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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
public utilities; electric grid improvements
Purpose
Requires the Arizona Corporation Commission (ACC), during the integrated resource planning process, to require a public service corporation to ensure that any changes to maintain or improve an electric power grid are capable of producing enough electricity to provide safe, adequate and reliable service throughout the year.
Background
The ACC regulates investor-owned or privately-owned utilities that provide gas, water, electricity or telephone service (ACC). The ACC has the power to inspect and investigate the property, books, papers, business, methods and affairs of any corporation whose stock is offered for sale to the public and any public service corporation doing business within Arizona (Ariz. Const. art. 15 § 4). The ACC has the power and authority to enforce its rules, regulations and orders by the imposition of such fines as the ACC may deem just (Ariz. Const. art. 15 § 19). The Arizona Constitution allows the Legislature to enlarge the powers and extend the duties of the ACC and to prescribe rules and regulations to govern proceedings by and before the ACC (Ariz. Const. art. 15 § 6).
The Office of Electricity operates under the U.S. Department of Energy with the purpose of conducting research, development and demonstration programs to strengthen and modernize the United States power grid so that the United States maintains a reliable, resilient and secure electricity delivery infrastructure. The Office of Electricity focuses on modernizing grid systems and components, grid controls and communications and energy storage to improve safety, reliability and performance of the electric power grid (DOE).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the ACC, during the integrated resource planning process, to require a public service corporation to ensure that any changes to maintain or improve an electric power grid are capable of producing enough electricity to provide safe, adequate and reliable service throughout the year.
2. Requires the ACC, on the retirement of an electric generation plant, to ensure that a replacement electric generation plant is capable of providing an equal or more reliable electric generation that ensures safe and adequate service.
3. Becomes effective on the general effective date.
Amendments Adopted by the House of Representatives
1. Requires the ACC, during the integrated resource planning process, to require a public service corporation to ensure that any changes to maintain or improve an electric power grid are capable of producing enough electricity to provide safe, adequate and reliable service throughout the year.
2. Removes the requirement that the ACC ensure that any changes to maintain or improve an electric power grid are capable of producing enough electricity to meet the demand for electric service in the summer and winter months and contain a generation resource mix.
3. Requires the ACC, on the retirement of an electric generation plant, to ensure that a replacement electric generation plant is capable of providing an equal or more reliable electric generation that ensures safe and adequate service, rather than equally dispatchable load following generation.
4. Makes conforming changes.
Senate Action House Action
NR 2/11/25 DP 5-3-0 NREW 3/11/25 DP 5-4-0-1
3rd Read 2/26/25 17-12-1 3rd Read 3/31/25 31-25-4
Prepared by Senate Research
April 7, 2025
SB/ci