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ARIZONA

SYSTEM BENEFIT FUNDS FOR ENERGY EFFICIENCY-STATE SUMMARY

SECTION LINKS
I. Policy
II. Administration
III. Financing
IV. Program information
V. Policy/Program Assessment





I. POLICY

Date Enacted: September 1, 1999

Date Effective: May 2001

Time Period: May 2001 - 2012

Extensions to Time Period: None to date

Applicable Laws, Orders, and Regulations

ACC Decision No. 61969
Rule 14-2-1608 (September 1999)
http://www.cc.state.az.us/rules/11-00rules.pdf
(See pages 65-66)

ACC Decision No. 61973 re: APS
http://www.cc.state.az.us/rules/61973.pdf

ACC Decision No. 62103 re: TEP
http://www.cc.state.az.us/rules/98471oo.pdf

Environmental Portfolio Standard (EPS)
ACC Decision 62506
http://www.cc.state.az.us/utility/electric/62506.pdf

DESCRIPTION
The Arizona Corporation Commission (ACC) instructed two investor-owned utilities, APS/PinnacleWest (APS) and Tucson Electric Power/UniSource (TEP) to collect a System Benefits Charge to fund low-income, demand-side management (DSM), consumer education, environmental, renewable, long-term R&D, nuclear fuel disposal, and nuclear decommissioning. Over time all programs except the low-income program have been transferred to an Environmental Portfolio Standard (EPS) program. At this time there is both an SBC and EPS surcharge assesed to customers. For the investor-owned utilities the bulk of these funds go to EPS programs focused mainly on renewables and less to energy efficiency. Arizona's public utility, the Salt River Project (SRP), has public benefit funding which supports a number of energy efficiency programs.

Restructuring Policy in Place (Y/N): Yes.
However, after the 2000-2001 California energy crisis, competitors exited the power market. Competition is currently not in effect because previous geographic monopolies continue, even though there are a number of small utilities serving local areas.

Date Restructured: December 1, 1998

II. ADMINISTRATION

Administering Entities
APS/PinnacleWest
Salt River Project
Tucson Electric Power/UniSource

Type of Entity: Utility (APS and TEP are investor-owned, SRP is public)

Administrative Contacts
APS - Jim Conner / Energy Analyst 602-371-6035
TEP - Denise Smith / Pricing Analyst 520-745-3431

Outreach/Customer Education
APS Energy Saving Tips
Residential
Business

SRP Energy Savings Solutions

SRP's Home Energy Manager(tm)

TEP Energy Saving Tips
Residential
Commericial

III. FINANCING

Funding Level (All SBC Programs): $28 million/yr for the EPS and SBC combined.

Funding Source: Ratepayer charge

Charge: 0.14 mills/kwh

IV. PROGRAM INFORMATION

Project Type(s)
APS - Low-income assistance, Demand Side Management, Consumer Education, Renewables (Solar)

SRP - Demand Side Management, Customer Education

SRP Efficiency Programs
Home
Business

TEP - Low-income assistance, Weatherization, Customer Education

Press Releases
APS
SRP
TEP


V. POLICY/PROGRAM ASSESSMENT

Reporting Requirement: Each utility must have its SBC and EPS surcharge rate reviewed by the PUC every 3 years.

Assessing Entity: not yet available

Report Date: not yet available

Report Name: not yet available, though utility annual reports may contain relevant information.
APS Annual report
SRP Annual Report

Status: not yet available

Assessment Contact: not yet available




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