Official Summary Text
HB2912 - 572R - Senate Fact Sheet
Assigned to
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COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
FACT SHEET FOR
H.B. 2912
utility; resource plan;
commission review
Purpose
Outlines an
integrated resource plan (plan) and requires an electric public service
corporation submit the plan to Arizona Corporation Commission (ACC) every 3
years.
Background
The Arizona Constitution deems all corporations, other than municipal,
engaged in furnishing gas, oil or electricity for light, fuel, power, water for
irrigation, fire protection or other public purposes, or in furnishing, for
profit, hot or cold air or steam for heating or cooling purposes as public
service corporations. Corporations, other than municipal, that engage in
collecting, transporting, treating, purifying and disposing of sewage through a
system for profit or that transmit messages or furnish public telegraph or
telephone service, and all corporations other than municipal, operating as
common carriers are also deemed public service corporations (
Ariz.
Const. art. 15 � 2
).
In supervising and regulating public service corporations, the ACC's
authority is confirmed to adopt rules to: 1) protect the public against
deceptive, unfair and abusive business practices, practices related to deposit
requirements and reconnection fees, intrusive and abusive marketing, deceptive
or untrue advertising practices and other statutorily prescribed practices;
2) provide that, notwithstanding any other law, customer information, account
information and related proprietary information are confidential unless
specifically waived by the customer in writing; and 3) ensure that public
service corporations that employ the services of a contractor for interior
household energy service, either directly or through any affiliate, require the
contractors and subcontractors to be licensed by the Registrar of Contractors
and comply with all municipal permit and inspection standards and applicable
life safety codes (
A.R.S.
� 40-202
).
There is no anticipated fiscal impact to the state General Fund
associated with this legislation.
Provisions
Integrated
Resource Plan
1.
Requires the ACC to require an electric public service corporation in
this state to prepare and submit a plan to the ACC for review and approval at
least once every three years.�
2.
Requires the plan to:
a)
project
energy demand for the next 15 years, including at least three scenarios that
project low, medium and high load growth scenarios;
b)
summarize
and quantify all existing electric generation plants the public service
corporation uses to meet existing and future demands, less any planned
retirements, and identify each electric generation plant that is scheduled to
retire or that the ACC has approved to retire within the next 15 years;
c)
identify
all electric generation plants that are not yet constructed or that are not
currently owned, operated or used by the public service corporation and that
could be constructed or could be purchased, operated or otherwise used or
relied on to meet the difference between existing generating capacity and
future energy demand in the next 15 years;
d)
analyze
the total estimated capital and operating expenditures for each electric
generation plant, combination of plants and combination of ownership structures
over the useful life of each plant or combination of plants;
e)
analyze
the total reliability value, including effective load carrying capability, for
each electric generation plant and combination of plants to ensure reliable
electric service is available to retail electric customers in each year for the
next 15 years;
f)
determine,
using the ratepayer impact measure test, the combination of electric generation
plants and ownership structures of the plants and that result in:
i.
the lowest overall lifetime revenue requirement for the electric public
service corporation over the useful life of the relevant plants;
ii.
the safest and most reliable electric service for retail electric
customers in each of the next 15 years; and
iii.
the intent or design not being meant to satisfy any carbon or emissions
reduction goal;
g)
provide
a cost analysis, when evaluating total estimated capital and operating
expenditures, that assumes any subsidies, grants or credits that are currently
available to the public service corporation will continue to be available to
the public service corporation over all or part of the next 15 years;
h)
require
the cost analysis to take into consideration the statutory deadlines and a cost
analysis that assumes subsidies, grants or credits will not be available to the
public service corporation over the next 15 years;
i)
provide,
as a separate analysis and if feasible, the total estimated upstream and
downstream carbon dioxide emissions and greenhouse gas equivalents of each
electric generation plant and combination of plants over the useful life of
each plant and includes:
i.
scope emissions, scope 2 emissions and scope 3 emissions for each plant;
ii.
the parts, minerals, metals, materials and components of each plant; and
iii.
the manufacture, production, transportation, decommissioning and
recycling of each plant and each plant's respective parts, minerals, metals,
materials and components; and
j)
include
a description of all modeling assumptions that are used in each portfolio.
Independent
Third-Party Evaluation
3.
Requires the ACC, before the approving or denying a public service
corporation's plan, to obtain and review an evaluation that is conducted by an
independent third party.
4.
Requires the evaluation to verify the public service corporation's
information provided by the plan.
5.
