In 2010, the Arizona Corporation Commission adopted Energy Efficiency Standards that required they utilities that the ACC regulates (e.g. APS, TEP) to steadily reduce energy waste. The rules called for the utilities to achieve annual energy savings equivalent to 22% of their previous year’s retail energy sales by 2020.
They were directed to meet these goals through programs like weatherization, high-efficiency lighting and appliances, load management, and demand-response tools to reduce peak demand.
It was working. For every $1 people invested in energy efficiency, Arizonans saw nearly $4 in benefits, a return on investment that is difficult to match in any other energy resource.
Over time, these standards saved families hundreds of millions of dollars, reduced stress on the grid during sweltering summer months, and cut down on the need for building more methane burning power plants.
Despite the Rules’ success, the ACC voted unanimously Wednesday to repeal the Electric Energy Efficiency Rules.
The Commissioners justified their repeal by arguing that the rules “force ratepayers who don’t use energy efficiency programs to foot the bill for those who do.” This ignores the fact that energy efficiency saves money for all customers by reducing the need for new, expensive power plants and transmission infrastructure.
We opposed the Commission’s action, urging the ACC to modernize them, cut unnecessary administrative costs while keeping the benefits.
The repeal won’t take effect immediately but once finished in a few months utilities will stop incentivizing ratepayers to save energy. Instead, they’ll continue to focus on more and more methane burning power plants to generate the electricity that efficiency practices spurred on by the efficiency standards had been saving.
But – voters put these commissioners in place, so the majority of Arizonans must not care about energy efficiency or the constant increase in their electricity bills.