Arizona Corporation Commission Repeals State Electric Energy Efficiency Standards

The Arizona Corporation Commission voted on July 9, 2026, to repeal the state's Electric Energy Efficiency Standards (EES). Established in 2010, the mandate required regulated utilities, including Arizona Public Service and Tucson Electric Power, to implement cost-effective conservation programs to reduce cumulative energy use by 22 percent by 2020. Arizona Public Service achieved a 26 percent reduction, while Tucson Electric Power reached 28.5 percent.

Commissioners René Lopez, Rachel Walden, and Nick Myers argued the standards were outdated and impractical given the growth of manufacturing facilities and data centers. They contended that these mandates acted as justifications for utilities to recover costs and surcharges from ratepayers. The commission maintained that utilities may still implement voluntary efficiency and demand response measures through their long-range resource plans.

Critics, including the Sierra Club, warned that the repeal would lead to higher energy consumption and increased long-term utility bills by reducing incentives for efficiency upgrades. Sandy Bahr of the Sierra Club's Grand Canyon Chapter argued that such standards benefit all ratepayers by lowering the need for expensive new power plants. This vote follows a previous commission decision in March 2026 to eliminate the state's Renewable Energy Standard and Tariff.