HCM2014 - 571R

To the Commissioners of the Arizona Corporation Commission:

Your memorialist respectfully represents:

Whereas, in 2006 the Arizona Corporation Commission approved the Renewable Energy Standard and Tariff Rules mandating that regulated electric utilities generate 15% of their energy from renewable resources by 2025, costing ratepayers $2.3 billion; and

Whereas, in 2018, Proposition 127, which would have amended the Arizona constitution to require utilities to obtain 50% renewable energy by 2030, was rejected by voters by more than a two-to-one margin; and

Whereas, in 2020, the Arizona Corporation Commission opened a docket to consider mandating utilities to obtain 100% renewable energy by 2050; and

Whereas, an independent third-party analysis found that the proposed mandates would cost ratepayers $6 billion by 2050, resulting in the mandate being rejected by a three-to-two vote; and

Whereas, following the rejection of renewable mandates by the Commission, Arizona's utilities announced voluntary commitments to go "Net Zero" by 2050; and

Whereas, Net Zero requires retiring all coal generation by 2031 and relying almost exclusively on solar, wind and battery storage; and

Whereas, solar and wind are intermittent and therefore unreliable sources of energy generation that cannot be dispatched at all times to respond to demand; and

Whereas, countries that have committed to going Net Zero have experienced increased costs and reduced reliability, including in Germany where the cost of electricity per kilowatt hour is more than 42 cents compared to an average cost of 15 cents per kilowatt hour in Arizona, representing an annual cost of $3,300 more for the average customer; and

Whereas, recent reports have found that ratepayers in states with renewable energy mandates spend 42% more on electricity than ratepayers in states with no mandates; and

Whereas, Net Zero is built on a faulty presumption that carbon is bad, yet carbon dioxide makes up less than 0.4% of earth's atmosphere, amounting to 400 parts per million, and if carbon dioxide levels drop below 150 ppm life could not be supported; and

Whereas, the United States going Net Zero would only reduce global temperatures by 0.02 degrees and the entire world going Net Zero would only reduce global temperatures by 0.13 degrees; and

Whereas, this trivial reduction in global temperatures cannot justify the $78 trillion, at minimum, cost of eliminating carbon emissions; and

Whereas, the retirement of reliable generation sources would plunge Arizona into energy poverty; and

~~Whereas, in 2018, Proposition 127, which would have amended the Arizona constitution requiring utilities to obtain 50% renewable energy by 2030, was rejected by voters by more than a 2-1 margin; and~~

~~Whereas, in 2020, the Arizona Corporation Commission opened a docket to consider mandating utilities to obtain 100% renewable energy by 2050; and~~

~~Whereas, an independent third-party analysis found that the proposed mandates would cost ratepayers $6 billion by 2050, resulting in the mandate being rejected by a 3-2 vote; and~~

~~Whereas, following the rejection of renewable mandates by the Commission, Arizona’s utilities announced voluntary commitments to go “Net Zero” by 2050; and~~

~~Whereas, Net Zero requires retiring all coal generation by 2031 and relying almost exclusively on solar, wind, and battery storage; and~~

~~Whereas, solar and wind are intermittent and therefore unreliable sources of energy generation that cannot be dispatched at all times to respond to demand; and~~

Whereas, countries that have committed to going “Net Zero” have experienced increased costs and reduced reliability, including in Germany where the cost of electricity per kilowatt hour is more than 42 cents compared to an average cost of 15 cents per kilowatt hour in Arizona, representing an annual cost of $3,300 more for the average customer; and

~~Whereas, recent reports have found that ratepayers in states with renewable energy mandates spend 42% more on electricity than ratepayers in states with no mandates; and~~

Whereas, “Net Zero” is built on a faulty presumption that carbon is bad, yet carbon dioxide makes up less than 0.4% of earth’s atmosphere amounting to 400 parts per million and if carbon dioxide levels drop below 150 ppm life could not be supported; and

Whereas, the United States going “Net Zero” would only reduce global temperatures by 0.02 degrees and the entire world going “Net Zero” would only reduce global temperatures by 0.13 degrees; and

~~Whereas, this trivial reduction in global temperatures cannot justify the at minimum $78 trillion cost of eliminating carbon emissions; and~~

~~Whereas, the retirement of reliable generation sources would plunge Arizona into energy poverty; and~~

Whereas, Arizona citizens, including families, schools, hospitals, small businesses, farms and industries, depend on reliable and affordable electric utility service for everything they do, from operating lifesaving medical equipment to operating lifesaving building temperature and humidity control systems; and

Whereas, utilities have to "overbuild" the grid when replacing reliable sources of energy with unreliable sources of energy to account for the intermittent nature of those sources, recovering costs from ratepayers for energy they never receive; and

Whereas, Arizona ratepayers should only pay for the energy they receive; and

Whereas, utilities and the Corporation Commission should focus only on ensuring reliable, affordable and abundant energy generation.Whereas, utilities have to “overbuild” the grid when replacing reliable sources of energy with unreliable sources of energy to account for the intermittent nature of those sources, recovering costs from ratepayers for energy they never receive; and

~~Whereas, Arizona ratepayers should only pay for the energy they receive; and~~

~~Whereas, utilities and the Corporation Commission should focus only on ensuring reliable, affordable, and abundant energy generation.~~

Wherefore, your memorialist, the House of Representatives of the State of Arizona, the Senate concurring, prays:

1. That the Arizona Corporation Commission ensure the Arizona grid is powered by affordable and reliable energy generation.

2. That the Arizona Corporation Commission prevent regulated utilities from going "Net Zero" and shutting down this state's critical dispatchable sources of energy generation and replacing them with costly, intermittent and unreliable solar, wind and battery storage.

3. That the Arizona Corporation Commission protect ratepayers by adopting the national model policy entitled "Only Pay for What You Get" to allow Arizona utilities to recover costs only from the reliable portion of generation from a proposed new source.

~~1. That the Arizona Corporation Commission ensure the Arizona grid is powered by affordable and reliable energy generation;~~

2. That the Commission prevents regulated utilities from going “Net Zero” and shutting down our critical dispatchable sources of energy generation and replacing them with costly, intermittent, and unreliable solar, wind and battery storage;

3. That the Commission protect ratepayers by adopting national model policy entitled, “Only Pay for What You Get,” to allow Arizona utilities to recover costs only from the reliable portion of generation from a proposed new source.

4. That the Secretary of State of the State of Arizona transmit copies of this Memorial to the Chairperson and each Commissioner of the Arizona Corporation Commission.