AZ: Proposed rulemaking to address RES compliance, REC issues


The Arizona Corporation Commission has voted to publish Staff’s proposed rules addressing utility compliance with the state’s Renewable Energy Standard, as well as ownership and counting of renewable energy credits. The ACC did so despite some objections that the proposed rules contain language that creates questions about customer REC ownership.

The ACC subsequently issued a Notice of Proposed Rulemaking (Docket No. RE-00000C-14-0112) and set a deadline of November 10, 2014, for comments on the proposed revisions. Public hearings will be held November 12, 2014, and November 14, 2014. The proposed revisions clarify that generators own RECs associated with the renewable energy they create (absent express written consent to the contrary), and expand existing provisions governing RES compliance to differentiate utility-owned and customer-owned RECs, while allowing the ACC to consider “all available information” when determining a utility’s compliance.