Arizona Corporation Commission Passes the Buck on Energy Conservation Policies That Would Save Customers Money

Arizona PIRG Education Fund

A huge opportunity was missed today by utility regulators at the Arizona Corporation Commission to extend and expand Arizona’s successful Energy Efficiency Standard, which was adopted with bipartisan support in 2010. The policy has delivered more than $1.4 billion in net economic benefits for utility customers of Arizona Public Service (APS), Tucson Electric Power (TEP), and UNS Electric.[1]

Energy efficiency in Arizona is working. When we do more with less energy, we save money, create more jobs, clean up polluted water and air, and make our homes and businesses more comfortable and safe.

●       From 2010-2019, every $1 of ratepayer money invested in APS and TEP efficiency programs returned ~$3.92 in total benefits to all utility customers.[2]

●       Efficiency programs support more than 40,000 jobs across our state, including more than 28,000 jobs in Phoenix and 6,000 jobs in Tucson.[3] These jobs pay well, are local, and are in hands-on fields like installation so they cannot be easily outsourced.

●       Energy efficiency is the cheapest, most competitive option we have, costing four-to-thirty times less than other power sources.[4]

“Arizona’s current efficiency requirements expire at the end of this year,” said Ellen Zuckerman, Arizona Representative for the Southwest Energy Efficiency Project. “We have barely begun to scratch the surface of what energy efficiency can do for the state. We must continue to invest in what has been proven to work and immediately extend the Commission’s policy by requiring at least 35% savings by 2030.”

Diane E. Brown, Executive Director of the Arizona PIRG Education Fund said, “Many ratepayers in Arizona have been struggling to pay their electricity bills for some time. Due to the impacts of COVID-19, consumers have been hit doubly hard and are counting on the Commission to provide financial relief.” Brown added, “Energy efficiency provides short and long term savings for our wallets and certainty for households and businesses while also providing benefits to air quality and public health. Arizona’s Energy Efficiency Standard is one of our state’s most successful policies and should be extended and expanded to 35% by 2030 in order for ratepayers to reap continued benefits. ”

“Arizonans are facing the worst public health crisis of our time,” said Cynthia Zwick, Executive Director of Wildfire. “Now is the time for the Commission to stand up for Arizona’s most vulnerable customers by doubling down on energy efficiency and providing dedicated offerings for struggling Arizonans.”

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[1] 2010-2019 Annual Demand Side Management Reports of APS, TEP, and UNS Electric filed with the Arizona Corporation Commission

[2] 2010-2019 Annual Demand Side Management Reports of APS and TEP filed with the Arizona Corporation Commission

[3] Environmental Entrepreneurs, Energy Efficiency Jobs in America: Arizona: https://www.e2.org/wp-content/uploads/2018/09/ARIZONA-Dist.pdf

[4] See: 2020 IRP Tucson Electric Power, Resource Cost Comparison Page 23: https://docket.images.azcc.gov/E000007291.pdf