The Arizona Corporation Commission voted unanimously to repeal the state’s nearly two-decade-old Renewable Energy Standard and Tariff Rules, which required utilities to source at least 15% of their electricity from renewables, with a portion from distributed solar. Commissioners argued that the mandate is outdated and burdens utilities with unnecessary rules, but provided little evidence that it increases costs. The repeal comes despite data showing the program drove billions in clean energy investments, saved water, reduced pollution, and generated more than $2 billion in net benefits for customers of Arizona Public Service (APS) and Tucson Electric Power. Advocates warned that without the mandate, Arizona risks losing its only enforceable mechanism to track renewable energy credits and prevent greenwashing.
Opposition to the repeal was broad, with hundreds of public comments, petitions, and organizations urging the ACC to keep the standard. Critics pointed out that solar is especially valuable in Arizona because of the state’s abundant sunshine and water savings compared to fossil fuels. They also noted that APS, the only major utility in support of the repeal, simultaneously abandoned its 2050 carbon-free goal and announced a $7.3 billion natural gas project, raising concerns about higher future rates and greater dependence on imported gas. Arizona Attorney General Kris Mayes signaled the move could face legal challenges, arguing that the decision was speculative, unsupported by evidence, and a violation of the commission’s duty to ensure just and reasonable rates.
