Policy Success: CHP in New AZ Eletric Energy Efficiency Standard

The Arizona Corporation Commission (ACC) unanimously approved strong Energy Efficiency Resource Standards for investor-owned electric utilities as well as rural electric cooperatives in Arizona. By 2020, utilities are required to achieve energy savings of at least 20% of retail energy sales, plus up to a 2% credit for peak demand reductions from demand response programs, for a total requirement of 22% by 2020. Electric distribution cooperatives are required to meet 75% of the standard in any year.

Utilities can count energy supply from combined heat and power systems that do not qualify under the state's Renewable Energy Standards towards the standard.

Arizona joins a growing trend of adopting state energy efficiency resource standards, and it is encouraging to see CHP's strong efficiency benefits recognized in such standards.

The specific details of how CHP will count, and what incentives or programs (if any) the utilities will offer is still beng worked out. For more details, Contact Us or try inquiring at the utility.


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