HB2101- Arizona's Electric Monopolies do not want competition

Update April 27, 2022-- Today Electric companies in Arizona won't have to worry about competing for customers after Gov. Doug Ducey signed the bill described below that repeals laws allowing for Competition.  See the AZ Central article.

The current 2022 session of the Arizona Legislature has passed House Bill 2101 which would repeal most of the state’s electricity retail competition rules.  No surprise that this bill and Senate Bill 1631 are being supported by all the major Arizona electric utilities (APS, SRP, and TEP). 

In 1998 Arizona enacted a law that allowed for a phasing in of a competitive electric energy market. For various reasons this competitive market did not develop. Recently, in reaction to Texas-based Green Mountain Energy's August 2021 application to the Arizona Corporation Commission (ACC) to begin selling what they claim are 100% renewable energy plans to customers in Arizona Public Service (APS) and Tucson Electric Power's (TEP) service areas, the utilities seek to prevent that from being able to go forward. The result is HB2101/SB1631.

Specifically removed from Arizona law is the concept "It is the public policy of this state that a competitive market shall exist in the sale of electric generation service. ".

The Arizona Republic had a good opinion article on this.

The Arizona Solar Energy Industries Association (AriSEIA), a nonprofit trade association representing the solar and storage industry in Arizona, opposes HB2101.

The 9th Circuit Court of Appeals recently issued a landmark decision regarding rooftop solar. Ellis v. Salt River Project (SRP) was decided on Monday, January 31, 2022. The case is a class action lawsuit against SRP for its treatment of rooftop solar customers. In 2014, SRP announced its E-27 rate plan, which increased costs for rooftop solar customers by 65% and resulted in a decrease of rooftop solar applications by 50-96%.

Should HB 2101 become law, the statutes that the 9th Circuit relied on to rule in favor of rooftop solar customers would be eradicated and the outcome of the case would very likely be different.

The Rose Law Group, active in renewable energy, has an interesting article on how the utilities circulated a misleading “fact sheet” to legislators:

Exposed: Monopolies SRP, APS, TEP misleading legislators

TEP Distribution System Upgrade Removes DG Limits

December 7, 2021

With the recent upgrades and adjustments to the Tucson Electric Power (TEP) LAT3 13.8 kilovolt circuit in Marana, TEP is pleased to announce that all of the circuits on its local grid now have the capacity to support new residential solar projects sized at 20 kW AC and less.

This means homeowners who wish to install rooftop solar anywhere in the TEP service territory should be able to clear “Screen A” of Arizona’s Distributed Generation Interconnection Rules (DGIRs), allowing them to install systems that export excess energy to the TEP local grid.

As you may be aware, some TEP circuits were previously saturated with DG capacity exceeding levels referenced in the DGIR screening tests. Those tests compare the aggregate DG capacity on each circuit with that circuit’s peak load and minimum daytime load over the previous 12 months.

Since then, TEP has completed extensive hosting capacity studies and has made system improvements to expand capacity on circuits where new interconnection requests previously triggered additional review. All of the TEP circuits now have capacity for the addition of new residential exporting DG systems.

The TEP Energy Programs team will contact customers whose rooftop solar projects were suspended due to circuit saturation to inform them that these restrictions have been addressed and to invite them to submit their application to TEP.

TEP is committed to taking a proactive approach to surveying its system and identifying solutions to be able to accommodate additional growth.

If you have any questions, email TEP at This email address is being protected from spambots. You need JavaScript enabled to view it..