Arizona ratepayers are overpaying by up to four times more than they should for unreliable energy due to renewable energy mandates — and stand to pay even more in the future — according to congressional testimony by Nick Myers, commissioner for the Arizona Corporation Commission (ACC).
Myers testified to the House Energy and Commerce Subcommittee last week that the whole renewable energy mandate movement not only constitutes bad policy, but defies common sense.
“Our ratepayers are paying three times for the same generation and retiring reliable generation in favor of unreliable generation is just bad. It’s common sense: you have to have a backup plan,” said Myers. “You have to create more dispatchable generation that sits there idle so that you can use it when the sun goes down or the wind doesn’t blow: we don’t have a whole lot of wind in Arizona, but you have to have that generation available to come online when it happens.”
Myers said that most of ACC’s current challenges stem from a lack of adequate infrastructure to replace the “early forced retirement” of coal plants. He said that ratepayers are having to pay three to four times more than they should because of this dilemma.
“Personally, it pains me to have to prove accelerated cost recovery for early shutdown of coal plants while at the same time authorizing recovery on new purchase power agreements and then because the utilities are ultimately responsible for keeping the lights on, we also have to approve the building of reliable dispatchable generation in the form of natural gas,” said Myers. “That means our ratepayers are paying three times for the same energy generation that could be had by simply keeping our existing generation online until natural retirement or even better beyond that.”
Additionally, Myers said that ratepayers pay four times more than they should for energy due to renewable energy mandates forcing utility providers to invest in “premature technology” under long-term contracts. Myers said that the cost burden is projected to worsen over the next two decades as the price of solar energy drops. The commissioner disclosed that additional problems concerned delayed development and commercialization of newer technologies, namely small modular reactors.
According to Myers, ACC has approved nearly 2,000 megawatts of solar plus battery connections and hundreds of megawatts of thermal generation in the past year.
Myers further noted that a “one size fits all” approach to regulation was impossible due to Arizona’s diverse topography and climate, citing the disparities between the northern and southern parts of the state.
The commissioner also clarified that Arizona lacks the infrastructure to supply natural gas and that the state can’t allocate much more to turbines for intermittent renewable resources.
Instead, Myers said that they have turned to alternative solutions, such as hydroponic basins — an initiative that he says won’t come to fruition in the next decade — as well as salt caverns for natural gas and possibly hydrogen storage. That latter proposal, he said, may provide buffering for the entire west coast and parts of Mexico.
Another solution in the works concerns an increase in the number and size of pipelines laid from Texas to California.
Myers said that ACC has been active in Day-Ahead Markets (DAMs), which matches energy buyers and sellers, a tool they view as a possible stepping stone for a Regional Transmission Organization (RTO). He said that DAM simulations have yielded net savings for utility customers, with or without the inclusion of Washington and California.
“While Arizona has many transmission lines in development, it is important to work with our neighbors to determine what is best in regard to long-term transmission suitable for our region,” said Myers.
When asked whether it was an ideal solution to have California govern the grid for western states, Myers said no. He cited California’s inability to secure power for its own residents and its legislative primacy clauses prioritizing its own interests above that of other states.
“Should we have a problem, California will only make a change if it benefits California, and that is a huge problem for us,” said Myers. “Just look at how much of a bang-up job they’ve done at keeping their own lights on.”
Rep. Debbie Lesko (R-AZ-08), who sits on the subcommittee, commended ACC for rolling back renewable energy mandates earlier this month. Lesko said that the retraction was a “reasonable approach” that she felt attracted more businesses to the state, in contrast with the steady bleed of businesses from neighboring California.
Lesko asked about the reliability and potential problems posed by carbon capture technology and storage outlined by the EPA proposal to reduce carbon emissions by 90 percent by 2030. Myers agreed that the technologies were purely “aspirational” and a threat to reliability. He, along with other state public utility commissioners testifying that day, expressed a desire for the EPA to take back their proposal.
“Those technologies are so much in their infancy that they are extremely expensive, the timeline is extremely rushed, and there is absolutely no infrastructure in place to handle either one of those technologies,” said Myers. “It would absolutely increase costs dramatically to Arizona utilities if we had to do that; it might also accelerate the closure of certain plants because of these requirements.”
As an example of the high cost to ratepayers, Myers explained that hydrogen would have to be converted to ammonia en route since it can’t be piped in long distances.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
Arizona Independent Redistricting Commission (AIRC) will meet Tuesday, Aug. 31 to discuss public comments it heard over the last several weeks as the commissioners prepare to redraw the boundaries of Arizona’s 30 legislative districts and 9 congressional districts as required by law.
The five-member AIRC was formed in January with Democrats Shereen Lerner and Derrick Watchman, Republicans David Mehl and Douglas York, along with Erika Neuberg, an Independent, serving as chairwoman. The commission began its string of 15 hearings last month in an effort to hear citizens’ concerns and suggestions as AIRC prepares to map out Arizona’s 30 redesigned legislative districts (LD) and 9 congressional districts (CD).
The redistricting process requires boundaries to be redrawn under a plan that keeps districts at nearly equal population as required by the U.S. and Arizona Constitutions. It is based on population data garnered by the decennial U.S. Census.
