USA - Court affirms Arizona Commission’s Authority to establish RES

In a case that challenged one of the early and groundbreaking renewable electricity standards (RES) in the country, a county judge affirmed the Arizona Corporation Commission’s (ACC) authority to establish RES rules.

Maricopa County Superior Court Judge Joseph Heilman found that the ACC’s ratemaking authority “extends beyond setting rates and includes the promulgation of rules and regulations when the rules are reasonable and necessary steps in ratemaking.”

The state RES dates back to 1996, when the ACC established an initially modest 1.1%, mostly solar standard to become only the third state, and first state in the West, to establish an RES. The standard has since been strengthened, now set at 15% by 2025 and including energy from wind, solar,
biomass, biogas, geothermal, and other technologies.

“Arizona has an elected regulatory commission, and its consistent backing of a renewable electricity standard, for more than a decade, illustrates the strong popular support that renewable energy policies enjoy,” said Craig Cox, executive director of the Interwest Energy Alliance, an AWEA regional partner.

Challenging the RES was an advocacy group called the Goldwater Institute, which argued that the ACC had exceeded its regulatory authority in establishing the standard. But the court found that the ACC’s authority extends to the creation of rules that are reasonable and necessary steps in the
ratemaking process.

The Goldwater Institute responded to the decision by stating that it is considering an appeal.

“The decision confirms the scope of the commission’s ratemaking authority and reaffirms the commission’s efforts at providing a diverse energy portfolio,” said Commissioner Bob Stump. “The commission must continue to ensure that the rules are efficiently implemented with the best interests of the ratepayer in mind.”

For more information please contact Trevor Sievert at ts@windfair.net