AZ HB2790

Prohibits the Arizona Corporation Commission from requiring public service corporations to implement energy efficiency standards unless those standards are cost-effective to ratepayers.

Requires the Commission to evaluate whether specific energy efficiency programs proposed by public service corporations are cost-effective before requiring the corporation to reach a specific energy efficiency standard.

Defines "cost-effective" as total incremental benefits exceeding total incremental costs over a five-year period.

Defines "incremental benefits" as the cost of electricity directly and actually avoided by the energy efficiency program.

Defines "incremental costs" as all support and operational costs, performance incentives, and unrecovered fixed costs to the utility of the energy efficiency program.