Court rejects Goldwater lawsuit on renewable energy standards
Phoenix Business Journal - by Patrick O'Grady
The Arizona Corporation Commission has the authority to set renewable energy standards and allow utilities to collect tariffs to meet them, a Maricopa County Superior Court judge has ruled.
The ruling, filed Wednesday morning by Judge Joseph B. Heilman, affirmed the ability of the ACC to set such standards, despite a lawsuit brought by the Goldwater Institute on behalf of several Arizona Public Service Co. clients.
The ruling is a win for the ACC and the state’s solar industry, as the pending lawsuit had been one of the roadblocks to the location of manufacturing and research facilities in the state.
“It is extremely important that it sends the right signal that we are moving forward on the path toward renwable energy sources,” ACC Chairwoman Kris Mayes said.
Goldwater litigation director Clint Bolick said the decision sustained “an unprecedented power grab by a renegade agency.”
Heilman ruled that the commission has the authority to set the standards as part of its ratemaking and policy authority granted by the state’s constitution. He also said that while the institute’s lawsuit claimed that policy direction was in the hands of the Legislature, no such rules have been forthcoming leaving the matter to the ACC.
Heilman said the ACC has the authority to write the rules, but did not answer the question of whether the Legislature has exclusive or concurrent power with the ACC to set energy policy.
Mayes said the important piece for the ACC is that the renewable energy standards come under its ratemaking authority, and that constitutional authority cannot be interfered with by the Legislature.
Other commissioner’s welcomed the ruling as a way to spur renewable energy development.
“The superior court has rightfully determined that the REST rules are constitutional; now the commission must ensure they are efficient,” said Commissioner Gary Pierce. “Ratepayers deserve the best renewable energy value for their dollar.”
The ACC instituted the standards in 2006 requiring all utilities that it oversees to provide 15 percent of their power from renewable sources by 2025. In order to do that, many of the utilities, including Arizona Public Service Co., raised funds through special tariffs associated with renewable energy.
The Goldwater lawsuit was filed on behalf of several APS customers.
The institute originally filed the lawsuit with the Arizona Supreme Court in an attempt to expedite the matter, but it was rejected because it had not gone through the lower courts.
Commissioner Paul Newman said the decision allows the state to move forward with solar and other renewables.
“This ruling gives the ACC the necessary tools to incentivize and grow the solar and wind energy industry in Arizona,” he said.
While an appeal may still be in the cards for the institute, Bolick said the Legislature should create state energy policy, instead of letting it fall to the ACC.
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