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Removing it Lets Utilities off the Hook for Ratepayer Energy Savings

The Arizona Corporation Commission today took a final vote to eliminate Arizona’s Electric Energy Efficiency Standards (EES), finalizing a repeal process that it started in 2025. The EES requires utilities like Arizona Public Service (APS) and Tucson Electric Power (TEP) to offer cost-effective programs that help Arizonans conserve energy and lower electric bills.

Deleting the EES means that utilities will have less incentive to invest in energy efficiency programs that have proven to successfully save customers money, and may also lead utilities to build expensive new generation infrastructure, leading to increased costs passed on to ratepayers. Sierra Club’s comments to the Commission explained that repealing the EES is likely to result in higher energy consumption and long-term utility bill increases, and an economic impact statement (EIS) prepared by the Commission’s own consultant found the same thing.

Arizonans are already witnessing utilities backslide on clean energy commitments. Repealing the EES enables utilities to ignore cheaper, cleaner energy resources to prop up fossil operations that are expensive, worsen air quality, and contribute to climate change.