As of August 14, 2025, the Arizona Corporation Commission voted unanimously to direct Staff to take the next step to repeal the Renewable Energy Standard and Tariff Rules (REST), which required electric utilities to deliver 15% renewable energy by 2025. [1] The rule was set by the Commission in 2006 and its targets have already been surpassed by the state’s major regulated utilities. Regulators say the rule drives up energy costs and is unnecessary. Arizona’s two largest regulated electric utilities have already met or exceeded the REST rules requirement. Arizona Public Service Company (APS) reported about 19% of its energy contains renewable energy sources in 2024, in 2023 the number was 13%. Tucson Electric Power Company (TEP) reported that 29% of its energy portfolio included renewables in 2024; in 2023, the number was 27%. The debate began when APS backed away from its pledge to go carbon free by 2050. Regulators indicate that cost concerns are at the heart of their efforts to repeal REST rules.
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