Phoenix, Ariz. —   The Arizona Corporation Commission recently adopted amendments to an agenda item for UNS Electric (UNSE) during their May 8 Open Meeting that stops incentives for homebuilders and provides additional energy efficiency resources and cost savings for low-income customers and schools. UNSE recently filed a request with the ACC to maintain their current DSM / EE approved programs and budgets while the Commission is undergoing official proceedings initiated by Thompson to repeal the DSM / EE rules in 2024. 

In the UNSE matter, Chair Thompson sponsored an amendment that discontinues several programs and directed UNSE to prioritize existing program funding for services to low-income individuals and schools. The amendment also eliminated subsidies paid to homebuilders to install energy-efficient appliances and redirected the budgets for programs like home energy reports and “behavioral comprehensive” programs that included free lightbulbs. In 2024, UNS spent nearly $61,000 for home builder incentives and $391,000 for energy reports and behavioral comprehensive spending. Additionally, his amendment increased the individual caps for low-income weatherization projects while requiring the utility to not expand total program spending beyond current funding levels. 

“The Commission is in the process of a significant undertaking to move forward the repeal of the DSM / EE mandate that will save ratepayers tens of millions of dollars annually,” said Chair Thompson. “We often say that the market should help dictate the decisions we make as a regulatory body, and that is exactly what we are doing. Commissioners must look out for ratepayers, and the time of forcing costly mandates on customers or blindly turning an eye while customers foot the bill for programs that do little to help reduce costs for customers or delay the need for new generation has come to an end.” 

The Commission also adopted an amendment offered by Commissioner Walden that limited the programs to just the 2025 calendar year while the Commission is undergoing repeal proceedings.

“I am fully supportive of focusing energy efficiency programs to assist those who are most in need, which are our low- and fixed-income families,” said Commissioner Walden. “Our vote keeps utility rates as affordable as possible by removing unnecessary subsidies for programs which are not needed. My amendment, in concert with Chair Thompson’s, prioritizes the focus for energy efficiency programs which deliver the most cost-effective outcomes, while ensuring the utility stays within budget and returns to the Commission for a review of its proposed plans beyond the 2025 plan year.”  

Over the years, mandates promoted by outside groups and touted by former Commissioners have resulted in significant costs for ratepayers. Since their inception in 2010, the DSM / EE rules have cost ratepayers over $1 Billion in additional surcharges. 

The Commission has been consistently cutting budgets and eliminating programs since January 2023 as part of the ongoing effort to cut wasteful spending and return money back to ratepayers, while procedurally undergoing the process required to repeal previously enacted rules. 

Moving forward, UNSE was directed to allocate those funds for home weatherization projects (things like duct sealing, insulation, HVAC efficiency) for low-income customers and projects focused on schools, such as installation of high efficiency air handling equipment that will help schools reduce energy consumption and save money.