Date: August 24, 2001

Time: 12:30 p.m.

Place: Arizona Corporation Commission, 1200 W. Washington, Pipeline Safety Conference Room 101, Phoenix, Arizona 85007

Attendance: No Quorum of Commissioners. See attendance list in Attachment 1.

Topic: Environmental Portfolio Standard (EPS) Workshop

Matters Discussed:

Ray Williamson of Commission Staff welcomed everyone to the meeting. All participants introduced themselves.

The minutes from the June 26, 2001 meeting were discussed. No changes were made.

The Master Issues List was discussed. There were no changes or additions.

Carl Dabelstein could not attend the meeting, but sent a report from the Accounting Committee, which basically completes its charge.

Steve Chalmers and David Rowley gave a report from the PV Standards Committee. The Committee gave the working group its final recommendations and asked to be disbanded.

• Tom Hansen reported on the Wind Committee. He passed out a draft of wind standards.

• Dan Musgrove reported on the Landfill Gas Committee.

• Solar Thermal Trough Committee ? nothing has been done on this committee.

• Mike Neary reported on the Solar Water Heating Committee.

There was an extensive discussion about the possibility of setting up a proposed "Interconnection Committee." Some off those interested in such a committee, expressed concern about a lack of true net metering in Arizona. Some suggested that APS?tm) "net billing" tariffs do not conform with earlier Commission decisions requiring net metering. Others pointed out that the Corporation Commission has already addressed this issue in its Distributed Generation and Interconnection Working Group, which met in 1999 and 2000. They suggested that the EPS Working Group should not re-do what has already been addressed. Finally after much discussion, it was decided that the work of the new committee should focus on barriers to the use of renewables. The major effort would be to identify barriers.

Therefore, the group decided to establish a new Barriers Committee, which David Rowley will chair. The members will be: David Rowley (chair), Art Rivera, Tom Hansen, Rick Gilliam, Bill Murphy, Chuck Skidmore, Cassius McChesney and Sean Seitz.

The next meeting of the working group will be held on September 21, 2001, at 12:30 p.m. in the Pipeline Safety Conference Room at 1200 W. Washington Street, in Phoenix.

The October meeting has been scheduled for October 19, 2001, at 12:30 p.m. in the Pipeline Safety Conference Room.

J. Beth Cockrill, Utilities Division