ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: NREW DPA/SE 6-4-0-0

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

HB 2331: electric service providers; energy reliability

S/E: electric utility; reliable energy standard

Sponsor: Representative Marshall, LD 7

Caucus & COW

 

Summary of Strike-Everything Amendment on HB2331

Overview

Directs an electric distribution utility, on or after January 1, 2030, to ensure 85% of generating capacity required to serve retail load customers consists of reliable resources. Outlines duties of the Arizona Corporation Commission (ACC) in enforcing the section.

History

An electric distribution utility is a public service corporation or public power entity that operates, controls or maintains electric distribution facilities (A.R.S. § 40-201).

The ACC is permitted to supervise and regulate all public service corporations including electric distribution utilities. The ACC may adopt rules to:

1)   protect the public against deceptive, unfair and abusive business practices;

2)   provide for customer, account and related proprietary information to be held confidential; and

3)   ensure public service corporations require contractors and subcontractors be properly licensed (A.R.S. § 40-202).

Provisions

1.   Requires an electric distribution utility, on or after January 1, 2030, to ensure at least 85% of the generating capacity relied on to serve retail load customers consists of reliable resources. (Sec. 1)

2.   Mandates the ACC enforce the requirements of this act in all relevant administrative proceedings. (Sec. 1)

3.   States the ACC must ensure integrated resource plans, procurements and cost recovery requests comply with this act. (Sec. 1)

4.   Outlines requirements for each electric distribution unit, beginning January 1, 2031, and each year thereafter, to file a report with the ACC that demonstrates compliance with this act.  (Sec. 1)

5.   States the ACC must make each report publicly available unless information is legally confidential. (Sec. 1)

6.   Requires the ACC, upon determining an electric distribution utility is not in compliance with this act, to order a corrective action plan that achieves compliance as soon as practicable. (Sec. 1)

7.   Allows the ACC to take certain actions upon determining an electric distribution utility is not in compliance with this act. (Sec. 1)

8.   Directs the ACC to prioritize reliability and adequacy of service.  (Sec. 1)

9.   Prohibits the ACC from allowing or approving recovery for resource actions that would reasonably be expected to cause the electric distribution utility's generating capacity to fall below 85% of reliable resources. (Sec. 1)

10.  Directs the ACC to adopt rules to implement this act. (Sec. 1)

11.  Defines pertinent terms. (Sec. 1)

12.  Contains a legislative intent clause. (Sec. 1)

13.  Cites the legislation as the "Energy Reliability Standards Act." (Sec. 1)

Amendments

Committee on Natural Resources, Energy and Water

1. Replaces the term electric distribution utility with electric public service corporation. (Sec. 1)

 

 

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Initials CW/RS                      HB 2331

2/5/2026          Page 0 Natural Resources, Energy & Water

 

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