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Arizonans are experiencing the impact of recent rate increases on their electric bills. The Arizona Corporation Commission can provide some relief by requiring Arizona Public Service and Tucson Electric Power to restore and increase funding for energy efficiency programs. The Commission should oppose cuts to energy efficiency.

Even though APS and TEP recently had rate increases approved by the Arizona Corporation Commission, they have failed to maintain adequate opportunities for ratepayers to save money on their bills. APS slashed funding for its energy-saving programs, and many of TEP’s programs were scaled back. The result: higher electric bills for homes and businesses and uncertainty for local jobs, projects, and the economy.

With consumers across our state just faced with high summer electric bills, the Arizona Corporation Commission should restore and increase funding for energy efficiency programs to help ratepayers save money now and in the future. The Commission should oppose cuts to energy-saving programs.

Why the Arizona Corporation Commission Should Act

1. Energy efficiency is the quickest, cheapest and cleanest resource to meet Arizona’s growing energy needs. Other energy options on the table cost three-to-ten times more.1 In addition, energy efficiency has created more than 40,000 good-paying jobs in Arizona – ramping up as needed in local communities across our state.2 Since many of the jobs are in hands-on fields such as installation, they cannot easily be outsourced.

2. Energy efficiency is a smart investment. From 2010-2017, every $1 of ratepayer invested in energy efficiency by Arizona Public Service and Tucson Electric returned ~$4.00 in benefits to ratepayers.3 These benefits can be attributed to the reduced need to build new power plants and power lines. All Arizonans experienced these benefits — whether or not they participated directly in programs.

3. Energy efficiency is good for consumers and businesses. At a time when many ratepayers just received high summer electric bills, energy efficiency programs and rebates — such as programmable thermostats and more efficient A/C units — provide opportunities to save money. In addition to reducing bills, energy efficiency can decrease congestion on the electric grid and alleviate the need to build more costly, capital-intensive power plants.

[1] Tucson Electric Power 2017 Integrated Resource Plan, Comparison of Resource Costs from Chart 20 (p 93).

[2] The 2018 U.S. Energy and Employment Report, National Association of State Energy Officials and the Energy Futures Initiative, http://www.usenergyjobs.org.

[3] 2010-2017 Annual Demand Side Management reports of Tucson Electric Power and Arizona Public Service. Costs include: (1) Rebates and Incentives, (2) Training and Technical Assistance, (3) Consumer Education, (4) Program Implementation, (5) Program Marketing, (6) Planning and Administration, (7) Measurement, Evaluation, and Research, and (8) Performance Incentives. Numbers are for energy efficiency only and exclude the costs of demand response. Salt River Project and UNS Electric were not included.

Energy Efficiency Programs Offered by Utilities in Arizona
Arizona Public Service
Tucson Electric Power
Salt River Project
Please note SRP is not regulated by the Arizona Corporation Commission.
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