HB 2738 Arizona House · 57th Legislature - First Regular Session

electric utility customers; carbon reduction

HB 2738 (Electric utility customers; carbon reduction) would allow Arizona residential and business electricity customers to switch to a different provider within their current utility's service area if their current utility declares a goal to replace reliable power sources (like natural gas or nuclear) with intermittent ones (like solar or wind). The bill requires the state utility commission to create rules for customers to petition to switch providers and for alternative providers to offer safe, affordable, and reliable service in the same area. The bill failed to pass on March 5, 2025, after advancing through committee and chamber votes. It did not become law and would not have affected current utility operations.

Issues: ✗ Environment

Bill status passed 2 of 4 stages cleared

Introduction

Feb 2025

Committee Review

House Failed

Mar 2025

Governor

Introduced Feb 10, 2025 Last action Mar 5, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → House Engrossed Version · 5 edits · Mar 5, 2025

MODERATE

The bill was reformatted and expanded to clarify when customers can opt out of their electric provider. The original version allowed opt-out only if a utility declared a carbon reduction goal to shareholders or committed to replacing reliable sources with intermittent ones. The new version adds specific triggers like committing to net zero in SEC filings or integrated resource plans, and compensating executives based on clean energy commitments. It also adds definitions for 'Net Zero' and clarifies that the opt-out applies to the utility, its holding company, or parent company.

Scope change

The bill's scope expanded to include holding companies and parent companies as triggers for customer opt-out rights, and added specific conditions like SEC filings and executive compensation tied to clean energy.

ELIGIBILITY

Added holding companies and parent companies as entities whose actions trigger customer opt-out rights.

REQUIREMENT

Added specific triggers for opt-out eligibility, including net zero commitments in SEC filings or integrated resource plans, and executive compensation tied to clean energy.

DEFINITION

Added a definition for 'Net Zero' as committing to net zero carbon emissions by providing 100% clean and carbon-free electricity.

Changed capitalization in definitions to clarify that terms like 'commission', 'Electric Service', 'Net Zero', 'retail electric customer', and 'Service territory' have the same meanings as in section 40-201.

TECHNICAL

Removed the requirement that a utility must declare a carbon reduction goal to shareholders or commit to replacing reliable sources with intermittent sources as the sole trigger for opt-out.

Floor votes · House Mar 5, 2025

How they voted

26–32

Failed · 2 other

Total votes 60

Mar 5, 2025

D Democratic27

26 Nay 1

96% Nay

R Republican33

26 Yea 6 Nay 1

78% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 5, 2025

Lower · Passed

PASSED

lower

Mar 3, 2025

Lower · Passed

DPA

lower

Feb 18, 2025

Lower · Passed

DPA

lower

1 primary · 0 co-sponsors