Arizona repeals electric utility efficiency mandate
Arizona regulators voted to repeal the state's energy efficiency standards, citing the high cost and challenges posed by the growing energy demands of data centers and manufacturing facilities. Environmental groups and consumer advocates opposed the repeal, arguing for updated standards instead, while utilities indicated they would continue some efficiency measures voluntarily.
The Arizona Corporation Commission, an all-Republican body, voted on Wednesday to repeal the state's energy efficiency standards, which were first enacted in 2010. Commissioner René Lopez stated that the rules provided diminishing returns despite over $1 billion in utility spending and were out of step with the significant growth in energy-intensive facilities such as data centers and manufacturing plants. Arizona is a leading state for data center development, with major electric utilities predicting their load could nearly triple in the coming decades due to tech infrastructure.
Environmentalists and ratepayer advocates, including Will Greene from the Southwest Energy Efficiency Project, criticized the repeal, arguing that outdated standards should be updated rather than eliminated, especially given their potential to lower consumer bills. A staff analysis indicated that repealing the program could lead to higher energy consumption and long-term utility bill increases for residential customers. Despite the repeal, Commissioners, including Rachel Walden, noted that utilities are not prohibited from implementing their own efficiency measures and demand response programs. Tucson Electric Power spokesperson Joe Barrios confirmed the utility would continue to integrate energy efficiency and demand response into its resource planning. This decision follows the commission's unanimous vote in March to repeal renewable energy standards adopted in 2006, drawing further criticism from groups like Chispa Arizona for removing tools to ensure affordable energy.