Date: June 29, 2001

Time: 12:30 p.m.

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

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

Topic: Environmental Portfolio Standard (EPS) Working Group

Matters Discussed:

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

The minutes from the May 21, 2001, meeting were discussed. No changes were made.

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

David Rowley presented a report from the Standards Committee. Mr. Rowley distributed a handout containing the System Sizing Matrix and eligibility criteria for photovoltaic generation sources. A change had been made to the System Sizing Matrix and definitions regarding large, in-state PV systems that are not grid-tied. The group discussed the format of the eligibility criteria. This format will be used for other technologies. Other technologies will be added to the Table of Contents. A protocol for Commission Staff to determine eligibility will be added to the document. There was a discussion about what needs to be metered. The Committee suggested that the level required for metering should be set at 1 kW and above, and anything below 1 kW would be up to the utility. There was some disagreement within the Working Group on the metering issue.

David Berry presented the report from the Tradable Credit Committee. Changes had been made to the Proposed EPS Certificate Guidelines based on discussion at the last meeting. The Working Group preferred the short version in Guideline No. 6. In No. 7, the wording "must be retired" will be changed to "would be considered to be retired". In No. 10.d., the words "have not expired and" will be deleted. Bud Annan will work with Mr. Berry to review the Comments column to see if any of it needs to be incorporated into the Guidelines. Paul Michaud will provide language for No. 4.c. to encourage consumers to shop around.

The Working Group created other Committees to develop technology standards. The goal for completion is the end of August. The Committees and their members are listed below:

1. Solar Water Heating Committee
   Mike Neary (chair), Cassius McChesney, Marie Sotelo, Daniel Musgrove
2. Wind Committee
   Tom Hansen (chair), Don Garrett, Cassius McChesney, David Rowley, Rick Gilliam, Marie Sotelo
3. Landfill Gas Committee
   Daniel Musgrove (chair),Tom Hansen, Tim McDonald, Marie Sotelo
4. Biomass Committee
   Daniel Musgrove (chair), Tom Hansen, Tim McDonald, Biff Hoffman, Don Garrett.
5. Solar Thermal Trough Committee
   Paul Michaud (chair), Mike Neary, Tom Hansen, Art Rivera, Steve Chalmers.

The next meeting of the working group will be held on July 26, 2001, at 12:30 p.m. in the Pipeline Safety Conference Room at 1200 W. Washington. The next agenda will include Rick Gilliam's presentation about developments in Nevada, Bud Annan's presentation about developments in California, and reports from the Committees. Other issues may be discussed as appropriate.

Barbara Keene, Utilities Division