On September 27, 2007, Southwest Gas’ Distributed Generation (DG) Program was approved in Decision No. 69917. The approved DG program encourages the installation of high-efficiency Combined Heat and Power (CHP) technologies. Southwest offers a CHP incentive of $400-$500 per KW as part of its energy efficiency program. The Company offers incentives to qualifying commercial and industrial facilities who install efficient Combined Heat and Power systems (CHP). CHP systems produce localized, on-site power and heat which can be used in a variety of ways. Incentives vary based upon the efficiency of the installed system. The minimum efficiency for all systems is 60%. Contractors are also encouraged to participate in the program. Decision No. 74300, issued January 29, 2014, approved the continuation of the DG program, but did not approve the expansion of the type of eligible prime movers for CHP. Eligible prime movers include: steam turbines, reciprocating engines, and gas turbines. Micro-turbines and fuel cells are not eligible prime movers under the Program.

On January 15, 2013, Governor Jan Brewer signed an Executive Order establishing Arizona’s Master Energy Plan Task Force to help draft a master energy plan; the collaborative effort by the Governor’s Office of Energy Policy, Arizona Commerce Authority, Arizona Legislature, Arizona Corporation Commission and leading industry partners released the plan in February 2014. Among the main goals contained within the plan are the following: Increasing solar energy development through best practices and leading by example; Educating the next generation of energy professionals; Making Arizona a leader in energy-sector workforce development; Fostering statewide coordination to reduce energy consumption; Establishing an Energy Advisory Board.

On March 14, 2003, the Arizona Corporation Commission (ACC) issued Decision No. 65743 (“Track B”). In that Decision, the Commission ordered Staff to facilitate a workshop process to explore the development of a demand-side management (“DSM”) policy. Workshops were held throughout 2003 and 2004 to discuss these potential programs. On February 7, 2005, ACC Staff issued a report on demand-side policy which converted the DSM Policy into its First Draft of Proposed DSM Rules and filed the draft proposed rules in Docket No. RE-00000C-05-0230. On September 4, 2009, Staff requested that a rulemaking docket on Gas Energy Efficiency Rules be opened (Docket No. RG-00000B-09-0428). On December 10, 2010, The ACC issued an order adopting final rules on gas energy efficiency. These established natural gas efficiency standards requiring 6% cumulative savings by 2020 (Decision No. 72042). On January 2, 2011, the State of Arizona Office of the Attorney General approved the final rules. In November of 2014, the ACC proposed to remove savings goals from the state's energy efficiency requirements. This matter is currently pending.

In January 2012, the Arizona Corporation Commission granted Southwest Gas approval to implement a Customer Owner Yard Line (COYL) program as part of its general rate case settlement. The program is designed to facilitate leak surveying and, when required, replacement of customer yard lines. The program includes a cost recovery component whereby Southwest Gas defers the actual COYL capital costs and files an annual application requesting authority from the Arizona CC to implement a per therm surcharge rate to recover the revenue requirement on the deferred COYL costs.

WEC Energy Corp. subsidiary Trillium CNG owns and operates stations in Phoenix and Tucson. Through its subsidiary, Questar Fueling Co, Questar Corp. gas built a CNG station in Phoenix.

In April 2012, the ACC issued a final order in a UNS Gas rate case that included an incentive-based decoupling mechanism, called the Lost Fixed Cost Recovery (LFCR) plan that allows the company to attain greater amounts of fixed cost recovery as it meets its Commission-defined energy efficiency goals. Under the LFCR mechanism, in the first year, UNS was allowed to recover for residential and small commercial customers 100% of anticipated 2012 lost base revenues assuming it achieved 100% of its 2011 energy efficiency savings. The amount is to be trued-up to actual lost base revenue in the 2013 reconciliation process. If the company does not meet 100% of its 2012 energy savings goals, the difference between the 100% it was permitted to collect and the actual lost revenues would be refunded to ratepayers during the 2013 reconciliation process. If UNS does not meet its 2012 savings goals, it would only be allowed to recover the percentage of actual 2012 savings in the next year. Residential customers are permitted to opt out of the LFCR provisions if they agree to a rate structure that incorporates a higher basic service (fixed monthly) charge. The LCFR is capped at an annual 1% of revenues, with any excess being deferred with interest to be recovered through a future annual adjustment. On December 13, 2011, the ACC approved a full revenue decoupling mechanism for Southwest Gas as part of the utility's rate case. Southwest gas also operates under a weather normalization adjustment mechanism.