PHOENIX — A report released last month by the Arizona Corporation Commission indicates utility customers could pay an extra $50 by 2050 if the state required power companies to depend entirely on renewable energy.
The commission had asked Ascend Analytics to estimate how customers of Arizona Public Service and Tucson Electric Power would be affected if Arizona mandated companies to reduce 100% of their greenhouse gas emissions over the next three decades.
Results show APS payers would be charged up to $50 more per month and TEP customers would pay somewhere between $16 and $58 more each month.
Ascend found that the most significant cost increases would occur between 2040 and 2050 when the utilities would have to achieve between 80 to 100% clean energy. This is due to the need to convert natural gas-fired power plants to burn expensive green hydrogen, the report states.
Ascend accounted for inflation in its estimations of potential rate changes.
“In 2050 dollars, $60 is equivalent to about $30 in today’s dollars,” the consultants stated.
The commission is now seeking public feedback on the report's findings and will be hosting virtual town halls this week on the following days:
- Tuesday, Sept. 21 at 6 p.m.
- Wednesday, Sept. 22 at 6 p.m.
- Saturday, Sept. 25 at 1 p.m.
Residents can participate in the meetings by clicking on links listed on the ACC website.
The commission, which is tasked with regulating Arizona's utility companies, voted in April to conduct an independent study to analyze how renewable energy would change local utility rates.
During a meeting in May, the commission voted 3-2 to amend Arizona's energy standards to require utility companies to become 100% carbon-free by 2070.
The amendment has resulted in the ACC going through a lengthy review process, involving the solicitation of more public feedback before it takes a final vote on adopting the energy rules.
“Now that we have the cost information we’ve requested, we can discuss the pros and cons of the proposed clean energy objectives openly and transparently and let customers guide our decision on whether to adopt the proposed rules,” ACC Chairwoman Lea Márquez Peterson said last month.
Ascend additionally calculated the costs of setting a renewable energy mandate at 80% by 2050. In this scenario, the results show APS customers would pay between $12 and $18 more per month and TEP users would pay up to $40.
The overall cost to Arizona's utility customers will still depend on several factors including a power company's financial health, innovations in technology, and changes to time-of-use rates.
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