4 days ago
Mayes hints at possible legal action if Corporation Commission repeals renewable energy mandate
Attorney General Kris Mayes signaled she might take the Corporation Commission to court if it dismantles renewable energy standards she helped create nearly 20 years ago.
Why it matters: The future of Arizona's renewable energy mandate is on the line.
The big picture: The commission last year instructed staff to draft rules that would repeal its renewable energy standards, saying they're unnecessary and appear to drive up costs.
The Renewable Energy Standard and Tariff (REST) Rules require affected utilities to get 15% of the electricity they provide from renewable sources.
Staff in late July issued a formal proposal to repeal the standards.
Driving the news: Mayes on Monday sent a letter to the commission warning that repealing REST "isn't just nonsensical; it's unlawful."
REST isn't perfect, the AG concedes, and she would "wholeheartedly support" efforts to modernize the rules, but she opposes outright repeal.
A spokesperson for Mayes declined to comment on whether she'll sue the commission if it votes to repeal the standards.
Flashback: Mayes was a Republican member of the commission — she's now a Democrat — when it passed the REST rules in 2006.
She was part of the 4-1 majority that voted for the standards.
Zoom in: A third-party economic analysis performed for the commission found that REST repeal "could marginally reduce monthly residential electric bills" by $1-$2 and result in minor administrative cost savings for utilities.
But renewable energy-related costs for some utility customers would continue due to long-term financial obligations.
And repeal would have indirect costs including "reduced transparency, regulatory certainty and potentially slower renewable energy adoption," the analysis said.
Between the lines: Mayes argued in her letter that REST helps keep customer rates lower for millions of Arizonans and creates jobs in the renewable energy sector.
She said rate-making decisions must legally be based on "high-quality evidence, not speculation and conjecture."
"In addition to being bad policy, repealing the REST Rules as proposed here is an unlawful abdication of the Commission's duty to set just and reasonable rates," she wrote.
The other side: Commission chair Kevin Thompson told Axios he's not surprised Mayes is "rattling her saber, considering she played a pivotal part in implementing this gravy train that has cost ratepayers billions of dollars."
He said his focus is on protecting ratepayers and not pushing "costly ideological mandates."
Commission vice chair Nick Myers said he's unconcerned about a lawsuit if the commission repeals REST. "We'll let her do what she thinks she needs to do, and if she has legal grounds, bring them up," he said.
Reality check: Renewable energy accounts for about 19% of the energy that Arizona Public Service, the state's largest utility, provides its electric retail customers, the company tells Axios.
What's next: The commission will vote at a Thursday meeting on whether to instruct staff to begin the repeal process.
