ARIZONA HOUSE OF REPRESENTATIVES Fifty-seventh Legislature First Regular Session
	House: NREW DP 5-4-0-1

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HB 2527: corporation commission; electricity; reliability; management

Sponsor: Representative Olson, LD 10

House Engrossed

Overview

Prohibits the Arizona Corporation Commission (Commission) from authorizing the closure of an electric generation facility if there is not a new facility presently available with equal or greater power generation.

History

The Commission has supervisory and regulatory jurisdiction over public service corporations, including but not limited to electric utilities and electric generation facilities (A.R.S. § 40-202). It is responsible for administering the certificate of public convenience and necessity which is required by a public service corporation to begin construction of plants and other similar facilities (A.R.S. § 40-281). A public service corporation is prohibited from selling, leasing, disposing of, encumbering or other related actions to any part of its railroad, line, plant or systems necessary or useful in the performance of its duties to the public, unless otherwise authorized by the Commission (A.R.S. § 40-285).

Provisions

1. Prohibits the Commission from authorizing the retirement of an electric generation facility unless there is a new electric generation facility with equal or greater power generation. (Sec. 1)

2. Requires the Commission to:

a) prioritize new electric generation facilities that are from dispatchable sources; and

b) project to increase the dispatchable electricity in this state by at least 5% between 2025 and 2030. (Sec. 1)

3. Outlines actions of the Commission if federal regulations would require the upgrade or closure of an existing power plant. (Sec. 1)

4. Requires the electrical generation facility to notify the Commission within thirty days after the generation facility is notified of regulatory action that would make continued operation infeasible. (Sec. 1)

5. Upon receival of the notice the Commission is required to open an investigatory docket to determine how the retirement or decommissioning of the electrical generation facility would impact the reliability and affordability of energy resources and recommend any necessary action to defend the electrical generation facility. (Sec. 1)

6. Permits the Commission to request that the Attorney General file an action in court or participate in any administrative proceedings. (Sec. 1)

7. Allows for the Commission and Attorney General to use legislative appropriations to accomplish the actions of this measure. (Sec. 1)

8. Defines:

a) dispatchable;

b) electric generation facility;

c) firm power; and

d) reliable. (Sec 1)

Miscellaneous

9. Contains a legislative findings and intent clause that addresses:

a) dependability and affordability of electricity;

b) supply and demand issues;

c) the closure of coal plants;

d) retaining and adding dispatchable sources of electricity; and

e) Arizona's authority over the retirement of in-state electric generation facilities. (Sec. 2)

f)

g)

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i)                         HB 2527

j) Initials CW    Page 0 House Engrossed

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