ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

House: NREW DPA 6-4-0-0

☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal Note


HB 2738: electric utility customers; carbon reduction

Sponsor: Representative Olson, LD 10

House Engrossed

Overview

Requires the Corporation Commission (Commission) to allow retail electric customers to opt out of service from one electric service provider and receive service from another electric service provider, based on certain criteria.

History

The Commission is permitted to supervise and regulate every public service corporation in the state and do all things necessary and convenient in the exercise of that power and jurisdiction (A.R.S. § 40-202).

A dispatchable source of energy refers to an electrical power system that can turn on or off to meet demand. The largest source of dispatchable energy used to create electricity in the United States is natural gas (EIA). Intermittent sources of electricity refer to electrical power systems that vary in their production amounts and do not have the ability to be turned on or off to meet demand. Wind and solar resources are generally considered to be intermittent sources of electricity (EIA).

Provisions

1.   Requires the Commission to allow a retail electric customer to opt out of service from a public service corporation if that corporation or their parent or holding company:

a)   commits in filings to the U.S. Securities and Exchange Commission or in an integrated resource plan to go net zero: or

b)   compensates executives or employees based on any clean energy commitment. (Sec. 1)

2.   Mandates the Commission adopt rules that:

a)   allow a retail electric customer to petition to opt out of services and receive electric service from another provider;

b)   establishes guidelines to provide retail electric service by other retail electric service providers or public power entities to opted out customers that have opted out of their original service territory. (Sec. 1)

3.   Defines:

a)   Commission;

b)   electric service;

c) net zero;

d)   retail electric customer; and

e)   service territory. (Sec. 1)

f)  

g)    

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i)                         HB 2738

j) Initials CW    Page 0 House Engrossed

k)    

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