Natural Gas Plans Hit Snag For Arizona Utility

By Frank Andorka, Senior Correspondent

What Happened: In a move the surprised many, the Arizona Corporation Commission (ACC) told APS, the state’s largest utility, to get more of its electricity from renewables instead of natural gas.

  • The plans presented by APS submitted to the commission planned to add 5.3 GW of natural gas generation by 2032.
  • In contrast, APS planned to add only 183 MW of renewables to the portfolio.
  • The commissioners, who are sometimes accused of being too chummy with the utility they regulate, told APS unequivocally to stop fooling around and add more renewables to their generation portfolio.

SolarWakeup’s View:  When I first read about the Arizona Corporation Commissioners’ decision to halt (at least temporarily) the Arizona Public Service (APS) plan to almost double its natural gas portfolio in favor of renewables, I thought it must have been a typo. Most of what I’ve read out of the state in recent years has centered on the sometimes cozy relationship the commissioners have with the state’s biggest utility.

After I realized Yann Brandt was not, in fact, punking me, I stood and cheered.

Instead of going along with APS’ 15-year resource plan, the commissioners instead told them to join the 21st century and draw up plans to acquire more renewable energy in its portfolio. And let’s be honest: With the highest insolation rates anywhere in the country, solar is just a natural fit for the state.

From E&E News and writer Benjamin Storrow comes the following note from an environmental activist:

“I don’t want to overstate national implications, but I do think it’s recognition that continued investment in natural gas is risky,” said Stacy Tellinghuisen, a senior climate policy analyst at Western Resource Advocates. “Commissioners are seeing clean energy is cheaper. They’re seeing that’s what the public wants. So I think this decision reflects all those factors.”

The battle over solar – particularly rooftop solar – has been bitter and brutal in The Grand Canyon state, with one commissioner saying that the fight over net metering (one that ended with significant changes being made that have made residential rooftop solar a harder sell) was something he never wished to be involved in again. Over time, many solar advocates in the state have worried aloud about what the state would do in terms of building a sufficient reneweable infrastructure or hold APS responsible.

It’s only one instance, this temporary natural gas moratorium, but maybe it signals a longer-term vision by the ACC that will place solar at the front and center of the clean energy infrastructure debate in Arizona once again.

More:

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