Council’s Cepand Alizadeh Quoted in AZ Family: Arizona Corporation Commission repeals renewable energy standard
The Arizona Corporation Commission voted unanimously Wednesday to repeal the state’s Renewable Energy Standard and Tariff, known as REST, saying the regulations are no longer needed.
The commission approved the REST rules 20 years ago. They required regulated electric utilities to generate 15% of their energy from renewable resources by 2025.
Commissioners said utilities have exceeded the REST threshold and that the rules are now outdated. They also claimed utilities have collected more than $2 billion in REST surcharges from customers since the standard was established in 2006.
Commission Chair Nick Myers said repealing REST does not mean renewable energy will disappear.
“Any generation source, whether it be wind, solar, natural gas, whatever, is going to have to bid for their place in the market on an even playing field,” Myers said.
Myers also pointed to Arizona Public Service (APS) signing a 30-year contract with Solana Solar in 2013 as an example of costs he said are no longer justified.
“The Solana plant is basically providing energy at 15 cents a kilowatt-hour when the rest of solar these days are around 2 to 2 1/2 cents a kilowatt-hour,” Myers said.
A handful of people attended the meeting to oppose the repeal, including Cepand Alizadeh with the Arizona Technology Council.
“Companies from all across the U.S. (and) all across the world are setting up shop here in our state because of our friendly regulatory environment,” Alizadeh said.
Alizadeh said the repeal sends the wrong message to businesses considering Arizona.
“I have a feeling that in business journals and business magazines in other states across the country, headlines are going to read: Arizona repeals renewable energy standards,” Alizadeh said. “They might just see that and say, you know what, maybe I’m not welcome in Arizona.”
In August, APS announced it had modified its goal of using only clean energy by 2050 and is investing in natural gas. The utility announced it is committed to spending $7.3 billion over 25 years on gas supply rights for the proposed Transwestern gas pipeline.
When the commission voted to initiate the REST repeal in September, Arizona Attorney General Kris Mayes released a statement in opposition, saying a repeal could lead to higher electricity bills and a less reliable power grid.
Arizona’s Family is awaiting a response from the attorney general’s office to a request for comment following Wednesday’s final commission vote.