ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: NREW DPA 6-2-0-2

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


HB 2912: utility; resource plan; commission review

Sponsor: Representative Olson, LD 10

Caucus & COW

Overview

Instructs the Arizona Corporation Commission (ACC) to require an electric public service corporation to submit an integrated resource plan (Plan) and outlines criteria for the Plan. States that a private public service corporation or a parent company, holding company or affiliate of the public service corporation cannot base an employee's or contractor's pay on factors that would interfere with the entity's duties to the public. 

History

The ACC ensures safe, reliable and affordable utility services. The ACC is comprised of eight divisions, including the Utilities Division, which has jurisdiction over the quality of service and rates charged by public service utilities. The Utilities Division responsibilities include researching and developing utility issues and providing information and evidence in ACC proceedings dealing with utility applications (CC)(JLBC).

Provisions

1.   Directs the ACC to require an electric public service corporation to submit a Plan for approval at least one every three years. (Sec. 1)

2.   Outlines required contents of a Plan, including but not limited to:

a.   the projected energy demand for the next 15 years;

b.   an analysis of the total estimated capital and operating expenditures for each electrical generation plant, combination of plants and combination of ownership structures;

c. an analysis of the total reliability value for each electrical generation plant and combination of plants;

d.   a cost analysis assuming any subsidies, grants or credits that are available to the public service corporation will continue to be available over all or part of the next 15 years; and

e. a description of all modeling assumptions used in each portfolio. (Sec. 1)

3.   Requires the ACC to acquire a review conducted by an independent third party before approving or denying a public service resource plan. (Sec. 1)

4.   Outlines conditions the independent review must satisfy. (Sec. 1)

5.   Stipulates that an approval of a public service resource plan is not binding in future rate cases. (Sec. 1)

6.   Asserts that a Plan that meets all statutory requirements and is approved by the ACC will be considered evidence of all relevant conditions known during the three-year period between Plans unless certain factors are met. (Sec. 1)

7.   Prohibits a public service corporation or a parent company, holding company or affiliate of the public service corporation from adopting procedures that would measure an employee's or contractor's pay on achieving a goal, objective, unit of measure or metric that conflicts with the public service corporation's obligation or ability to serve the public. (Sec. 1)

Amendments

Committee on Natural Resources, Energy & Water

1.   Removes the prohibition on a public service corporation or a parent company, holding company or affiliate of the public service corporation from adopting procedures that would measure an employee's or contractor's pay on achieving a goal, objective, unit of measure or metric that conflicts with the public service corporation's obligation or ability to serve the public.

2.   Allows ACC to include additional requirements.

3.   Requires an electric public service corporation to provide a request for proposals for the generation of electricity to ACC for approval before issuing a request for proposals.

4.   Outlines requirements of requests for proposals for the generation of electricity; the requests will:

a.   be competitive and technology agnostic;

b.   not discriminate against a resource on the basis of carbon emissions;

c. prioritize reliability and affordability; and

d.   be designed to result in contracts for resources that provide reliable electricity at the lowest cost.

5.   Requires ACC to appoint an independent monitor to oversee each request for proposal to ensure compliance of each request.

6.   Instructs an electric public service corporation to report to ACC the result of a request for proposals including resources contracted and evidence supporting the choices of resources.

 

 

 

 

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Initials CW/HC                     HB 2912

2/18/2026        Page 0 Caucus & COW

 

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