Date: January 31, 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 November 30, 2001, meeting were discussed. No changes were made.

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

Mr. Williamson presented a plan for approval of proposed EPS standards. The plan includes three phases. Under Phase I, final draft wording will be due January 14, 2002; documents will be mailed and e-mailed by January 28, 2001; responses by parties will be due by February 15, 2001; and final wording will be submitted to the Utilities Director by February 28, 2001. Dish Sterling Systems might be added to Phase II; Bud Annan will contact someone in that industry. Phases II and III of the plan will be discussed at the next meeting. See the plan in Attachment 2.

It was suggested that Mr. Williamson bring refreshments to the next meeting.

David Berry discussed New Mexico's proposed Renewable Portfolio Standard. See the summary in Attachment 3. Mr. Williamson will e-mail the proposed rule to the working group. It was suggested that the working group encourage Arizona Commissioners to meet with New Mexico Commissioners concerning renewable portfolio standards.

Daniel Musgrove discussed In-State Content Guidelines. He suggested that the guidelines be modified to be more liberal to encourage economic development and take into account what is being done in other states. Dr. Berry proposed that default values be deleted from the guidelines. David Rowley will work on wording for a procurement provision to be added to the guidelines. Anyone who has proposed language for changes to the In-State Content Guidelines should e-mail the language to the working group before the next meeting.

The Environmental Portfolio Cost Evaluation Working Group was discussed. Bud Annan will develop a white paper by February 8, 2001.

Michael Neary provided a report from the Solar Water Heating Committee. The proposed standards were put into final format.

Daniel Musgrove provided a report from the Landfill Gas Committee. He distributed the final version of the Eligibility Criteria for Landfill Gas Generator Sources which incorporated changes made at the November meeting. Mr. Williamson will e-mail the final version of the document to the working group.

Mr. Musgrove provided a report from the Biomass Committee. He distributed a draft of the Eligibility Criteria for Biomass Power Generator Sources. New subsections e, f, and g will be added to Section 1 under Criteria for Submittal to deal with hybrid systems. He will make the revisions and send the revised document to Mr. Williamson.

Paul Michaud provided a report from the Solar Thermal Trough Committee. To develop standards, the committee will divide into separate committees: Solar Trough Solar Thermal Systems, Solar Trough Electricity Generating Systems, and Solar Air Conditioning. Mr. Michaud will chair the Solar Trough Electricity Generating Systems Committee. Cassius McChesney will be the Solar Trough Solar Thermal Systems Committee. Solar Air Conditioning will be moved to Phase III.

David Rowley distributed a status report from the Barriers Committee. The Committee intends to submit a final report at the next working group meeting.

There was discussion about forming a committee about the implementation of Section I of the rules. The group decided that a committee was not needed at this time.

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

Barbara Keene, Utilities Division