By Matthew Holloway |
Republican attorney general nominee and Arizona Senate President Warren Petersen is targeting Democratic incumbent Kris Mayes’ utility-regulation record in a new campaign advertisement, contrasting her votes on the Arizona Corporation Commission with his support for tax reductions in the Legislature.
The ad accuses Mayes of voting to increase utility rates six times and attributes higher gas, water, and electricity costs to her decisions.
“I’m Senate President Warren Petersen. I helped pass one of the largest tax cuts in state history, eliminating tax on tips, rent, and overtime,” Petersen says. “But my opponent voted to raise your utility rates six times.”
Petersen’s campaign also criticized Mayes’ role in establishing renewable energy surcharges during her tenure on the Arizona Corporation Commission. The commission adopted the Renewable Energy Standard and Tariff (REST) rules in November 2006, establishing renewable energy requirements and procedures for utilities to recover program costs through customer surcharges. The rules became effective in August 2007.
Mayes’ office has described her as instrumental in adopting the rules. She has defended the renewable energy standards, arguing that repealing them would threaten electricity affordability and reliability.
The commission reported in March 2026 that APS, Tucson Electric Power, and UNS Electric had collected more than $2.3 billion in REST surcharges from customers. That figure measures collections under the program and does not establish its net economic impact after accounting for benefits or avoided costs.
“While we’ve fought to make life more affordable for hardworking Arizona families, Mayes has supported higher utility rates that squeeze household budgets and punish the very people she was elected to protect,” Petersen said.
Petersen’s tax message references changes enacted at different times. The Arizona Department of Revenue states that cities stopped collecting transaction privilege tax on residential rentals beginning January 1, 2025. The change applies specifically to municipal taxes on residential rentals.
In June 2026, Gov. Katie Hobbs signed the fiscal year 2027 budget after vetoing nearly all bills sent to her desk from April 13 until May 14, including a proposed Republican budget containing over $1 billion in tax relief. The package, spearheaded by Repbulican lawmakers, incorporated full conformity with the tax cuts of the One, Big, Beautiful Bill Act and included $1.4 billion in tax cuts, with relief involving tips and overtime, a higher standard deduction, and an additional deduction for seniors.
The advertisement follows another dispute between the candidates over Mayes’ past statements about utility pricing.
Petersen recently criticized a resurfaced 2009 Arizona PBS interview in which Mayes, then chair of the Corporation Commission, discussed higher water prices as a means of reducing consumption and the energy required to pump water.
The discussion also included Mayes calling for utilities to provide conservation tools and participate in a statewide conversation about resource use. The interview did not identify a particular rate increase she approved.
Petersen’s new release also criticizes Mayes for challenging utility costs as attorney general after supporting increases during her commission service.
Petersen said affordability would remain a priority if he wins the attorney general’s office.
“As Attorney General, I will fight from day one to protect Arizona families, challenge policies that drive up costs, and help restore the financial breathing room Arizonans desperately need and deserve,” he said.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.







