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HB2331 • 2026

electric service providers; energy reliability

HB2331 - (NOW: electric utility; reliable energy standard)

Energy
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
David Marshall, Sr., Ralph Heap
Last action
2026-03-10
Official status
Senate second read
Effective date
Not listed

Plain English Breakdown

The bill summary does not specify penalties for non-compliance, leaving this detail uncertain.

Electric Utility Reliable Energy Standard

HB2331 requires electric distribution utilities to ensure at least 85% of their generating capacity is reliable starting January 1, 2030.

What This Bill Does

  • Requires electric public service corporations and public power entities serving more than one million customers in Arizona to have at least 85% of their generating capacity from reliable resources after January 1, 2030.
  • Mandates the Arizona Corporation Commission (ACC) to enforce this requirement through administrative proceedings.
  • Directs electric distribution utilities to file annual reports with the ACC demonstrating compliance unless information is legally confidential.
  • Allows the ACC to order corrective action plans for utilities not meeting the reliable energy standard.
  • Prohibits the ACC from approving resource actions that would reduce reliable generating capacity below 85%.

Who It Names or Affects

  • Electric public service corporations and public power entities serving more than one million customers in Arizona
  • The Arizona Corporation Commission (ACC)

Terms To Know

reliable resources
Electric generation resources that are dispatchable or capable of providing baseload energy and not subject to intermittent availability, except for routine maintenance.
intermittent availability
Resource availability primarily dependent on weather conditions, solar irradiance, wind speeds, or other naturally variable factors beyond the operator's control.

Limits and Unknowns

  • The bill does not specify penalties for non-compliance.
  • It is unclear how existing utilities will transition to meet the new standard by 2030.
  • The exact rules and procedures for enforcement are yet to be determined by the ACC.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Plain English: CORBIN W.

  • CORBIN W.
  • 3/3/2026 (602) 926-3848 ARIZONA HOUSE OF REPRESENTATIVES FLOOR AMENDMENT EXPLANATION 57th Legislature, 2nd Regular Session Majority Research Staff HB 2331: electric service providers; energy reliability HEAP FLOOR AMENDMENT 1.
  • Requires certain public power entities, on or after January 1, 2030 ensure that at least 85% of the generating capacity that is relied on to serve retail load customers consist of reliable resources.
  • 2.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: *corrected* Fifty-seventh Legislature Natural Resources, Energy & Water Second Regular Session H.B.

  • *corrected* Fifty-seventh Legislature Natural Resources, Energy & Water Second Regular Session H.B.
  • 2331 PROPOSED HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.
  • 2331 (Reference to proposed HEAP s/e amendment dated 1/30/26; 1:49 PM) Page 1, line 4, strike "Electric distribution utility " insert " Electric public 1 service corporation" 2 Lines 7 and 23, strike "ELECTRIC DISTRIBUTION UTILITY" insert "ELECTRIC PUBLIC 3 SERVICE CORPORATION" 4 Line 24, strike " ELECTRIC DISTRIBUTION UTILITY'S " insert " ELECTRIC PUBLIC 5 SERVICE CORPORATION'S" 6 Page 2, lines 9 and 10, strike "ELECTRIC DISTRIBUTION UTILITY'S" insert "ELECTRIC 7 PUBLIC SERVICE CORPORATION'S" 8 Line 14, strike " ELECTRIC DISTRIBUTION UTILITY'S " insert " ELECTRIC PUBLIC 9 SERVICE CORPORATION'S" 10 Lines 23 and 27, strike " ELECTRIC DISTRIBUTION UTILITY " insert " ELECTRIC 11 PUBLIC SERVICE CORPORATION" 12 Amend title to conform 13 RALPH HEAP 2331HEAP.docx 02/02/2026 11:31 AM H: CW/ls/ra
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: Fifty-seventh Legislature Natural Resources, Energy & Water Second Regular Session H.B.

  • Fifty-seventh Legislature Natural Resources, Energy & Water Second Regular Session H.B.
  • 2331 PROPOSED HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.
  • 2331 (Reference to printed bill) Strike everything after the enacting clause and insert: 1 "Section 1.
  • Title 40, chapter 2, article 1, Arizona Revised 2 Statutes, is amended by adding section 40-207, to read: 3 40-207.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Bill History

  1. 2026-03-10 Senate

    Senate second read

  2. 2026-03-09 Senate

    Senate Rules: None

  3. 2026-03-09 Senate

    Senate Natural Resources: None

  4. 2026-03-09 Senate

    Senate first read

  5. 2026-03-04 Senate

    Transmitted to Senate

  6. 2026-03-03 House

    House third read passed

  7. 2026-03-03 House

    House committee of the whole

  8. 2026-02-24 House

    House committee of the whole

  9. 2026-02-10 House

    House minority caucus

  10. 2026-02-10 House

    House majority caucus

  11. 2026-01-21 House

    House second read

  12. 2026-01-20 House

    House Rules: C&P

  13. 2026-01-20 House

    House Natural Resources, Energy & Water: DPA/SE ON RECON

  14. 2026-01-20 House

    House Natural Resources, Energy & Water: DPA/SE

  15. 2026-01-20 House

    House first read

Official Summary Text

HB2331 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House
: NREW DPA/SE 6-4-0-0

HB
2331
: electric service providers; energy reliability

S/E:
electric utility; reliable energy standard

Sponsor:
Representative Marshall, LD 7

Caucus
& COW

Summary
of Strike-Everything Amendment on HB2331

Overview

Directs
an electric distribution utility, on or after January 1, 2030, to ensure 85% of
generating capacity required to serve retail load customers consists of
reliable resources. Outlines duties of the Arizona Corporation Commission (ACC)
in enforcing the section.

