Case background:

The Arizona Corporation Commission (ACC) is established under the Arizona Constitution with limited power to regulate utility rates, but over the years it has expanded its powers beyond its constitutional jurisdiction.  Last year, the ACC adopted sweeping new rules requiring utilities to derive a specified share of their power from alternative sources.  The rules have resulted in rate surcharges to residential and business customers that will total millions of dollars.

The Goldwater Institute has asked the Arizona Supreme Court to strike down renewable energy regulations imposed by the Arizona Corporation Commission. The lawsuit, Miller v. Arizona Corporation Commission, argues that the rules exceed the Commission's limited constitutional and statutory authority, violate separation of powers and impermissibly interfere with the relationship of all utilities and their customers.

The Stakes

• The principle of limited government, wherein agency power is governed its constitutional and statutory authority. 
• The separation of powers, wherein the Arizona Legislature has responsibility for the state’s policy in regards to renewable energy unless and until it delegates that power to another agency.
• Millions of dollars in surcharges consumer must pay so that their utility can meet the ACC requirements, including $48.2 million for APS customers alone this year.

View Press Release Below

Goldwater Institute Challenges $48.2 million APS Rate Charge

Case Documents

Petition: Miller v. Arizona Corporation Commission

Case Timeline

• November 14, 2006 -- The Arizona Corporation Commission (ACC) adopts the Renewable Energy Standard and Tariff (REST) Rules.
• February 1, 2007 -- Arizona Chief Assistant Attorney Terri Skladany tells ACC that the authority it cited to promulgate the REST rules is "vague."
• March 30, 2007 -- ACC submits a memorandum in response in which it admits that there is no "isolated source of statutory or constitutional authority" to support the REST rules.
• June 15, 2007 -- The Arizona Attorney General approves the REST rules.
• August 14, 2007 -- The REST rules go into effect.
• April 28, 2008 -- The APS implementation plan for REST is approved by the ACC, and APS estimates costs of $48.2 million in 2008 and total $347 million by 2012.
• June 27, 2008 -- The Goldwater Institute asks the Arizona Supreme Court to strike down the regulations imposed by the ACC.