News and Updates

Phoenix, Ariz. —   The Arizona Corporation Commission voted 4-0 to repeal the Electric Energy Efficiency Standards Rules (EEE Rules) – A.A.C. Title 14, Chapter 2, Article 24 during the July 8, 2026 Open meeting. The Commission reiterated its findings that the rules created an unjust subsidy whereby affluent rate payers were getting subsidized by low-income rate payers through uniform surcharges.   The Commission noted that the rules had served their purpose, the market had advanced to a point where subsidies and mandates were counterproductive, and the renewable markets were achieving parity and market saturation that did not exist in 2010.

“The repeal of the EEE Rules does not eliminate current Demand Side Management (DSM) and Energy Efficiency programs,” said Chair Nick Myers.  “The EEE mandate basically handed a blank check to utilities because any time you mandate programs, the utilities will seek to financially recover those costs from ratepayers. Evaluating DSM and EE programs on a case-by-case basis is the more prudent approach, rather than imposing an arbitrary mandate that inevitably leads to subsidies and cost shifting.”

"I fully support the use of energy efficiency and demand side management programs which have demonstrated energy savings,” said Vice Chair Rachel Walden.  “But, the solutions must be cost effective. The repeal of the rules does not mean that energy efficiency or demand side management programs go away. I urge technology stakeholders to continue to propose these types of solutions to offset new generation needs."

Current energy efficiency programs that have already been approved by the Commission will continue.  Surcharges related to energy efficiency programs may be phased out on an individual basis, either during a future utility rate case, or by order of the Commission

The Commission held two public comment sessions regarding the repeal of the EEE Rules IN December 2025 and nearly two dozen people provided public comments during the July 8, 2026 Open Meeting.

The Commission agreed that the EEE Rules are no longer in the public interest, in part, because they have resulted in millions of dollars being funded by ratepayers through surcharges that would not have been charged without the requirements imposed by the EEE Rules, sometimes to the benefit of relatively affluent customer groups while being paid for by all customer groups, including lower income customers.  This has resulted in affected utilities’ customers paying more for their service through subsidization of programs that benefit some customers (e.g., those who are buying a newly constructed home) at the expense of other customers.

“I voted to eliminate one of the surcharges on ratepayer’s bills across the state,” said Commissioner Lea Márquez Peterson. “This surcharge had been put in place in 2010 and was outdated and no longer applied. I look forward to working with stakeholders on supporting programs that provide energy efficiency options for families and small businesses in the future for those customers that want to participate. Energy efficiency programs have been beneficial at conserving energy so additional generation resources are not needed.”

The Commission has directed Staff to prepare a Notice of Final Rulemaking package and file all necessary documents with the Office of the Secretary of State for publication and codification.

All documents related to this case can be found in the ACC’s eDocket system at https://edocket.azcc.gov, Docket No. RE-00000A-24-0025.