ACC Finalizes Repeal of Energy Efficiency Rules

Phoenix, Ariz. - The Arizona Corporation Commission today took a final vote to eliminate Arizona's Electric Energy Efficiency Standards (EES), finalizing a repeal process that it started in 2025. The EES requires utilities like Arizona Public Service (APS) and Tucson Electric Power (TEP) to offer cost-effective programs that help Arizonans conserve energy and lower electric bills.

Deleting the EES means that utilities will have less incentive to invest in energy efficiency programs that have proven to successfully save customers money, and may also lead utilities to build expensive new generation infrastructure, leading to increased costs passed on to ratepayers. Sierra Club's comments to the Commission explained that repealing the EES is likely to result in higher energy consumption and long-term utility bill increases, and an economic impact statement (EIS) prepared by the Commission's own consultant found the same thing.

Arizonans are already witnessing utilities backslide on clean energy commitments. Repealing the EES enables utilities to ignore cheaper, cleaner energy resources to prop up fossil operations that are expensive, worsen air quality, and contribute to climate change.

The vote to repeal the EES came after the ACC had also voted to delete the state's Renewable Energy Standard and Tariff (REST), which supported the development of renewable energy like solar power, to bring clean energy jobs and investment to Arizona.

"The ACC has made no secret of its pattern to gut and slash clean energy at every opportunity despite proven cost benefits to customers," said Sierra Club Grand Canyon Chapter Director, Sandy Bahr. "The Commission's decision is a step backwards, locking Arizonans into an expensive, fossil fuel heavy future that will result in higher and higher electric bills when Arizonans have clearly called for the opposite."

"Energy efficiency is one of the most cost effective ways to lower utility bills and reduce unnecessary energy demand," said Environmental Justice Coalition Coordinator for Activate 48, Vanessa Perez. "Eliminating the Energy Efficiency Standard means Arizona families will ultimately pay more while losing access to programs that help keep energy costs down at a time when many households are already struggling."

"Latino families are among the most impacted by fossil energy operations that worsen air quality, and among the most affected by energy rate hikes," said Mi Familia en Acción Arizona State Director, Monica Sandschafer. "Mi Familia en Acción is disappointed in the ACC's decision and we will work to make sure our community is well-informed on the implications of eliminating Arizona's Electric Energy Efficiency Standards."

"This Arizona Corporation Commission continues to eliminate every possible tool we have to keep energy affordable in Arizona," said Chispa Arizona Organizing Director DJ Portugal. "From allowing profitable energy companies to raise electricity rates over and over, to getting rid of Renewable Energy Standards that help lower bills and protect the environment, to eliminating Energy Efficiency Standards. This commission is clearly looking out for the interests of greedy electricity companies, while leaving Arizonans to drown in expensive light bills. Shame on them."

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About the Sierra Club

The Sierra Club is America's largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit https://www.sierraclub.org.