News Summary
The Arizona Corporation Commission has voted to repeal the Renewable Energy Standard and Tariff Rules, which required utility companies to source 15% of energy from renewables by 2025. Advocates worry this decision could hinder solar energy investments and impact public health as it may lessen the growth of clean energy resources. The repeal reflects a push for energy independence without regulatory mandates but raises concerns about financial implications and air quality.
Arizona Moves to Repeal Renewable Energy Standard Mandates
The Arizona Corporation Commission (ACC) unanimously voted 5-0 on August 14, 2025, to initiate the repeal of the Renewable Energy Standard and Tariff (REST) Rules, which mandated that utility companies generate at least 15% of their energy from renewable sources by the year 2025. This decision has raised concerns among clean energy advocates regarding potential impacts on solar energy investments and public health.
The REST rules, established in 2006, required a transition to renewable energy sources, stating that 30% of the total renewable energy would need to come from distributed energy renewable resources by 2025. These rules permitted public utilities to impose tariffs on customers to cover the costs associated with implementing the RES Tariff.
Utility Companies’ Progress
According to recent reports from utility companies, Arizona Public Service Company (APS) included approximately 19% renewable energy in its energy portfolio in 2024, a notable increase from 13% in 2023. Tucson Electric Power Company (TEP) reported an even higher percentage, stating that around 29% of its energy portfolio was made up of renewable sources in 2024, up from 27% the previous year.
The ACC Chair acknowledged that repealing the REST regulations was necessary, emphasizing that solar and wind energies are capable of standing alone without mandated requirements. Commissioner René Lopez supported an approach that incorporated “all forms of power generation,” articulating a belief that renewable sources could thrive independently of regulatory mandates.
Financial Impact and Future Considerations
The ACC’s decision has been accompanied by various arguments regarding the financial implications of the REST rules. An alleged total of $2.3 billion was added in extra costs for Arizona ratepayers since the rules’ implementation. Proponents of the repeal argue that eliminating these mandates would alleviate financial burdens on consumers.
Conversely, representatives from the Sierra Club defended the REST regulations, indicating that they successfully stimulated nearly $12 billion in clean-energy investment in Arizona from 2007 to 2020. Concerns have been raised that repealing the REST rules could detrimentally affect air quality and public health by diminishing the development of clean energy resources.
Public Involvement and Next Steps
With Arizona’s energy demand rising steadily, the ACC plans to hold three public comment sessions concerning the repeal in November 2025, allowing for community input on the decision. Written comments on the repeal are to be submitted by November 14, 2025. Additionally, the ACC aims to file a Notice of Rulemaking Docket Opening with the Office of Secretary of State by September 19, 2025.
As Arizona moves away from the REST regulations, concerns linger among clean energy advocates about the potential deterrents to solar energy investments and the repercussions for vulnerable ratepayers. The outcome of this repeal process could significantly shape the future landscape of Arizona’s energy generation.
Deeper Dive: News & Info About This Topic
- Utility Dive: Arizona Regulators Begin Process to Repeal State’s Renewable Standard
- AZ Family: Utility Regulators Begin Repeal Process for Arizona Renewable Energy Requirements
- Solar Power World: Arizona Commissioners Unanimously Vote to Repeal State Renewable Energy Standard
- AZ Central: Arizona Corporation Commission Wants to Repeal Renewable Energy Requirements
- Google Search: Arizona Renewable Energy Standard Repeal
Author: STAFF HERE PHOENIX WRITER
PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
