HB 2527 — corporation commission; electricity; reliability; management

BillHouse Number:Engrossed corporation commission;

H.B.electricity;

2527reliability; Sundareshan Floor Amendment Reference to:

management State of Arizona House engrossedof billRepresentatives AmendmentFifty-seventh draftedLegislature by:First Regular Session HOUSE BILL 2527 AN ACT AMENDING TITLE 40, CHAPTER 2, ARTICLE 7, ARIZONA REVISED STATUTES, BY ADDING SECTION 40-363;

SawyerRELATING BesslerTO FLOORPUBLIC AMENDMENTSERVICE EXPLANATIONCORPORATIONS. 1.

Requires(TEXT theOF ArizonaBILL CorporationBEGINS CommissionON (ACC)NEXT toPAGE) consider- thei benefits- ofH.B. clean renewable energy, including the benefits to ratepayers, when authorizing or approving the retirement of an electric generation facility as presented in a rate case, integrated resource plan or other submission to the ACC.

2.2527 Be it enacted by the Legislature of the State of Arizona:

Removes the prohibition on the ACC from authorizing or approving the retirement of an electric generation facility unless there is a new electric generation facility with equal or greater power generation that is presently available on the grid.

3.

Requires the ACC, when considering imminent and planned firm power closures in Arizona and other member states of the Regional Transmission Organization, to also consider how integration of wind, solar, geothermal and storage can benefit ratepayers and the grid.

4.

Removes the requirement for the ACC, if other states are not replacing a retired electric generation facility, to add the shortages to the firm power replacement calculations before approving the closure.

5.

Requires the ACC to prioritize new electric generation facilities that are from renewable, rather than dispatchable, sources ahead of proposed new generation facilities that are from nonrenewable, rather than nondispatchable, sources.

6.

Requires the ACC to project to increase renewable-generated electricity by at least percent between 2025 and 2030.

7.

Removes the requirement that the ACC project to increase dispatchable electricity by at least five percent between 2025 and 2030.

8.

Removes the requirement for the State and the ACC, if federal government regulations require costly upgrades or other requirements that lead to the closure of an existing firm power plant, to seek a waiver until there is a replacement firm power plant available to the electric grid that would replace the retired firm power plant.

Amendment explanation prepared by Sawyer Bessler 03/31/2025 9.

Removes the requirement for the State and the ACC, if a waiver is not granted, to seek an injunction or other cause of action in a court of competent jurisdiction to cease the implementation of the regulations until a replacement firm power plant is available and services the customers.

10.Removes the requirement for an electric generation facility to inform the ACC within 30 days after the electric generation facility receives notice of an external regulatory action that would make the continued operation economically infeasible or would cause involuntary retirement or decommissioning.

11.Removes the requirement for the ACC, on receipt of the outlined information relating to an external regulatory action from the electric generation facility, to open an investigatory docket to determine how an involuntary retirement or the decommissioning of an electric generation facility would impact the reliability and affordability of energy resources and recommend any necessary action to defend the electric generation facility.

12.Removes the ability of the ACC and the Arizona Attorney General to use legislative appropriations to effectuate the outlined requirements relating to electric generation facilities.

13.Removes the statement of legislative findings and intent.

14.Removes the definition of electric generation facility and firm power.

15.Makes conforming changes.

- 2 - Fifty-seventh Legislature Sundareshan First Regular Session H.B.

2527 SUNDARESHAN FLOOR AMENDMENT SENATE AMENDMENTS TO H.B.

2527 (Reference to House engrossed bill) Amendment instruction key:

[GREEN UNDERLINING IN BRACKETS] indicates text added to statute or previously enacted session law.

[Green underlining in brackets] indicates text added to new session law or text restoring existing law.

[GREEN STRIKEOUT IN BRACKETS] indicates new text removed from statute or previously enacted session law.

[Green strikeout in brackets] indicates text removed from existing statute, previously enacted session law or new session law.

<<Green carets>> indicate a section added to the bill.

<<Green strikeout in carets>> indicates a section removed from the bill.

The bill as proposed to be amended is reprinted as follows:

THE COMMISSION [SHALLMAY CONSIDER THE BENEFITS OF CLEAN RENEWABLE ENERGY, INCLUDING THE BENEFITS TO RATEPAYERS, WHEN] [MAY NOT AUTHORIZE]AUTHORIZE [AUTHORIZING] OR [APPROVE][APPROVING]APPROVE THE RETIREMENT OF AN ELECTRIC GENERATION FACILITY AS PRESENTED IN A RATE CASE, INTEGRATED RESOURCE PLAN OR OTHER SUBMISSION TO THE COMMISSION [UNLESSUNLESS THERE IS A NEW ELECTRIC GENERATION FACILITY WITH EQUAL OR GREATER POWER GENERATION THAT IS PRESENTLY AVAILABLE ON THE GRID].GRID.

WHEN ASSESSING THE AMOUNT OF REPLACEMENT POWER, THE COMMISSION SHALL CONSIDER IMMINENT AND PLANNED FIRM POWER CLOSURES IN THIS STATE AND OTHER MEMBER STATES OF THE REGIONAL TRANSMISSION ORGANIZATIONORGANIZATION. [AND HOW INTEGRATION OF WIND, SOLAR, GEOTHERMAL AND STORAGE CAN BENEFIT RATEPAYERS AND THE GRID].