Environmental Portfolio Standard


Last DSIRE Review: 04/30/2001  

Incentive Type:  Renewables Portfolio StandardEligible Technologies:  

Solar Thermal Electric, Photovoltaics, Wind, Biomass, Hydro, Geothermal

Electric, Waste,

Applicable Sectors:   Utilities,

Initial Minimum:  0.2%

Effective:  3/30/01Date

Enacted:  2000

Effective Date:  3/30/01

Expiration Date:  2012

Website:  http://www.cc.state.az.us/Authority:  

ACC Rules R14-2-1618; Decision 62506

Summary:Arizona’s Environmental Portfolio

Standard (EPS) was formally approved by the Arizona Corporation

Commission (ACC) in May of 2000 and it became operational on March 30,


Under the standard, regulated utilities in the state are required to provide a certain percentage of their electricity from renewable energy. The standard begins with 0.2% renewables for 2001 and increases to 1.1% renewables according to the following schedule.

  % Renewables Date







1.1%-----------------2007 - 2012

  Of these amounts, solar must make up 50% in 2001, increasing to 60% for 2004 through 2012. Applicable technologies include solar generation, solar water heating and solar air conditioning, landfill gas generators, wind generators, and biomass generators. (At one point, one of Arizona’s portfolio standard proposals was applicable only to solar technologies.)   Funding for the EPS comes from existing system benefits charges and a new surcharge to be collected by the state’s regulated utilities. The new surcharge is capped at 35¢ per month for residential customers, $13/month for non-residential, and $39/month for customers with loads over 3 MW. In total, at least $15 - $20 million is expected to be collected annually for the EPS.   Interestingly, the standard includes a caveat that if the of solar technologies do not decrease to a Commission determined cost/benefit point by the end of 2004, the portfolio requirement will not continue to increase. If sustained, the standard will produce almost 100 MW of solar power by 2007.

General Information

Arizona Corporation Commission1200 W. Washington Street, Phoenix, AZ 85007

Phone: (602) 542-0828Fax: (602) 542-2129

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