Ariz. Admin. Code § 14-2-704

Current through Register Vol. 30, No. 50, December 13, 2024

Section R14-2-704 - Commission Review of Load-serving Entity Resource Plans

A. By October 1 of each even year, Staff shall file a report that contains its analysis and conclusions regarding its statewide review and assessments of the load-serving entities' filings made under R14-2-703(C), (D), (E), (F), and (H).

B. By February 1 of each odd year, the Commission shall issue an order acknowledging a load-serving entity's resource plan or issue an order stating the reasons for not acknowledging the resource plan. The Commission shall order an acknowledgment of a load-serving entity's resource plan, with or without amendment, if the Commission determines that the resource plan, as amended if applicable, complies with the requirements of this Article and that the load-serving entity's resource plan is reasonable and in the public interest, based on the information available to the Commission at the time and considering the following factors:

1. The total cost of electric energy services;

2. The degree to which the factors that affect demand, including demand management, have been taken into account;

3. The degree to which supply alternatives, such as self generation, have been taken into account;

4. Uncertainty in demand and supply analyses, forecasts, and plans, and whether plans are sufficiently flexible to enable the load-serving entity to respond to unforeseen changes in supply and demand factors;

5. The reliability of power supplies, including fuel diversity and non-cost considerations;

6. The reliability of the transmission grid;

7. The environmental impacts of resource choices and alternatives;

8. The degree to which the load-serving entity considered all relevant resources, risks, and uncertainties;

9. The degree to which the load-serving entity's plan for future resources is in the best interest of its customers;

10. The best combination of expected costs and associated risks for the load-serving entity and its customers; and

11. The degree to which the load-serving entity's resource plan allows for coordinated efforts with other load-serving entities.

C. The Commission may hold a hearing or workshop regarding a load-serving entity's resource plan. If the Commission holds such a hearing or workshop, the Commission may extend the February 1 deadline for the Commission to issue an order regarding acknowledgment under subsection (B).

D. While no particular future ratemaking treatment is implied by or shall be inferred from the Commission's acknowledgment, the Commission shall consider a load-serving entity's filings made under R14-2-703 when the Commission evaluates the performance of the load-serving entity in subsequent rate cases and other proceedings.

E. A load-serving entity may seek Commission approval of specific resource planning actions.

F. A load-serving entity may file an amendment to an acknowledged resource plan if changes in conditions or assumptions necessitate a material change in the load-serving entity's plan before the next resource plan is due to be filed.

Ariz. Admin. Code § R14-2-704

Adopted effective February 3, 1989 (Supp. 89-1). Amended by final rulemaking at 16 A.A.R. 2150, effective December 20, 2010 (Supp. 10-4).