Regulators in Arizona initiate the procedure to rescind the state's renewable energy mandate
The Arizona Corporation Commission (ACC) has announced plans to repeal the state's Renewable Energy Standard and Tariff (REST) rules, a move that could have significant implications for the state's energy sector and its commitment to clean energy.
In a unanimous vote in August 2025, the ACC initiated the process to repeal the REST rules, which mandated that utilities generate at least 15% of their electricity from renewable sources by 2025. The ACC argues that utilities such as Arizona Public Service (APS) and Tucson Electric Power (TEP) have already met or exceeded these renewable energy targets, making the mandate redundant.
The repeal is expected to result in lower energy costs for consumers, as compliance with REST has added around $2.3 billion to consumer bills since 2006. By removing the mandated tariff mechanism, the ACC aims to give utilities greater discretion in choosing energy sources based on cost and reliability rather than fixed quotas.
However, the repeal raises concerns among clean energy advocates and some ACC officials. They worry that the removal of REST could slow Arizona’s clean energy transition in the context of growing electricity demand, as utilities may prioritize other energy sources without binding requirements. Critics also warn that removing the mandates could deter continued investment in solar energy and negatively impact many ratepayers.
APS, the state's largest electric utility, has updated its clean energy goals from an aspirational "zero-carbon" approach to an aspirational "carbon-neutral" approach by 2050. The company plans to have about 10.7 GW of solar, wind, and battery storage combined by 2028, and its energy portfolio was about 19% renewable in 2024. APS is committed to providing reliable power to its 1.4 million customers at the lowest cost possible while striving to lower carbon emissions over time.
Energy demand in Arizona is rising quickly, with three utilities setting new peak demand records earlier this month. Despite the repeal of the REST rules, ACC officials claim that renewables will continue to grow without mandates because they are economically competitive. However, they acknowledge that maintaining momentum towards Arizona’s broader clean energy and climate goals will be crucial.
The REST rule was set by the ACC in 2006, and its repeal is expected to have several impacts. While the ACC argues that the repeal will lower energy costs for consumers, some critics warn that it could slow Arizona’s clean energy transition and deter investment in solar energy. The ACC maintains that utilities will continue to prioritize renewable energy sources due to their economic competitiveness.
The ACC will hold three November proceedings where the public can give testimony on the repeal efforts, with written comments due to the commission by Nov. 14. The debate over the REST rules is ongoing, and the final outcome will have significant implications for Arizona's energy sector and its commitment to clean energy.
[1] Arizona Corporation Commission (ACC) votes to repeal Renewable Energy Standard and Tariff (REST) rules: https://www.azcc.gov/news/2025/08/20/acc-votes-repeal-renewable-energy-standard-and-tariff-rest-rules
[2] ACC to repeal Arizona's renewable energy standard: https://www.azcentral.com/story/money/business/energy/2025/08/20/arizona-corporation-commission-repeal-renewable-energy-standard/60496335007/
[3] APS's renewable energy portfolio: https://www.aps.com/content/dam/aps/about/reports/annual-reports/2024-annual-report/2024-annual-report-final.pdf
[4] TEP's renewable energy portfolio: https://www.tep.com/sites/default/files/2021-10/2024%20Sustainability%20Report%20-%20Final.pdf
[5] Clean energy advocates defend REST rules: https://www.azcentral.com/story/money/business/energy/2025/08/21/arizona-clean-energy-advocates-defend-renewable-energy-standard-tariff-rest-rules/6049802002/
Read also:
- Construction and renovation projects in Cham county granted €24.8 million focus on energy efficiency
- Finance Management Organization (FMO) secures €130 million syndicated loan for QNB Leasing in Turkey
- Transformation of Renewable Energy Through Power Batteries: Insights from Electric Cars and Solar Panels
- Utilizing Solar Energy: Examining Eco-Friendly Power Sources
