Commission Doubles Down on Fossil Fuels Locks Arizonans into Paying for Decades of Fuel Costs, Guts Renewable Standards

Phoenix, Ariz. - Today the Arizona Corporation Commission (ACC) approved conversions of two coal-fired power plants to burn methane gas without reviewing the environmental impacts of those changes, leaving customers paying fuel costs for decades. The Commission also voted to repeal Arizona's Renewable Energy Standard and Tariff (REST), which has supported the development of renewable energy like solar power, bringing clean energy jobs and investment to Arizona.

In its meeting, the ACC approved utility Tucson Electric Power's (TEP) plan to convert its two coal units at the Springerville Generating Station to burn methane gas by 2030, approving an amendment to the plant's Certificate of Environmental Compatibility (CEC) without sufficient studies of the project's environmental impacts. TEP did not provide a study of the project's water use or greenhouse gas emissions, and didn't disclose how many decades the plant would operate. The Commission approved the project without holding a hearing where additional information would be public.

The ACC also approved Salt River Project's (SRP) plan to convert the coal-fired Coronado Generating Station to burn gas by 2029, again without holding a hearing to review the project's environmental impacts. The approval of these methane gas conversions reflects a dangerous pattern - rather than investing in more solar power, the cheapest form of energy, utility companies are increasing gas power plant capacity, leaving customers to pay the costs and bear the risk of volatile fuel prices. According to Sierra Club's planned gas tracker, Arizona is one of the states with the most planned gas power plant capacity.

The Commission also voted to repeal Arizona's REST, which has supported development of clean, affordable energy sources like solar and wind, which are among the lowest-cost power sources in Arizona. Deleting the REST risks undermining the development of renewable energy in Arizona, which has created thousands of good jobs and resulted in cheaper, cleaner energy for ratepayers. Repealing the REST may slow Arizona utilities' transition from polluting fossil energy sources to clean energy, and is likely to result in higher costs for ratepayers.

"The ACC is straying further from its responsibilities to serve Arizonans and to ensure affordable energy resources, plus they are dismantling established processes that provide the public with information and opportunity to comment in order to fast-track projects without public input or environmental analysis," said Sandy Bahr, Director of Sierra Club's Grand Canyon Chapter."The Commission is irresponsible and out of control, prioritizing utility profits and investors over ratepayers, reflecting a pattern of doing the bidding of Arizona utilities."

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