The ACC voted to sharply reduce APS spending on energy efficiency programs. The commission slashed the utility’s proposed budget from $91 million to $41 million and eliminated incentives for most residential upgrades, homebuilder benefits and customer education materials. Commissioners argued these programs were ineffective or unnecessary subsidies funded by ratepayers.
Only a limited set of programs survived, including initiatives that support virtual power plants, smart thermostat demand response, school and tribal programs and full funding for low income weatherization and battery based energy contributions. Critics said the cuts undermine efforts to reduce energy use at a time when demand keeps rising and Arizonans are struggling to keep up with high power bills.
