On November 13, 2020, Arizona utility regulators (Arizona Corporation Commission) approved new clean-energy rules on Friday that will require electric companies to provide 100% carbon-free energy by 2050, with interim benchmarks between now and then. The new rules did not include a specific requirement for renewable energy.
Amanda Ormond’s summary (link to Arizona Central article about the action follows):
Arizona’s comprehensive energy rules package passed 4-1, by votes from Republicans Chairman Burns and Commissioners Dunn & Marquez-Peterson and Democratic Commissioner Kennedy on November 13, 2020. This vote sets off the formal public publication process, which is expected to result in rules confirmation next year. The rules will require regulated electric utilities (APS and TEP) to achieve the following:
- a 100% reduction in carbon emissions by 2050, below a baseline average of 2016-2018 emissions, 75% by 2040 and 50% by 2032;
- a demand side resource capacity equal to 35% of the utility’s 2020 peak demand with 1.3% annual energy efficiency, based on a three-year average;
- energy storage equal to 5% of utility’s 2020 peak demand by December 31, 2035 with 40% to be from customer-owned or customer-leased distributed storage; and
- preference for purchase of clean energy from Tribal and coal-impacted communities.
- development and commission approval of load forecasts and needs assessment that will take into account plant retirements;
- an All Sources Request for Information (ASRFI) process for utilities to use to develop resource portfolios;
- a Resource Planning Advisory Council (RPAC) made up of NGOs, consumers and industry representatives to review all aspects of the new planning and procurement process, including the ability to protest utility actions; and
- approval of, rather than just acknowledging, a resource portfolio and a five-year Action Plan that must be followed by utilities.
- Rules did not include a specific requirement for renewable energy.
- Provisions for customer storages are the first in the country.
- This carbon policy and rules package was supported by a Republican-led, 4-1 Republican/ Democrat commission. While the final vote will be after the required public comment period and the seating of two new commissioners, approval is expected.
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