History

An
electric distribution utility
is a public service
corporation or public power entity that operates, controls or maintains
electric distribution facilities (
A.R.S. � 40-201
).

The ACC is permitted to supervise and regulate all public
service corporations including electric distribution utilities. The ACC may
adopt rules to:

1)

protect
the public against deceptive, unfair and abusive business practices;

2)

provide
for customer, account and related proprietary information to be held
confidential; and

3)

ensure
public service corporations require contractors and subcontractors be properly
licensed (
A.R.S. � 40-202
).

Provisions

1.

Requires an
electric distribution utility, on or after January 1, 2030, to ensure at least
85% of the generating capacity relied on to serve retail load customers
consists of reliable resources. (Sec. 1)

2.

Mandates the ACC enforce the
requirements of this act in all relevant administrative proceedings. (Sec. 1)

3.

States the ACC
must ensure integrated resource plans, procurements and cost recovery requests
comply with this act. (Sec. 1)

4.

Outlines requirements for each
electric distribution unit, beginning January 1, 2031, and each year
thereafter, to file a report with the ACC that demonstrates compliance with this
act. �(Sec. 1)

5.

States the ACC
must make each report publicly available unless information is legally
confidential. (Sec. 1)

6.

Requires the
ACC, upon determining an electric distribution utility is not in compliance
with this act, to order a corrective action plan that achieves compliance as
soon as practicable. (Sec. 1)

7.

Allows the ACC to take certain
actions upon determining an electric distribution utility is not in compliance with
this act. (Sec. 1)

8.

Directs the ACC
to prioritize reliability and adequacy of service. �(Sec. 1)

9.

Prohibits
the ACC from allowing or approving recovery for resource actions that would
reasonably be expected to cause the electric distribution utility's generating
capacity to fall below 85% of reliable resources. (Sec. 1)

10.

Directs the ACC to adopt rules to
implement this act. (Sec. 1)

11.

Defines
pertinent terms. (Sec. 1)

12.

Contains a
legislative intent clause. (Sec. 1)

13.

Cites the
legislation as the "Energy Reliability Standards Act." (Sec. 1)

Amendments

Committee on
Natural Resources, Energy and Water

1. Replaces the
term electric distribution utility with electric public service corporation.
(Sec. 1)

---------- DOCUMENT FOOTER ---------

Initials CW/RS��������������������� HB
2331

2/5/2026��������� Page
0 Natural Resources, Energy & Water

---------- DOCUMENT FOOTER ---------

Current Bill Text

Read the full stored bill text
HB2331 - 572R - H Ver

House Engrossed

electric
service providers; energy reliability

(now: electric
utility; reliable energy standard)

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2331

AN
ACT

amending title 30, chapter 6, article 1,
arizona revised statutes, by adding section 30-812; amending title 40,
chapter 2, article 1, arizona revised statutes, by adding section 40-207;
relating to reliable electric resources.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 30, chapter 6, article 1,
Arizona Revised Statutes, is amended by adding section 30-812, to read:

START_STATUTE
30-812.

Public power entity; generating capacity; reliable resources;
definitions

A.
On
or after January 1, 2030, a public power entity that serves more than one
million customers in this state shall ensure that at least eighty-five
percent of the generating capacity that is relied on to serve retail load
customers consists of reliable resources.

B. For the purposes of this section:

1. "Generating capacity":

(
a
) Means the
nameplate alternating current capacity, measured in megawatts, of electric
generation resources that are owned, controlled, contracted for or otherwise
relied on by a public power entity to serve retail load in this state.

(
b
) Includes
capacity from utility-owned resources and capacity from purchased power
or tolling arrangements that provide capacity value to the public power entity.

2. "Intermittent
availability" means resource availability that is primarily dependent on
weather conditions, solar irradiance, wind speeds or other naturally variable
conditions beyond the operator's control and that cannot be dispatched on
demand to meet system needs as determined by the corporation commission.

3. "Reliable resource"
means an electric generation resource that is dispatchable or is capable of
providing baseload energy and that is not subject to intermittent availability,
except for routine maintenance and repairs.
END_STATUTE

Sec. 2. Title 40, chapter 2, article 1, Arizona
Revised Statutes, is amended by adding section 40-207, to read:

START_STATUTE
40-207.

Electric public service corporation; generating capacity;
reliable resources; definitions

A. On or after January 1, 2030, an
electric public service corporation shall ensure that at least eighty-five
percent of the generating capacity that is relied on to serve retail load
customers consists of reliable resources.

B. For the purposes of this section:

1. "Generating capacity":

(
a
) Means the
nameplate alternating current capacity, measured in megawatts, of electric
generation resources that are owned, controlled, contracted for or otherwise
relied on by an electric public service corporation to serve retail load in this
state.

(
b
) Includes
capacity from utility-owned resources and capacity from purchased power
or tolling arrangements that provide capacity value to the electric

public service corporation.

2. "Intermittent
availability" means resource availability that is primarily dependent on
weather conditions, solar irradiance, wind speeds or other naturally variable
conditions beyond the operator's control and that cannot be dispatched on
demand to meet system needs as determined by the commission.

3.
"Reliable resource
" means an electric
generation resource that is dispatchable
or is capable of
providing baseload energy and that is not subject to intermittent availability,
except for routine maintenance and repairs.
END_STATUTE

Sec. 3.
Legislative intent

The legislature intends that this act
is necessary for the convenience, comfort and safety of and the preservation of
the health of public service corporation patrons.

Sec. 4.
Short title

This act may be cited as the
"Energy Reliability Standards Act".