Advanced Energy Perspectives

This post was updated Feb. 17, 2021 at 6:31 PM to reflect updated action on another bill, HB2737, that intends to add duplicative ACC oversight. See last section.

Arizona Legislators have the Arizona Corporation Commission (ACC) in the crosshairs this legislative session with a series of bills aimed directly at stripping commission  authority. HB2248 and SB1175 revoke the authority of the ACC to adopt or enforce policy related to electrical generation resources made after June 30, 2020. The bills purport to clarify the constitutional authority of the commission to regulate utilities, in the process stripping the commission of its  authority to create and enforce energy policy. Indeed the real purpose of these bills seems to be squashing the 100% clean energy rules the ACC gave initial approval to last fall and are now in the process of finalizing.

Advanced Energy Economy (AEE) and Arizona Public Service (APS) have been working together to identify solution opportunities to help APS achieve its ambitious goals for clean energy and support electrification of the transportation sector. This collaboration is known as the Arizona Clean Energy Future project. In January 2020, APS announced a goal to deliver 100% clean, carbon-free electricity to its customers by 2050. APS set nearer-term targets of reaching 65% clean energy by 2030, with 45% coming from renewable energy. APS also plans to end all coal-based generation by 2031, seven years sooner than previously projected. To help achieve these targets, AEE and APS discussed ways AEE member companies could help in advancing towards these targets. Bringing together product development and creative thinkers from our companies has allowed us to leverage their expertise and brainstorm possible solutions, finally narrowing them down to 10.

What is the price of political cronyism? High, when it comes to paying power plants that are not needed to keep the lights on, just to exist. But that is what the Trump Administration is apparently getting ready to do. Or at least trying to do – an earlier attempt to do so was rejected by regulators, most of them appointees of President Trump. Not taking no for an answer, the Administration has decided to go bigger, with a bigger price tag. How much bigger? That’s what we wanted to find out.

Note: Several links in this article reference documents housed in Advanced Energy United's (previously Advanced Energy Economy)'s energy policy software, Insight Engine™. To enhance your reading experience, click here and sign up for a free 14-day trial of Insight Engine™.

Arizona has some of the most abundant solar resources in the country. The state’s renewable energy standard (RES) of 15 percent by 2025 has helped Arizona generate more solar power than any state in the country save California, and the most solar energy per capita. Rooftop solar is particularly popular in Arizona because of the 30 percent distributed generation (DG) carve-out, half of which is reserved for residential rooftop solar. The thriving solar market in Arizona has benefited from a combination of the state’s unique RES and robust competition among many solar companies active in the state.