Inside the Minds: Client Strategies for Alternative Energy and Efficiency
December 2008

Challenges and Benefits of Helping Clients Go Green

Energy Production and Energy Efficiency

Many of our clients face increasing challenges regarding energy efficiency and energy production. We focus on two types of clients in this chapter—energy producers and energy consumers. In Arizona, for energy users, the most difficult thing is keeping your facility cool enough for the manufacturing process to take place, whether for your personnel or the general operation. What drives our clients’ challenges is the rising cost of energy use and greenhouse gases. The future for our clients in terms of how greenhouse gases will be regulated and the limits that will be placed on those emissions are of particular concern. Clients who are developing solar or other renewable energy generating facilities are challenged by the uncertainties of the law and the ever-rising costs. The ultimate nature of federal and state tax policies will have a major impact on the economics of these projects. Tax policy also will affect a utility’s decision to build its own facilities or sign long-term purchase power agreements with developers of renewable energy generating facilities.

For our clients who produce energy, their challenges arise from the specific rules established by the Arizona Corporation Commission, which we refer to in the acronym REST. The REST rules require our energy utilities to use renewable sources to generate a portion of their energy portfolio.

The Arizona Corporation Commission is charged by the Arizona Constitution and legislature to regulate the rates charged to customers for the delivery of utility services. Our energy production clients are looking for new and innovative ways to meet those regulations. We represent several companies that produce and sell energy to our public service corporations.

View the entire chapter in PDF format here.