Requires the evaluation to present alternative information, estimates,
analyses, evaluations or assumptions related to:
a)
the
public service corporation's low, medium or high load growth scenarios;
b)
the
public service corporation's estimate of total capital and operating
expenditures for each plant or a combination of plants or ownership structures
for those plants over the useful life of each plant;
c)
the
public service corporation's measure of reliability, such as effective load
carrying capacity for a plant or combination of plants; and
d)
whether
the public service corporation could safely and reliably meet projected demand
at a lower cost with less capacity if more reliable and dispatchable sources of
power were included.
6.
Requires the evaluation to use the ratepayer impact measure test, makes
a recommendation regarding the combination of plants and ownership structures
for those plants that result in the lowest overall lifetime revenue requirement
and reliability requirements.
7.
Deems, the ACC's decision is not binding on future rate cases if the ACC
approves a plan.
8.
Requires a plan that complies with the prescribed requirements� and that
has been approved by the ACC, to serve as evidence of all relevant conditions
known, or that in the exercise of reasonable judgment could have been known, by
an electric public service corporation during the three year period between
plans, unless the public service corporation provides substantial evidence of
new or alternative conditions that the public service corporation became aware
of after the ACC approved the plan.
9.
Allows the ACC to include additional requirements relating to the plan
and evaluation.
Request for
Proposals
10.
Requires
an electric public service corporation to the request for proposals to the ACC
for approval, in addition to any other requirements imposed by the ACC by rule,
before issuing a request for proposals for the generation of electricity.
11.
Requires
a request for proposals to be competitive, technology agnostic and open to all
types of generation.
12.
Prohibits
a request for proposals from including any criteria that would discriminate
against a resource on the basis of carbon emissions.
13.
Requires,
to the maximum degree practicable, a request for proposals to prioritize
reliability and affordability and be designed to result in contracts for
resources that provide reliable electricity at the lowest cost.
14.
Requires
the ACC to appoint an independent monitor to oversee each request for proposal
to ensure compliance with the prescribed requirements.
15.
Requires
an electric public service corporation to report to the ACC the result of a
request for proposals including the resources the electric service corporation
contracted and evidence supporting that resource or the resources being
selected instead of other proposed resources.
Miscellaneous
16.
Defines
commission, electric generation plant, electric service,
and
retail
electric customer.
17.
Defines
ratepayer impact measure test
as a test that measures the change in
customer bills or rates due to changes in the utility's capital and operating
expenses caused by the utility's investment or procurement decisions in a
particular electric generation plant, combination of plants or combination of
ownership structures associated with the plants.
18.
Becomes
effective on the general effective date.
House Action
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Prepared by Senate Research
March 13, 2026
SB/NRG/hk
Current Bill Text
Read the full stored bill text
HB2912 - 572R - H Ver
House Engrossed
utility; resource
plan; commission review
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2912
AN
ACT
amending title 40, chapter 1, article 1,
arizona revised statutes, by adding sections 40-113 and 40-114;
relating to the corporation commission.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Title 40, chapter 1, article 1,
Arizona Revised Statutes, is amended by adding sections 40-113 and 40-114, to
read:
START_STATUTE
40-113.
Integrated resource plan; third-party evaluation; definitions
A. The commission shall require an
electric public service corporation in this state to prepare and submit an
integrated resource plan to the commission for review and approval at least
once every three years.� The plan shall:
1. Project energy demand for the next
fifteen years, including at least three scenarios that project low, medium and
high load growth scenarios.
2. Summarize and quantify all
existing electric generation plants the public service corporation uses to meet
existing and future demands, less any planned retirements, and identify each
electric generation plant that is scheduled to retire or that the commission
has approved to retire within the next fifteen years.
3. Identify all electric generation
plants that are not yet constructed or that are not currently owned, operated
or used by the public service corporation and that could be constructed or
could be purchased, operated or otherwise used or relied on to meet the
difference between existing generating capacity and future energy demand in the
next fifteen years.
4. Analyze the total estimated
capital and operating expenditures for each electric generation plant,
combination of plants and combination of ownership structures that are
identified pursuant to paragraph 3 of this subsection over the useful life of
each plant or combination of plants.
5. Analyze the total reliability
value, including effective load carrying capability, for each electric
generation plant and combination of plants that are identified pursuant to
paragraph 3 of this subsection to ensure reliable electric service is available
to retail electric customers in each year for the next fifteen years.
