Arizona Sets New Standards for Renewable Energy

The Arizona Corporation Commission introduced new Renewable Energy Standards (formerly known as the Environmental Portfolio Standard) on February 27, 2006. The new rules require regulated electric utilities to generate 15 percent of their energy from renewable resources by 2025. The Commission’s Renewable Energy Standards specify what technologies qualify and allow for the addition of new technologies as they become feasible. Customers will face a slight higher Environmental Portfolio Surcharge to offset the cost of compliance; this surcharge will be capped at $1.05 per month for residential customers. If a utility does not meet the standard, however, the Commission may assess a penalty for non-compliance. The new rules also require a growing percentage of the total resource portfolio to come from distributed generation.