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Utility Dive:  Arizona Regulators Toss 3-Year Effort for 100% Clean Energy Mandate

Posted by Iulia Gheorghiu on May 7, 2021

Utility Dive outlined Arizona regulators move to toss 100% clean energy mandates, quoting AEE’s Shelby Stults on the disappointment. Read snippets below and the full article here.

The Arizona Corporation Commission (ACC) voted down its proposed clean energy rules at Wednesday's open meeting, ending a three-year collaborative process with broad stakeholder and utility support to transition the state's generation to 100% clean resources by 2050.

The rules were rejected 3-2 after commissioners approved an amendment from Commissioner Justin Olson that changed the clean energy mandates into goals, making the rules less enforceable. Olson proceeded to vote against the final package, noting in the hearing that he preferred a free market solution to resource choices in the state…

The rejected rules included measures to increase accountability for regulated utilities, demand-side resource standards and other reforms. The rules created a requirement for regulated utilities to add enough energy storage by 2035 to make up at least 5% of their 2020 peak demand, stipulating that at least 40% of that storage needed to be customer owned or leased.

Some stakeholders hope certain elements can still move forward, by being addressed separately, as "a way to kind of piecemeal see more positive energy rules move forward," said Shelby Stults, Arizona state policy lead at Advanced Energy Economy.

One example is the proposed aggregation tariff for distributed demand-side resources, which would provide aggregate compensation for solar-plus-storage for residential and commercial customers. The tariff is currently proposed in APS' ratemaking docket.

"We're really excited to see APS taking the time to really work with stakeholders and listen to how they can make this the best tariff they possibly can to both compensate for locational value and encouraging more participants to invest in distributed energy resources to benefit the grid and all of their energy customers," Stults said.

The ACC's utilities division confirmed during the open meeting that they are happy to work with the commission to open a docket for electric vehicle items, based on discussions of the clean energy rules proposal, which was a promising sign, according to Stults. Regulators are also continuing work on TEP's proposed fast-charging tariffs.

Read the full article here.

Topics: Regulatory, AEE In The News, Arizona