Wednesday, December 11, 2019: Today, the Arizona Corporation Commission (ACC) voted to reject a request from the state’s investor-owned utilities to set two-year contract terms for renewable energy projects under the federal Public Utility Regulatory Policies Act (PURPA). Instead, commissioners voted unanimously to set contract terms at 18 years, providing renewable energy developers the financial opportunity they need to develop new clean energy projects in the state. Environmental Law Program Senior Attorney Peter Morgan represented Sierra Club in the proceeding, which included a three-day hearing in August.
Even in a state like Arizona, where solar and battery storage could cost billions of dollars less than coal power, short PURPA contract terms -- like the two-year term proposed by utilities -- make financing far too risky for capital-intensive projects with life times of 30 years. According to industry and Sierra Club experts, long-term contracts are therefore necessary to give renewable energy developers a reasonable opportunity to secure financing for these projects.
For more, read the full press release here.