Date: February 22, 2002

Time: 12:30 p.m.

Place: Arizona Corporation Commission, 1200 West Washington Street, 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 January 3, 2002, meeting were discussed. No changes were made. Mr. Williamson mentioned that the Phase II deadlines that are listed in the minutes will not be met.

David Berry mentioned that New Mexico’s work on a proposed Renewable Portfolio Standard has come to a halt.

The Master Issues List was discussed. No changes were made.

The group discussed the comments received in response to the Phase I package. The discussion of the questions was as follows:

Question #1: Should the "biomass" definition include "municipal wastes"?

The group was generally in favor of including municipal wastes in the biomass definition. A concern was expressed that municipal wastes might preclude other sources.

Question #2: Should the "biomass" definition include energy crops, trees, agricultural food and feed crops?

The group decided to include the crops and trees in the definition. It was suggested that there should be a cap on the amount of water used to grow the crops, but the group did not reach consensus on the issue.

Question #3: Should biofuels derived from agricultural crop wastes and residues be included in the "biomass" definition?

The group decided that biofuels should be included in the definition. A question was raised about proposed state legislation regarding bio-diesel fuel. Mr. Williamson will review the proposed legislation.

Question #4: Should the SRCC OG-300 rating be used to determine solar water heater output/conversion to kWh?

The group decided that the SRCC OG-300 rating should be used to determine solar water heater output/conversion to kWh. The definition of solar water heating was discussed.

Question #5: Should there be a provision in eligibility criteria that allows for "repowering" systems or equipment originally installed prior to 1997 if the renewable portion was new in 1997 or after?

The group agreed that this issue has been addressed in the Eligibility Criteria. This issue could also be addressed in a definition section. A question was raised concerning equipment that has previously been used elsewhere. An example is a customer relocating from California who brings a PV system with him or her.

Mr. Williamson mentioned that a lunch meeting of the Arizona Association of Energy Engineers will be held on March 14, 2002, from noon to 1:30 p.m., at the Arizona Club, 201 North Central Avenue, Phoenix. The guest speaker will be Randy Gee form Duke Solar LLC. The cost is $25 with an RSVP to Pawan Kumar at PKumar@comfortsystemsusa.com.

The group discussed the Selected Operating Procedures. The group discussed Daniel Musgrove’s proposed alternative language for In-state Content but decided to keep the original version. No changes were made.

The group discussed the Eligibility Criteria. Cassius McChesney presented APS’ comments which included adding a General Provisions section, expanding the Glossary and moving it to the front of the document, reducing the Metering Requirements in the Wind section, increasing the definition of Small PV to 10 kW. The group discussed those comments but could not achieve consensus on the definition of Small PV.

The Environmental Portfolio Cost Evaluation Working Group was discussed. Bud Annan will develop a white paper by the next Working Group meeting.

The group formed a Committee on Dish/Stirling Standards, to be chaired by Lori Glover. Other members will be Chuck Skidmore, Cassius McChesney, and Michael Neary.

The next meeting of the working group will be held on March 22, 2002, at 12:30 p.m. in the Pipeline Safety Conference Room at 1200 W. Washington Street, in Phoenix.

Barbara Keene, Utilities Division