Arizona scraps renewable energy mandate after nearly two decades
The Arizona Corporation Commission (ACC) has voted to eliminate the state’s renewable energy standard, marking a major shift in its power policy after almost 20 years in place.
The decision ends the Renewable Energy Standard and Tariff (REST), a rule adopted in 2006 that required utilities to generate a portion of their electricity from renewable sources. Under the mandate, major providers such as Arizona Public Service and Tucson Electric Power were expected to reach 15% renewable generation by 2025.
Commissioners argued that market conditions have changed significantly since the policy was introduced, making the requirement no longer necessary. They also pointed out that customers have paid more than $2.3 billion in surcharges tied to the program, contributing to higher electricity bills.
According to the ACC, removing the mandate will give utilities greater flexibility to procure the lowest-cost energy available, rather than meeting fixed renewable quotas, potentially easing costs for consumers.
The move has sparked backlash, however. Arizona Attorney General Kris Mayes has challenged the decision, arguing that regulators failed to complete a required economic analysis to assess the impact on consumers and businesses.
Critics also warn that eliminating the standard could slow future clean energy development, as the mandate had helped guarantee demand for renewable projects. While existing facilities will continue operating, the removal of the requirement eliminates a key driver behind the state’s expansion of solar and other renewable energy sources.
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