Arizona regulators have voted in favor of initiating a process to cancel the mandate, which requires at least 15 % utility energy supply by 2025.
The Arizona Corporation Commission (ACC) voted unanimously (5-0) directly (5-0) during the open meeting of August 14, 2025 to take the next step to cancel the renewable energy quality and tariff (REST) rules (AAC Title 14, Chapter 2, Article 18). These rules were established by the Commission in 2006 and requires the utility of electricity to generate a certain percentage of their electricity from renewable resources, eventually reaching 15 % by 2025. As per the requirement of renewable energy, 30 % should come from renewable energy resources distributed by 2025, after which there is a small amount of need in previous years. The remaining rules allow consumers to receive tariffs for public facilities for implementation of the raz tariff.
“The idea that the deployment of renewable sources in Arizona will be stopped, if the rest is canceled, it is the worst punishment and rotation,” said ACC Chair Kevin Thomson. “If renewable sources are really cheap and reliable options, because we often remind us by advocating, the generation technology can overcome itself without the need for mandate, which has increased millions of dollars of extra costs every year.”
The ACC said that Arizona’s two largest regulated electrical utility has already met or exceeded the remaining rules. The Arizona Public Service Company (APS) reports that about 19 % of its energy portfolio are renewable energy sources in 2024, with 13 % in 2023. Tixon Electric Power Company (TEP)- Reports say that its energy portfolio contains about 29 29 %, including renewable sources in 2024, which are more than 27 % in 2023.
“When the commission begins to review the recovery of the rules of rest, we will treat all kinds of electricity equally and now renewable sources will stand on its own,” said Commissioner Renee Lopez, said. “I am a strong believer that all the power generation options should remain and it should be considered in the utility departments. Arizona’s diverse energy portfolio is moving forward.
The Commission pointed to the case of Solana Generating Station near the Gail Band, which went online after the rest of the rules. The APS told the commission that it had signed a 30 -year contract in 2008 with the facility, which went online in 2012, and then agreed to pay $ 0.15 per kilowatt kilowatt for energy. Currently, the APS says the average market price of energy purchased by all source applications for proposal (RFPS) is between $ 0.02- $ 0.03 per kW. The ACC says the remaining rules on Arizona’s bills since 2006 have resulted in surcharges of about $ 2.3 billion.
On the other hand, the Environmental Organization, Sierra Club, stressed that the rest has been a “great success”. The organization says Arizona’s utility has permanently increased its part of the renewable generation since 2007. From 2007 to 2020, the rest invested about $ 12 billion in clean energy in Arizona and gained public benefits of about $ 2 billion. These benefits include “more affordable electricity and low -cost generations such as coal and gas, increase investment in Arizona business and jobs, reduce technology costs, water saving, and reduction in air pollution.” Includes “
Sandy Sea, director of the Sierra Club Grand Valley (Arizona), “We will damage our water and our health with a commission’s misleading and short -lived eyes to cancel renewable energy quality and tariff rules.” “These laws have helped support the significant development of solar and air -like, cheap energy sources, which are now among the lowest cost of electricity sources in Arizona. Clean energy provides thousands of jobs for our communities and many more economic and precision benefits, because we are clearly promoted to fulfill their promise. Can’t meet, we cannot meet the monopoly, keep them accountable to the payers and the families of Arizona.
“Today’s vote is the first step to cancel the rest of the rules, which has artificially promoted the cost of energy in Arizona since 2006,” said Commissioner Li Murakiz Patterson. “I have heard about the importance of reliable energy at the very affordable rates by rate pears across the state. That’s why I support the ‘all the above views’ about my energy generation and support the use of an all -source RFP. Our state is very clean and clean and cleaned by them. Like Microsoft, Microsoft and Tech companies are the source of energy that affects future energy portfolio for our regular utility and based on a low cost of solar energy, I am sure that renewable energy will lead to renewable energy development.
The ACC must file a notice of opening a document to the Foreign Office by the Secretary of State by September 19, 2025, and the Commission will hold three public commentary sessions in connection with the cancellation of the remaining rules.
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