News Summary
The Arizona Corporation Commission has voted unanimously to repeal the Renewable Energy Standard and Tariff (REST) rules that mandated electric utilities to generate a portion of their energy from renewable sources. The decision, which came during a meeting on August 14, 2025, reflects a significant policy shift in the state’s approach to renewable energy. Critics fear this may hinder future investments in clean energy as public comment sessions are set to gather community input on the repeal and its potential impacts.
Arizona – The Arizona Corporation Commission (ACC) has voted unanimously to repeal the Renewable Energy Standard and Tariff (REST) rules that have been in place since 2006. The decision was made on August 14, 2025, during a commission meeting, signaling a significant shift in the state’s energy policy.
The REST rules mandated electric utilities in Arizona to generate at least 15% of their energy from renewable sources by the year 2025. Within this requirement, 30% was to be derived from distributed energy renewable resources by the same year, with incremental percentages set for earlier years. Arizona Public Service Company (APS) and Tucson Electric Power Company (TEP), the two largest utilities in the state, have reported exceeding these requirements. APS noted that only 19% of its energy portfolio came from renewable sources in 2024, up from 13% in 2023, while TEP reported approximately 29%, a rise from 27% in the previous year.
The ACC’s decision was largely influenced by concerns over costs incurred by the renewable energy mandate. Since its implementation, the REST rules are estimated to have added around $2.3 billion to the utility bills of Arizona customers. ACC Vice Chair Nick Myers emphasized the need for utilities to have the flexibility to select their energy mix without being constrained by government mandates. He noted that these regulations often result in higher rates for consumers.
ACC Chair Kevin Thompson dismissed claims suggesting that repealing REST would adversely affect the development of renewable energy in Arizona. He posited that if renewable energy sources are indeed viable, they should thrive without government-imposed requirements. However, clean energy advocates, including groups like the Sierra Club and Vote Solar, argue that the REST rules played a vital role in attracting significant investment in solar energy and other renewable technologies. They warn that the repeal could hamper future investments in the clean energy sector during a time when many customers are already facing rising utility bills.
In recognition of public sentiment and to gather further input, the ACC is scheduled to hold three public comment sessions regarding the repeal in November. These sessions will take place on November 10 in Tucson, November 12 via phone, and November 13 in Phoenix. Submissions of written comments will be accepted until November 14.
Amid these discussions, APS has reiterated its commitment to providing reliable energy and reducing carbon emissions. The utility aims to reach 10.7 GW capacity in solar, wind, and battery storage combined by 2028, with 54% of its current energy portfolio already being carbon-free. Additionally, APS has recently shifted its clean energy goal from achieving a zero-carbon footprint to aiming for carbon neutrality by 2050.
The ongoing debate surrounding the repeal of REST takes place against a backdrop of decreased opposition to clean energy legislation in Arizona, which is reflected in changes to related tax incentives and broader legislative measures. Furthermore, experts predict substantial resistance to the repeal efforts, as challenges pertaining to climate change initiatives are likely to emerge.
With this decisive action from the ACC, the future landscape of renewable energy in Arizona is poised for transformation, raising questions about financial impacts on consumers and the state’s standing in the clean energy sector.
Deeper Dive: News & Info About This Topic
- Power Engineering
- Utility Dive
- AZ Family
- Solar Power World
- AZ Central
- Wikipedia: Renewable Energy in the United States
- Google Search: Arizona renewable energy standard
- Google Scholar: Arizona renewable energy
- Encyclopedia Britannica: Renewable Energy
- Google News: Arizona renewable energy 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.
