Date: July 26, 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. Mr. Williamson announced that the Solar Electric Power Association's UPEx conference will be held on September 30, 2001. For more information, see www.solarelectricpower.org.

Carl Dabelstein talked about the Accounting Issues Subcommittee.

The minutes from the June 29, 2001, meeting were discussed. No changes were made.

The Master Issues List was discussed. It was decided that the following items be added: consumer information/fact sheets and green electricity certification.

Rick Gilliam reported on developments in Nevada. The Nevada legislature passed a bill (SB372) approving a Renewable Portfolio Standard. The Nevada PUC has six months to adopt rules.

Bud Annan reported on developments in California. Renewable requirements are obtained through auctions. For information on the New Renewable Resources Account, see www.energy.ca.gov/renewables. For information on financial incentives, see www.californiasolarcenter.org. For information on research, development and demonstration, see www.energy.ca.gov/research.

Steve Chalmers presented a report from the Standards Committee. A discussion was held concerning whether utilities should be required to follow standards. The issue of standards for small units was discussed. The Standards Committee will make one more attempt to complete all issues related to PV standards and present the report at the next meeting.

David Berry presented the final report from the Tradable Credit Committee. The Committee has completed its work and has been disbanded. Staff will present the guidelines to the Utilities Director for approval. Some issues on the Master Issues List can be considered to be resolved.

Mike Neary presented a report from the Solar Water Heating Committee. The Arizona Department of Commerce adopted SRCC OG 300 as a standard for solar domestic water heating systems to qualify for tax credits. Do-it yourself systems are exempt from those requirements.

Tom Hansen presented a report from the Wind Committee. The Committee is suggesting that all wind systems be metered, regardless of size.

Daniel Musgrove presented a report from the Landfill Gas Committee. Every landfill gas project will need to be metered. There is a metering issue when other fuels are also used when the landfill gas goes to a boiler instead of to a prime mover.

Daniel Musgrove presented a report from the Biomass Committee. Biomass needs to be defined.

The issue of interconnection was discussed.

The next meeting of the working group will be held on August 24, 2001, at 12:30 p.m. in the Pipeline Safety Conference Room at 1200 W. Washington.

Barbara Keene, Utilities Division