The Arizona Corporation Commission (ACC) voted unanimously last week to repeal the state’s Renewable Energy Standards and Rates (REST) rules. In 2006, the state adopted a renewable portfolio standard (RPS) that required utilities to obtain 15% of their energy from renewable sources by 2025, with 30% of that from distributed energy technologies.
The ACC stated that the REST rules had served their purpose of expanding renewable energy production in Arizona and that the mandates were no longer necessary.
Over the past two decades, ACC said utilities APS, TEP and UNSE have collected more than $2.3 billion in REST surcharges from customers to comply with mandates.
“There is no doubt that Arizona’s current sustainable 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 boost to that success, the time has come to end the renewable mandate and customer surcharges that have cost ratepayers billions of dollars. The industry must find a way to capitalize on the economics of renewables and demonstrate their reliability without relying on subsidies or forcing ratepayers to pay for mandates that have exceeded their useful life.”
ACC claims that APS, TEP and UNSE have already complied with the RPS which requires electricity companies to generate 15% of their energy from renewable sources by 2025. Removing the customer-funded incentives will save energy users money on their energy bills, ACC says.
“The REST rules have now expired and have served their purpose,” said Commissioner Rene Lopez. “Renewable energy generation is a viable, cost-efficient energy source and can stand on its own without the continuation of REST regulations.”
