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APS’s Track and Record Proposal for Renewable Energy Credit Compliance

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The essentials

  • In its 2013 REST implementation plan submitted to the Arizona Corporation Commission, Arizona Public Service (APS) proposed eliminating all incentives for distributed generation (DG) renewable energy systems.
  • Under the REST, regulated utilities such as APS are required to obtain a certain amount of Renewable Energy Credits (RECs). One REC is created for every kilowatt hour generated, and is the property of the owner of the distributed generation system.
  • APS currently purchases its RECs by offering cash incentives to DG owners. Without incentives, APS will be unable to obtain the required amount of RECs.
  • APS proposes severing the relationship between generation of energy and ownership of RECs. Instead, APS proposes demonstrating compliance with the REST by tracking and recording all distributed energy production that is interconnected within its service territory.
  • Critics argue this would violate the REST and constitute a government taking of private property.