Arizona Corporation Commission Directs Staff to Draft Rules to Repeal Renewable and Energy Efficiency Mandates

At the Arizona Corporation Commission’s (ACC) February 6, 2024, regular open meeting, the Commission voted 4-1 to direct ACC Staff to draft rules to repeal both the Renewable Energy rules and mandates, and the Electric and Gas Energy Efficiency rules and mandates.

Based on information provided by ACC-regulated utilities, these mandates imposed by prior Commissions have cost Arizona customers almost $3 billion through their corresponding Renewable Energy Standard and Tariff surcharges (REST) and Energy Efficiency surcharges (EE).

“I believe it is time for the Commission to consider repealing these rules and mandates that appear to unnecessarily drive-up costs,” said Commissioner Nick Myers, “Utilities should select the most cost-effective energy mix to provide reliable and affordable service, without being constrained by government-imposed mandates that make it more expensive for their customers.”

Procedurally, after ACC Staff files its draft rules, the Commission will move through the rulemaking process, which includes multiple opportunities for public comment. ACC Staff will docket their draft rules in the following ACC dockets, where public comments can also be received: RG-00000A-24-0024 (Gas Utility EE), RE-00000A-24-0025 (Electric Utility EE), and RE-00000A-24-0026 (Renewable Energy).

“I look forward to hearing from the utilities, stakeholders, and customers regarding these proposed changes,” stated Commissioner Myers, “public comments are invaluable as the Commission evaluates these important issues.”

For more information about these votes, please contact Amanda Hasty at myers-web@azcc.gov.