The Arizona Corporation Commission (ACC) voted unanimously last week to repeal the state’s renewable energy standard and tariff (REST) rules. In 2006, the state adopted a renewable portfolio standard (RPS) that required utilities to procure 15% of their energy from renewable sources by 2025, with 30% of that procured from distributed energy technologies.
The ACC stated that the REST rules had served their purpose of expanding renewable energy production in Arizona and the mandates were no longer needed.
In the last 20 years, ACC said that utilities APS, TEP and UNSE have collected more than $2.3 billion in REST surcharges from customers to meet the mandates.
“There is no disputing that Arizona’s current renewable portfolio is one of the most robust in the country and has the potential to thrive for the foreseeable future,” said Commissioner Kevin Thompson. “While some point to the REST rules as a major impetus for that success, the time has come for the renewable mandate and the customer surcharges that have cost ratepayers billions of dollars to end. Industry must find a way to capitalize on the economics of renewables and demonstrate their reliability without relying upon subsidies or forcing ratepayers to pay for mandates that have outlived their useful life.”
ACC claims that APS, TEP and UNSE have already met the RPS that requires electric utilities to generate 15% of their energy from renewable sources by 2025. Removing the customer-funded incentives will save power users money on their utility bills, ACC says.
“The REST Rules are now expired and have served its purpose,” said Commissioner Rene Lopez. “Renewable energy generation is a viable, cost-efficient source of energy and can stand on its own merit without the continuation of the REST Rules.”
