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Arizona utility regulators gut energy efficiency standards that saved ratepayers $1.7 billion

With the rules now repealed, communities could have a harder time accessing those benefits.

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Arizona utility regulators repealed another major clean energy policy, ending requirements that supporters said helped residents save money and reduce stress on the power grid.

What happened?

Regulators voted to end a policy that required Arizona's regulated electric utilities to meet energy efficiency goals, as The Arizona Republic reported.

The repeal was approved by every commissioner present at the meeting. Former Chair Kevin Thompson, who had led the effort to get rid of the standards, did not attend the vote.

The decision followed another recent reversal by the same board. In March, commissioners repealed Arizona's renewable energy standard, adopted in 2006, which required regulated utilities to get 15% of their electricity from renewables including wind and solar by 2025.

Together, the two decisions mark a retreat from policies meant to cut pollution, support cleaner electricity, and help customers reduce their energy use.

"The word mandate is tossed around like it is a significant burden on ratepayers," Diane Brown, executive director of the Arizona PIRG Education Fund, a consumer advocacy group, told the Republic. "But, in fact, Arizona's energy efficiency standard has been a blessing for ratepayers, saving a net of more than $1.7 billion and over 2,000 megawatts of energy since it went into effect on Jan. 1, 2011."

Why does it matter?

Energy efficiency standards often shape the programs that help people use less electricity at home and at work. That can include support for better cooling systems, smarter energy management, and other upgrades that reduce waste.

In a state such as Arizona, where dangerous heat can keep air conditioners running for months, those savings can make a major difference. When households use less electricity to stay cool, monthly bills can become more manageable, especially for low-income families, seniors, and people living in old homes that are hard to keep comfortable.

Efficiency also benefits the grid. Reducing waste lowers demand during periods of heavy electricity use, which can improve reliability and reduce the need for more expensive power resources.

Supporters said the standards offered a relatively simple way to lower costs, reduce heat-trapping pollution, and strengthen grid reliability. With the rules repealed, communities could have a hard time accessing those benefits.

What's being done?

Even with the state standards gone, residents still have options to protect themselves against rising energy costs. Utility customers can check whether their provider offers rebates or incentives for energy-saving appliances, insulation, smart thermostats, or HVAC upgrades.

People can also lower bills by sealing drafty spots, using blackout curtains, replacing air filters regularly, and adjusting thermostats strategically during the hottest parts of the day. Renters may have fewer choices, but small items such as weatherstripping and efficient lighting can still help.

Local governments, nonprofit groups, and community organizations may also keep pushing for building improvements and consumer protections, especially in neighborhoods most vulnerable to extreme heat and high utility bills.

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