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Terry Goddard Approves Ambitious New Rules Promoting Energy Efficiency

(Phoenix, Ariz. - Oct. 30, 2010) Attorney General Terry Goddard today announced that he has approved new rules drafted by the Arizona Corporation Commission that will improve energy efficiency for customers and spur job growth in green construction and in refurbishing homes and businesses.

The rules include an Energy Efficiency Standard, which specifies the amount of electricity that Arizona utilities are required to save through their energy efficiency programs from 2011 to 2020. By 2020, the utilities will be required to save at least 22 percent of the electricity they sell to customers.

The required energy savings will be achieved through energy efficiency programs the utilities offer to their residential and business customers. The utilities will expand existing programs and launch new, job-creating programs in order to meet the Energy Efficiency Standard.

For example, electric companies may offer programs for both existing and new homes, with rebates and financing to help customers pay for energy efficiency measures such as insulation, new heating and cooling systems, plugging home leaks and better lighting. Such programs will provide construction and other jobs throughout the State.

“These rules will help Arizona consumers and businesses save on their utility bills,” Goddard said. “They will also create local jobs in our communities as businesses and homes are retrofitted to improve efficiency.”

Attorney General Goddard has the responsibility for making sure that rules adopted by the Commission comport with Arizona law, including the Commission’s rate-making authority under Article XV, Section 3 of the Constitution.

The Arizona Energy Efficiency Standard is among the most ambitious requirements for energy savings approved by any state in the country, according to the Southwest Energy Efficiency Project (SWEEP).

“These new and expanded energy efficiency programs will save between 5 percent and 30 percent on a customer's utility bill,” said Kris Mayes, chairwoman of the Arizona Corporation Commission. “Overall, Arizona consumers and businesses will save billions through lower electric bills.”

Ten days ago, Goddard also approved the Corporation Commission’s Integrated Resource Planning Rules, which will change how utilities analyze the costs associated with the fuels they use and will encourage the development of cleaner, renewable technologies.

“Together, the rules passed this year by the Corporation Commission and approved by me will be historic in their significance. They will put Arizona at the forefront of energy efficiency, solar, wind and other renewable technologies,” Goddard said.

For more information, contact Steve Wilson of the Attorney General’s Office at (602) 542-8351 or Rebecca Wilder of the Arizona Corporation Commission at (602) 542-0844.