Arizona regulators move to repeal renewable energy mandate after nearly two decades
By lauraharris // 2025-08-27
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  • The Arizona Corporation Commission (ACC) voted unanimously to begin dismantling the state's Renewable Energy Standard and Tariff (REST), a 2006 rule requiring utilities to get 15 percent of their energy from renewable sources by 2025.
  • Regulators argued that REST is no longer necessary since major utilities like APS and Tucson Electric Power have already surpassed the renewable energy goals originally set by the rule.
  • The ACC claimed REST has added $2.3 billion in costs to consumer bills and that eliminating the mandate will give utilities more flexibility to choose cost-effective, reliable energy sources.
  • As the repeal moves forward, APS and two other utilities have scaled back their clean energy pledges, shifting from a "carbon-free" target to a "carbon-neutral" goal by 2050, citing growing demand and cost concerns.
  • The ACC will hold three public comment sessions on the proposed repeal, on Nov. 10 (Tucson), Nov. 12 (phone) and Nov. 13 (Phoenix), to gather community input on Arizona's renewable energy future.
Arizona regulators have taken the first step toward dismantling the state's Renewable Energy Standard and Tariff (REST), a nearly 20-year-old rule that helped shape its clean energy transition. First adopted in 2006, REST was seen at the time as a bold step toward diversifying Arizona's energy mix and encouraging investment in solar, wind and other clean technologies. Brighteon.AI's Enoch explains that REST mandates utilities to generate a specific percentage of their electricity from renewable source. Now, with major utilities already exceeding those goals, regulators argued that the rule has outlived its purpose. "I don't think it's any longer necessary. I don't think that there's going to be any impact, or at least minimal impact, on solar. Solar or wind or any kind of renewable industry, they are self-sufficient enough as it is,"  said Arizona Corporation Commission Vice Chair Nick Myers during a Thursday, Aug. 14, open meeting. In turn, the Arizona Corporation Commission (ACC) initiated the repeal process for REST, which requires regulated utilities to source at least 15 percent of their retail electricity sales from renewable resources by 2025, in a unanimous vote. (Related: Hawaii is leading other states in generating renewable energy.) According to the ACC, compliance with REST has added approximately $2.3 billion to consumer bills over the years. By removing the mandate, the ACC contends that utilities will have more flexibility to choose energy sources based on cost and reliability, rather than state-imposed quotas. Additionally, ACC officials argue that loosening regulatory constraints will help utilities meet rising demand more efficiently. "I believe it's time for the Commission to move forward and repeal these outdated renewable mandates that have unnecessarily driven up costs for customers," Myers said. "Utilities should have the flexibility to choose the most cost-effective energy mix to deliver reliable, affordable service, without being burdened by government-imposed rules that ultimately increase costs for customers." The ACC has scheduled three public comment sessions to hear from Arizonans about the potential repeal. These will be held on Nov. 10 in Tucson, Nov. 12 via phone and Nov. 13 in Phoenix. The sessions will allow residents, industry leaders and environmental groups to weigh in on the future of renewable energy policy in Arizona.

APS and two other state utility scale back from carbon-free pledge

As Arizona regulators move to dismantle the state's renewable energy standard, three utilities, including Arizona Public Service (APS), have quietly rolled back their most ambitious clean energy goals due to unprecedented energy demands driven by rapid population growth and economic expansion. APS, which serves more than 1.4 million customers, is no longer pledging to become carbon-free by 2050. Instead, the company now aims to become carbon-neutral by mid-century – a shift that marks a notable retreat from its previous climate commitments. "The company is updating its clean energy goals from an aspirational 'zero-carbon' approach to an aspirational 'carbon-neutral' approach by 2050," said APS parent company Pinnacle West in its second-quarter earnings report released Aug. 6. Pinnacle West Chairman, President and CEO Ted Geisler echoed a similar stance. "Our mission is to reliably serve customers at the lowest cost possible. To do that, we need to integrate the most reliable and cost-effective resources available to us to meet Arizona's fast-growing energy needs." Learn more about power sources and how they affect society at Power.news. Watch this Fox Business report about President Trump pursuing a "huge" energy project in Alaska.
This video is from the NewsClips channel on Brighteon.com.

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Sources include: UtilityDive.com AZCC.gov Brighteon.AI AZFamily.com SolarCell.com Brighteon.com
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