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PUC Proceeds To Repeal State’s Renewable Energy Standard
In a press release, the Arizona Corporation Commission announced that it has voted unanimously to begin the process of repealing the renewable energy standard and tariff (aka REST), which required electric the larger utilities to deliver 15% renewable energy by 2025.
In the order Commission Staff was directed to file a Notice of Rulemaking Docket Opening with the Office of Secretary of State by September 19, 2025. The Commission also announced that it will hold three public comment sessions regarding the repeal of the REST Rules on November 10, 2025, in Tucson, November 12, 2025, telephonically, and November 13, 2025, in Phoenix. Interested persons may file written comments with the Commission’s Docket Control or attend one of the public comment proceedings.”
Excerpts from the press release:
“The Arizona Corporation Commission voted unanimously during the August 14, 2025, Open Meeting, to direct Staff to take the next step to repeal of the Renewable Energy Standard and Tariff (REST) Rules (A.A.C. Title 14, Chapter 2, Article 18). The rules were established by the Commission in 2006 and require electric utilities to generate a certain percentage of their electricity from renewable resources, reaching 15% by 2025.
“The idea that the deployment of renewables in Arizona will come to a halt if REST is repealed is doom and gloom fear-mongering at its worst,” said Chair Thompson. “If renewables are truly the most affordable and reliable option, as we are frequently reminded by advocates, the generational technology should be able to prevail on its own without the need for mandates that have added millions of dollars in extra costs for ratepayers each year.”
As reported previously, the rule was set by the Arizona Corporation Commission in 2006. The Commission and the larger utilities argue that the repeal process must begin because the renewable targets have already been surpassed. Similarly, the ACC notes the rule is unnecessary today because the targets have already been met. The Commission also expresses concern that mainlining the existing rule could lead to increased energy costs. However. renewable energy providers argue the REST rules remain relevant given Arizona’s growth and rising electricity demand.
Previously on January 23, 2024, in Decision No. 79246, the Arizona Corporation Commission 17 (“Commission”) approved a Five-Year Review Report addressing, inter alia, the Renewable Energy 18 Standard and Tariff Rules codified in Arizona Administrative Code (“А.А.С.”) Title 14, Chapter 2, 19 20 21 Article 25 (“REST Rules”). The Decision directed the Commission’s Utilities Division Staff (“Staff”) to open a new rulemaking docket for the purpose of engaging in a rulemaking to modify the REST Rules.
Decision No. 81451
RE-00000A-24-0026
(In The Matter Of The Proposed Modifications To The Renewable Energy Standard And Tariff Rules – Article 18.)
