electric service providers; energy reliability

Plain English Breakdown

The official text defines the standard but leaves the specific implementation rules and calculation methods for the ACC to determine later.

HB2331: Energy Reliability Standards Act

Starting January 1, 2030, this law requires Arizona electric public service corporations and large public power entities to ensure at least 85% of their generating capacity comes from reliable resources.

What This Bill Does

• Requires electric public service corporations to have at least 85% of their generating capacity consist of reliable resources by January 1, 2030.
• Requires public power entities serving more than one million customers in Arizona to have at least 85% of their generating capacity consist of reliable resources by January 1, 2030.
• Mandates the Arizona Corporation Commission (ACC) enforce these requirements in all relevant administrative proceedings.
• States that integrated resource plans, procurements, and cost recovery requests must comply with this act.
• Requires electric distribution utilities to file annual compliance reports with the ACC starting January 1, 2031.
• Directs the ACC to make utility reports available to the public unless information is legally confidential.
• Requires the ACC to order a corrective action plan if it finds an entity is not meeting the standard.
• Prohibits the ACC from approving cost recovery for actions expected to cause generating capacity to fall below 85% reliable resources.
• Directs the ACC to prioritize reliability and adequacy of service.

Who It Names or Affects

• Electric public service corporations operating in Arizona
• Public power entities that serve more than one million customers in Arizona

Terms To Know

Reliable resource

An electric generation source that can be turned on when needed or provides steady baseload energy, and is not dependent on weather conditions.

Intermittent availability

Power sources like wind or solar that depend on weather and cannot always provide energy exactly when the system needs it.

Generating capacity

The total amount of electricity a utility can produce, measured in megawatts, from resources it owns, controls, contracts for, or relies on to serve customers.

Limits and Unknowns

• The law requires the ACC to adopt rules to implement these standards but does not list those specific rules.
• The text defines 'reliable resource' generally but does not provide a specific list of power plant types that qualify or do not qualify.

Official Summary Text

HB2331 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House
: NREW DPA 6-4-0-0

HB
2331
:
electric service providers; energy reliability

NOW:
electric utility; reliable energy standard

Sponsor:
Representative Marshall, LD 7

House
Engrossed

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 public service
corporation
, 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 public service corporation 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 public service corporation 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 public service corporation'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)

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

3/25/2026������� Page
0 House Engrossed

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Current 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".