6. Using the ratepayer impact measure
test, determine the combination of electric generation plants and ownership
structures of the plants that are identified in paragraph 3 of this subsection
and that result in all of the following:
(
a
) The lowest
overall lifetime revenue requirement for the electric public service
corporation over the useful life of the relevant plants.
(
b
) The safest
and most reliable electric service for retail electric customers in each of the
next fifteen years.
(
c
) The intent
or design not being meant to satisfy any carbon or emissions reduction goal.
7. When
evaluating total estimated capital and operating expenditures pursuant to
paragraph 4 of this subsection, provide a cost analysis that assumes any
subsidies, grants or credits that are currently available to the public service
corporation will continue to be available to the public service corporation
over all or part of the next fifteen years.� The cost analysis shall take into
consideration the statutory deadlines and a cost analysis that assumes
subsidies, grants or credits will not be available to the public service
corporation over the next fifteen years.
8. As a separate analysis and if
feasible, provide the total estimated upstream and downstream carbon dioxide
emissions and greenhouse gas equivalents of each electric generation plant and
combination of plants that are identified pursuant to paragraph 3 of this
subsection over the useful life of each plant and includes all of the
following:
(
a
) Scope 1
emissions, scope 2 emissions and scope 3 emissions for each plant.
(
b
) The
parts, minerals, metals, materials and components of each plant.
(
c
) The
manufacture, production, transportation, decommissioning and recycling of each
plant and each plant's respective parts, minerals, metals, materials and
components.
9. Include a description of all
modeling assumptions that are used in each portfolio.
B. Before the commission approves or
denies a public service corporation's integrated resource plan, the commission
shall obtain and review an evaluation that is conducted by an independent third
party and that does all of the following:
1. Verifies the public service
corporation's information provided pursuant to subsection A of this section.
2. Presents alternative information,
estimates, analyses, evaluations or assumptions related to:
(
a
) The public
service corporation's low, medium or high load growth scenarios.
(
b
) The public
service corporation's estimate of total capital and operating expenditures for
each plant or a combination of plants or ownership structures for those plants
over the useful life of each plant.
(
c
) The public
service corporation's measure of reliability, such as effective load carrying
capacity for a plant or combination of plants.
(
d
) Whether the
public service corporation could safely and reliably meet projected demand at a
lower cost with less capacity if more reliable and dispatchable sources of
power were included.
3. Using the ratepayer impact measure
test, makes a recommendation regarding the combination of plants and ownership
structures for those plants that result in the lowest overall lifetime revenue
requirement and reliability requirements as prescribed in subsection A,
paragraph 6 of this section.
C. If the commission approves a
public service corporation's integrated resource plan, the commission's
decision is not binding on future rate cases.
D. An integrated resource plan that
complies with this section and that has been approved by the commission shall
serve as evidence of all relevant conditions known, or that in the exercise of
reasonable judgment could have been known, by an electric public service
corporation during the three year period between integrated resource plans,
unless the public service corporation provides substantial evidence of new or
alternative conditions that the public service corporation became aware of after
the commission approved the integrated resource plan.
E. the commission May include
requirements in addition to those required by this section.
F. For the purposes of this section:
1. The following terms
have the same meanings prescribed in section 40-201.
(
a
) "Commission".
(
b
) "Electric
generation plant".
(
c
) "Electric
service".
(
d
) "Retail
electric customer".
2. "Ratepayer impact measure
test" means a test that measures the change in customer bills or rates due
to changes in the utility's capital and operating expenses caused by the
utility's investment or procurement decisions in a particular electric
generation plant, combination of plants or combination of ownership structures
associated with the plants.
END_STATUTE
START_STATUTE
40-114.
Request for
proposals; requirements
A. In addition to any other requirements
imposed by the Commission by rule, before issuing a request for proposals for
the generation of electricity, an electric public service corporation shall
provide the request for proposals to the commission for approval.
B. A Request for proposals shall be
competitive, technology agnostic and open to all types of generation and may
not include any criteria that would discriminate against a resource on the
basis of carbon emissions.
C. to the maximum degree practicable,
a request for proposals shall prioritize reliability and affordability and be
designed to result in contracts for resources that provide RELIABLE electricity
at the lowest cost.
D. the commission shall appoint an
independent monitor to oversee each request for proposal to ensure compliance
with the requirements of this section and any other requirements imposed by the
commission by rule.
E. an electric public service
corporation shall report to the commission the result of a request for
proposals including the resources the electric service corporation contracted
and evidence supporting that resource or the resources being selected instead
of other proposed resources.
END_STATUTE