1. Electric Vehicle Policy: Role of the Arizona Corporation Commission
Patrick LaMere
Executive Consultant
November 5, 2018

2. Agenda Role of the Arizona Corporation Commission (ACC)
Electric Vehicle History
Utility EV Efforts
2018 EE Plans
Arizona Energy Standards
Modifications to the ACC’s Energy Rules
The Rulemaking Process
Issue/Concerns

3. Arizona and the ACC
The ACC oversees the electric power industry in Arizona. All electric companies that fall within the jurisdiction of the Arizona Corporation Commission must abide by the rules and regulations of Title 14, Article 2 of the Arizona Administrative Code.
Current AZ Policy:
Offers PEV access to high-occupancy vehicle lanes and carpool parking spaces
Provides tax credits for vehicle purchase and recharger installation
2017: Regional Electric Vehicle Plan for the West

4. Notable EV Efforts
Arizona Public Service (APS) Company’s Application for approval of proposed electric vehicle readiness demonstration project (2010)
The Commission decided to not approve the et-READY Study as proposed by the Company, citing uncertainty surrounding market penetration and customer adoption of EVs and the availability of federally-funded EV incentive programs.
Lastly filed in 2017: APS files an annual report on the status of EV adoption (in its service territory).
Plug-In Electric Vehicle (PEV) Charging Rate Incentive - Tucson Electric Power (TEP)
TEP offers a discounted residential service time-of-use (TOU) rate during off-peak periods to customers who own and operate a PEV. The discount is a 5% reduction to applicable charges during the off-peak period. Eligible customers must provide documentation for a highway- approved PEV and submit a copy of the PEV's registration annually. For more information, including the application, see the TEP TOU website.

5. 2018 Energy Efficiency Plan (EE Plan)*
Tucson Electric Power, and UNS Electric filed a Supplement to its respective proposed EE Plan setting forth considerations related towards Electric Vehicle infrastructure programs.
Proposed programs:
The Smart City EV Buildout Plan, to promote EV and to support the electrification of fleet vehicles;
The Smart Home EV Pilot Program, to install charging equipment in new and existing homes;
The Smart School EV Bus Pilot Program, which would provide up to 125% of the incremental cost of EV buses, along with charging facilities at qualifying schools and/or school districts;
The Regional Electric Vehicle Plan (“REV”), to support the development of EV interstate and highway infrastructure
The DERMS program, which is a platform enabling TEP to control and manage EV charging stations.
*Currently Pending
TEP Docket No. E-01933A
UNS Electric Docket No. E-04204A
APS DSM Plan Docket No. E-01345A

6. ACC and EV (Timeline)
Docket No. E-00000Q : Review, Modernization and Expansion of the Arizona Energy Standards and Tariff Rules and Associated Rules.
January 30, 2018: The Energy Modernization Plan
Proposed by Arizona Corporation Commissioner Andy Tobin
Comprehensive update to Arizona’s energy policies to accomplish cleaner energy resources, lower prices for consumers, and greater grid security. 
Electric Vehicles - To aid in the strategic implementation, regulated utilities shall propose electric vehicle infrastructure for Corporation Commission consideration
July 20, 2018: Commissioner Dunn asks for a new rulemaking docket to explore, develop, and propose possible revisions to current Commission energy-related rules.
August 2, 2018: “In the Matter of Commissioner Dunn’s Inquiry Into Electric Vehicles , Electric Vehicle Infrastructure, and the Electrification of the Transportation Sector in Arizona.” (Docket No. E-00000J )
On October 9, 2018, Staff filed a Memo to administratively close the docket.
EV to be considered in Docket No. RU-00000A , opened on August 17, 2018

7. Arizona Energy Standards
August 2018: Commissioners voted to move forward with the informal rulemaking process on the review, modernization, and expansion of the Arizona Energy Standards.
In the Matter of Possible Modifications to the Commission’s Energy Rules
(Docket No. RU-00000A )
Subjects Considered:
Renewable Energy Standard and Tariff Rules
Electric Energy Efficiency Standards Rules
Gas Utility Energy Efficiency Standards Rules
Resource Planning and Procurement Rules
Net Metering Rules
Interconnection of Distributed Generation Facilities
Electric vehicles
Technological Developments in Generation and Delivery of Energy
Forest Bioenergy
Baseload Security
The Statutory Biennial Transmission Assessment 
Retail Electric Competition Rules
Blockchain technology

8. The Rulemaking Process
Action/Event
Date (Standard)
Date (Complex)
ACC files to open a docket for possible rulemaking
*Written Comments may be filed by stakeholders for review
Day 1
ACC Staff develops draft of potential rules
6 Weeks
16 Weeks
Informal comments request by Staff and revisions to draft incorporated:
Staff may host workshops to discuss rules
Administrative Law Judge (ALJ) reviews rules for technical considerations
Economic Impact Statement developed
Staff dockets Proposed Order with revised draft rules attached, to obtain Commission Decision authorizing Staff to file, with the Office of the Secretary of State, a Notice of Proposed Rulemaking and Notice of Rulemaking Docket Opening. Also included:
Dates/Times of Oral Proceedings
Summary of stakeholder comments and workshops
Commission Decision Issued
Open Meeting (Within 1 Month)
Publication in the Arizona Administrative Register (“A.A.R.”)
Staff dockets Economic Impact Statement
Publication starts Formal Comment Period
3 Weeks

9. The Rulemaking Process (Continued)
Action/Event
Date (Standard)
Date (Complex)
Formal Comment Period
Staff responds to formal comments filed: days
30 Days
30-60 Days
Oral Proceedings begin following formal comment period
Held in Phoenix and Tucson
Transcripts typically available within 10 days
1 day
1-2 days
Staff dockets summary of all comments
20 Days
20+ Days
ALJ issues Recommended Opinion and Order (“ROO”)
ROO can recommend the Commission go forward with the process or terminate the rulemaking
ALJ may determine need for substantial change to proposed rules
60 days
90 Days
Commission considers ROO at Open Meeting.
If Commission Decides to move forward, Staff files a Notice of Final Rulemaking to the Attorney General or SOS.
Open Meeting (Within 1 Month)
Rules become effective (Days may differ depending on constitutional ratemaking authority.
60 Days (Max)
Duration of the Rulemaking Process from Docket Opening to Effective Date
~400 days
~550 days

10. Issues/Concerns Rate Structures to handle EV: EV charging patterns
Fixed rate tariff: Energy-based residential rate structure for customers using EVs.
Time-of-use (TOU) tariff: In this scenario, the utility seeks to influence customer behavior through rates that incentivize EV charging during off-peak hours, such as overnight, to help mitigate potential negative impacts on distribution systems.
EV managed charging: This scenario allows a utility or third party to remotely control vehicle charging — turning a charger up, down or even off — to better correspond to the needs of the grid, much like traditional demand response programs.
Cost Recovery (EV Infrastructure)
Electrification and Energy Efficiency
Potential impacts on the distribution system
Market Penetration of new EV users
Clustering, Feeder upgrades (upgrades to distribution system)
Designing programs and services that meet the needs of their EV customers (Community Engagement, Stakeholder Opportunities)
The need for Rules; Timeline Consideration of the Rulemaking Process

11. Arizona Corporation Commission
THANK YOU
Patrick LaMere
(602)
@corpcommaz
@corpcommaz
Arizona Corporation Commission