HB2788

THE CONTEXT: Every three years a study is conducted to identify how much energy customers will use over the next 15 years in the state of Arizona. This study includes data relating to potential growth, weather and events such as unexpected power failures ( AZCC ).

WHAT THE BILL DID: The final vetoed version would require an electric public service corporation to prepare and submit an integrated resource plan for review and approval at least once every three years which includes; a) projected energy demand for the next 15 years, with scenarios of low, medium and high load growth; b) a summary of all existing electric generation plants the public service corporation uses to meet existing and future demands; c) each electric generation plant that is scheduled to retire in the next 15 years; d) all electric generation plants that are not yet constructed or currently owned or operated by the public service corporation; e) the total estimated capital and operating expenditures for each electrical generation plant and; f) the total reliability value, including effective load carrying capacities for each electrical generation plant for the next 15 years, require the use of the ratepayer impact measure test to determine the combination of electric generation plants and ownership structures of the plant and result in the: a) lowest overall lifetime revenue requirement; b) safest and most reliable electric service for retail electric customers in the next 15 years; and c) carbon or emission reduction goals are not the design or intent of the ratepayer impact measure test, and require a cost analysis that assumes any subsidies, grants or credits that are currently available to the public service corporation that will be available for 15 years.

WHY IT MATTERED: The practical reason for this bill was to turn the Legislature's standard for utility into an enforceable rule. It would require an electric public service corporation to prepare and submit an integrated resource plan for review and approval at least once every three years which includes; a) projected energy demand for the next 15 years, with scenarios of low, medium and high load growth; b) a summary of all existing electric generation plants the public service corporation uses to meet existing and future demands; c) each electric generation plant that is scheduled to retire in the next 15 years; d) all electric generation plants that are not yet constructed or currently owned or operated by the public service corporation; e) the total estimated capital and operating expenditures for each electrical generation plant and; f) the total reliability value, including effective load carrying capacities for each electrical generation plant for the next 15 years, and would also require the use of the ratepayer impact measure test to determine the combination of electric generation plants and ownership structures of the plant and result in the: a) lowest overall lifetime revenue requirement; b) safest and most reliable electric service for retail electric customers in the next 15 years; and c) carbon or emission reduction goals are not the design or intent of the ratepayer impact measure test, rather than leave the current rule unchanged.