Arizona rejects APS push for 2-year PURPA contracts, approving 18-year terms

Disclosure: Rose Law Group represents the solar developers that prevailed on this issue

Utility Drive

Dive Brief:

The Arizona Corporation Commission (ACC) on Wednesday adopted an 18-year minimum contract term length for qualifying facilities (QFs) under the Public Utility Regulatory Policies Act (PURPA), saying that the lengthened period would provide these facilities with the opportunity to build capital from investors.

The decision comes despite requests from the Arizona Public Service Electric (APS) and other utilities to shorten PURPA contract terms to two years, which APS said would prevent customers from overpaying for something “they don’t need in the first place.”

Sierra Club said the decision would give renewables developers enough time to access the necessary financing for their projects. In a written statement, APS said the decision is “disappointing.”

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