ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

House: NREW DP 6-4-0-0

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

HB 2788: utility; resource plan; commission review

Sponsor: Representative Olson, LD 10

House Engrossed

Overview

Requires an electric public service corporation to prepare and submit an integrated resource plan (IRP) to the corporation commission for review and approval at least once every three years.

History

Every three years a study is conducted to identify how much energy customers will use over the next 15 years in the state of Arizona. This study includes data relating to potential growth, weather and events such as unexpected power failures (AZCC).

Provisions

1.   Requires an electric public service corporation to prepare and submit an integrated resource plan for review and approval at least once every three years which includes;

a)   projected energy demand for the next 15 years, with scenarios of low, medium and high load growth;

b)   a summary of all existing electric generation plants the public service corporation uses to meet existing and future demands;

c) each electric generation plant that is scheduled to retire in the next 15 years;

d)   all electric generation plants that are not yet constructed or currently owned or operated by the public service corporation;

e)   the total estimated capital and operating expenditures for each electrical generation plant and;

f) the total reliability value, including effective load carrying capacities for each electrical generation plant for the next 15 years. (Sec.1)

2.   Requires the use of the ratepayer impact measure test to determine the combination of electric generation plants and ownership structures of the plant and result in the:

a)   lowest overall lifetime revenue requirement;

b)   safest and most reliable electric service for retail electric customers in the next 15 years; and

c) carbon or emission reduction goals are not the design or intent of the ratepayer impact measure test. (Sec.1)

3.   Requires a cost analysis that assumes any subsidies, grants or credits that are currently available to the public service corporation that will be available for 15 years. (Sec. 1)

4.   Includes, if possible, a separate analysis to provide the total estimated upstream and downstream carbon dioxide emissions and greenhouse gas equivalents of each electric plant. (Sec. 1)

5.   Requires an independent third-party evaluation before the commission approves or denies an IRP that verifies the information and presents alternative information, estimates, analyses and evaluations. (Sec.1)

6.   Uses the ratepayer impact tax measure test to make a recommendation regarding the combination of plants and ownership structures for those plants that have the lowest overall lifetime revenue requirement and lowest overall reliability requirements. (Sec.1)

7.   States a public service corporation or a parent company, holding company or affiliate may not adopt, implement or enforce any policy. (Sec.1)

8.   Defines ratepayer impact measure test as a test that measures the change in customer bills or rates due to changes in the utilities' capital. (Sec 1)

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12.                    HB 2788

13.  Initials CW/TM   Page 0 House Engrossed

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