The Arizona Corporation Commission voted unanimously during the August 14, 2025 Open Meeting, to direct Staff to take the next step to repeal of the Renewable Energy Standard and Tariff (REST) Rules (A.A.C. Title 14, Chapter 2, Article 18). The rules were established by the Commission in 2006, and require electric utilities to generate a certain percentage of their electricity from renewable resources, reaching 15% by 2025. “The idea that the deployment of renewables in Arizona will come to a halt if REST is repealed is doom and gloom fear-mongering at its worst,” said Chair Thompson. “If renewables are truly the most affordable and reliable option, as we are frequently reminded by advocates, the generational technology should be able to prevail on its own without the need for mandates that have added millions of dollars in extra costs for ratepayers each year.”

Arizona’s two largest regulated electric utilities have already met or exceeded the REST rules requirement.  Arizona Public Service Company (APS) reports about 19% of its energy portfolio contains renewable energy sources in 2024, in 2023 that number was 13%.   Tucson Electric Power Company (TEP)- reports that about 29% its energy portfolio included renewable sources in 2024, in 2023 it was 27%. 

Chairman Kevin Thompson initiated the repeal process in 2023, and it has taken nearly 2 years to reach this pivotal point. Following Thursday’s vote, the Commission Staff must file a Notice of Rulemaking Docket Opening with the Office of Secretary of State by September 19, 2025.  The Commission will hold three public comment sessions regarding the repeal of the REST Rules on November 10, 2025 in Tucson, November 12, 2025 telephonically, and November 13, 2025 in Phoenix. Interested persons may file written comments with the Commission’s Docket Control or attend one of the public comment proceedings.