Phoenix, Ariz.— At the Arizona Corporation Commission’s Integrated Resource Planning Workshop on July 31, 2024, Commissioner Nick Myers repeatedly emphasized the priorities of reliability and affordability.
The Commission requires Load Serving Entities, including Arizona Public Service Company (“APS”), Tucson Electric Power Company (“TEP”), UNS Electric (“UNSE”), and Arizona Electric Power Cooperative (“AEPCO”) to submit an Integrated Resource Plan (“IRP”) every three years. In their IRPs, each utility identifies the resource mix they believe will meet the energy needs of their customers over the next 15 years, as well as include an action plan for the next five years.
At the July 31 IRP Workshop, the vertically integrated utilities highlighted in their presentations their projected load growth, the resource portfolios analyzed, their selected portfolio, and the estimated revenue requirement for each of the portfolios.
Through his questions to the utilities, Commissioner Myers wanted to ensure each utility had in fact analyzed a least-cost, technology neutral portfolio without regard for the utility’s self-imposed emissions reduction goals, as required in Decision No. 78499. Moreover, he questioned whether these utility goals may have resulted in the selection of a more costly or less reliable resource portfolio.
“IRP planning is a complicated process that involves the analysis of various scenarios, multiple iterations, and complex projections. It is critical that the Commission understands what a utility’s plan is going forward and addresses any possible discrepancies or inconsistencies so that Arizonans can feel comfortable that their air conditioning will remain on and at an affordable rate,” stated Commissioner Myers.
Utilities filed their 2023 IRPs on August 1 and November 1, 2023, in Docket E-99999A-22-0046. Commission Staff is currently reviewing the IRPs and expects to bring a memorandum and proposed order for the Commission’s review by the end of August 2024.
“Reliability and affordability will continue to be my highest priorities,” stated Commissioner Myers in his closing remarks, “we absolutely cannot afford to have blackout and brownouts in Arizona.”
For more information, please contact Amanda Hasty at myers-web@azcc.gov.
A recording of the Workshop can be found here: https://azcc.granicus.com/player/clip/6039?view_id=3&redirect=true
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