admitted to ABC15 that it needs to improve the resiliency, redundancy, and repairability of the utility lines.
Customers have also been raising concerns around the rising cost of bills and the loss of appliances and other household items because of surges.
A spokesperson for BIA said in an email last month that they recommend customers use surge protectors. They say they are exploring whole-home surge protection options as well.
“Customers may file tort claims (SF 95) under the Federal Tort Claims Act for damages they believe were caused by SCIP,” they said by email.
Congressman Crane also asked the acting inspector general to investigate the lack of communication to customers because there is no website that gives power outages in real-time or updates about when power will return.
Crane said one Facebook group had more than 100 posts just this past week of customers describing outages, power service, and lack of communication from SCIP.
“The lack of even a basic public-facing system for outage updates demonstrates a failure to meet the most fundamental responsibilities of a utility provider,” he said in the letter.
A spokesperson for the Bureau of Indian Affairs responded on Wednesday about the call for an investigation, saying they welcome Congressional and OIG oversight so they can work together to address the root issues.
Read the full statement below:
"All customer concerns and complaints are being taken seriously, and San Carlos Irrigation Project Power Division is committed to exploring all possible avenues to improve infrastructure and services. The BIA welcomes Congressional and OIG oversight, so that we can work together to address the root issues.
Unlike other utilities, SCIP does not have the authority to borrow funds to finance repairs or capital improvements over time. The SCIP Power Division relies primarily on customer collections, not congressional appropriations, for operation and maintenance. At present, SCIP's collections are insufficient to fund all the deferred maintenance and upgrades needed. When power is lost, SCIP's small staff works very hard to restore power to all customers as quickly and safely as possible.
As we consider the necessary improvements to our infrastructure, including the construction of new transmission lines and the establishment of rapid response systems, we must also address the financial realities that SCIP faces. The call for increased reliability must be balanced with the need to manage customer costs effectively, especially given the rising energy prices that our customers have experienced. It is essential to develop a sustainable approach that allows SCIP Power Division to enhance its reliability without placing an undue financial burden on our customers.
SCIP management continues to explore divestiture of its Power Division in consultation with the Gila River Indian Community and the San Carlos Apache Tribes and in cooperation with the customer-initiated Divestiture Steering Committee."
