Arizona Corporation Commission Rejects Utilities' Integrated Resource Plans

LCG, March 22, 2018--The Arizona Corporation Commission last week rejected the Integrated Resource Plans (IRPs) filed by Tucson Electric Power Co. (TEP), sister utility UniSource Energy Services (UNS) and Arizona Public Service Co. (APS) and has ordered them to develop plans that reduce their dependence upon natural gas and new, gas-fired power plants. The Commission prefers greater reliance on renewable energy and storage.

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Get a good picture of ERCOT in LCG’s newly released 2018 ERCOT Outlook

LCG, March 21, 2018 --Texas continues to experience an unprecedented transformation in its energy industry. The state saw record wind energy production in 2017 and will continue to see wind growth through 2018. Large transmission projects and upgrades have taken place. New import and export capabilities are on the horizon, such as through the integration of Lubbock Power & Light and the possible Southern Cross transmission project.

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Industry News

Southern Power's 120-MW Solar Project Commences Operation in Texas

LCG, April 6, 2017--Southern Company subsidiary Southern Power yesterday announced the commercial operation of the 120-MW East Pecos Solar Facility in Pecos County, Texas. Austin Energy will purchase the energy and associated renewable energy credits (RECs) under a 15-year power purchase agreement (PPA), which it plans to apply to meet Austin City Council goals for renewable energy and carbon reduction.

The East Pecos Solar Facility facility is located on an approximately 1,000-acre site and includes approximately 1.2 million solar photovoltaic (PV) panels manufactured by First Solar, which built and will operate and maintain the facility. Initially, First Solar announced the signing of its PPA with Austin Energy in October 2015, and project construction then began in February of 2016.

The solar project fits Southern Power's business strategy of growing its wholesale business through the acquisition and construction of generating assets substantially covered by long-term contracts.

Southern Power's President and CEO stated, "The East Pecos Solar Facility joins our growing renewable fleet in Texas, and we look forward to operating it for the benefit of our customers. By providing clean, affordable, wholesale generation, we are able to deliver on our promise to help build the future of energy."

Austin Energy's General Manager stated, "Austin Energy was an early adopter of West Texas wind power and is pleased to take delivery of the power generated by the East Pecos Solar Facility. We currently supply more than 30 percent of our customers' needs from renewable power and are well on our way to our target of 55 percent supply by 2025."
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