Currently, each LD in Arizona represents about 213,000 people based on a 2010 Census population of nearly 6.4 million, while each CD serves about 710,000 people, give or take a few percent points. The AIRC must now start refresh to draw new boundaries for all the districts based on Arizona’s 2020 Census population of 7,158,923.
In developing those boundaries, the commissioners are required to consider six factors: equal population; compactness and contiguousness; compliance with the U.S. Constitution and the Voting Rights Act; respect for communities of interest; incorporation of geographic features such as city, town and county boundaries; and creation of competitive districts where there is no significant detriment to other goals.
It is the respect for communities of interest and creation of competitive districts which prompted the most public comments during the AIRC’s recent hearings. One of the concerns stems from the decision of the last redistricting commission to split some counties into multiple legislative districts, such as Pinal County which was carved up as part of six LDs.
There are also concerns with the past practice of drawing congressional districts which incorporate disparate and distant communities, as with CD4’s current boundary. That boundary starts in the northwest corner of the state Mohave County, about one hour northeast of Las Vegas. The line then meanders south through Mohave and La Paz counties (minus a few hundred square miles in CD5) down to the northern part of Yuma County.
CD4 also encompasses much of central Arizona, including most of Yavapai County, and it even skirts most of the Maricopa County metropolitan area so it can incorporate parts of Gila and Pinal counties.
Meanwhile, CD1 covers all of four counties (Apache, Graham, Greenlee, and Navajo), most of Coconino County, and parts of Gila, Maricopa, Mohave, Pinal, and Yavapai counties. By comparison, CD2 currently consists of Cochise County in the state’s southeast corner along with eastern Pima County.
At Tuesday’s virtual meeting, the AIRC is also expected to receive updates from mapping consultants and discuss an outreach strategy plan, as well as schedule additional public comment sessions. Among those closely following Arizona’s redistricting efforts is Fair Maps Arizona, founded in 2019 by current Republican gubernatorial candidate Steve Gaynor.
Fair Maps Arizona is providing outreach efforts to help residents better understand legislative and congressional redistricting, and to encourage public comments.
U.S. Rep. Ruben Gallego (D-AZ) is also closely tracking Arizona’s redistricting process. Gallego leads the Congressional Hispanic Caucus, whose political action committee announced earlier this month it plans to spend hundreds of thousands of dollars in three southwestern states, including Arizona.
The PAC is expected to team up with grassroots organization to ensure the concerns of Latinos are taken into consideration by the redistricting committees in Arizona, Colorado, and New Mexico.
“Redistricting will dictate how Latino communities are represented in the halls of Congress for the next decade,” Gallego said at the time of the announcement.
Justin Olson says news reports that he is against getting Arizona’s electric utilities to a carbon-free or net-zero carbon level are incorrect. He whole-heartedly supports that goal, Olson insists, but believes it is more important to ensure Arizonans who pay for that electricity do not end up paying higher rates to reach the goal.
Olson is one of five members of the Arizona Corporation Commission, and one of three Republicans. He was joined last Wednesday by the ACC’s two Democrats in voting down a rules package which urged all electric utilities to a net-zero carbon level by 2050, but not mandate the goal.
The vote came nearly six months after the ACC -with a slightly different contingent of commissioners- voted 4 to 1 on a draft set of rules that included the net-zero by 2050 mandate. It had taken ACC staff and industry representatives about three years to get those rules worked out.
Olson cast the lone nay in that November vote. And he then voted nay last week even after he introduced an amendment to make the whole thing more palatable by switching the mandates to guidelines.
In the end, Olson says he could not get language into the rules to prevent utilities from using the mandates -or guidelines- as a justification for a rate increase to pay for something the company intended to do anyway. And that left customers at risk of paying more.
Olson insists that complaints directed toward any commissioners for “wasting” the time of ACC and industry staff are misplaced.
“The utilities would have undertaken all of that review and study anyway,” as part of determining their own future business plans, Olson told AZ Free News.
In fact, Arizona Public Service (APS) released an Integrated Resource Plan update for shareholders in February which listed its clean energy commitment for 100 percent “clean, carbon-free electricity” by 2050. Olson noted that the company’s plan was made without any regulatory mandate in place.
Olson also pointed out the “overwhelming” voter rejection of Proposition 127 in 2018 which sought to amend the Arizona Constitution to require nongovernmental electric utilities to increase the portion of their retail energy sales from certain types of renewable energy resources to 50 percent by 2030.
Refusing to support any type of renewable energy mandate without protecting ratepayers was simply “respecting the will of the voters,” says Olson. And that, he believes, means the ACC should be working to ensure ratepayers are charged lower rates in the future if utility companies benefit from lower costs by their own business decisions to use more renewable sources.
Some opponents of Olson’s position worry the Biden Administration will push Congress to pass legislation which may set net-zero mandates that do not serve the interest of Arizona’s utilities or its electricity users.
Olson says he understand that concern, but to preemptively enact “a bad policy” would be irresponsible given “there is no harm or penalty to Arizona the utilities, or the ratepayers at this time.”
Arizona House Republicans are calling on Gov. Katie Hobbs to pursue a federal data-sharing agreement intended to help investigators identify Medicaid and other public-benefit fraud by finding connections between government benefit payments and complex business records.
House Majority Leader Michael Carbone (R-LD25) and House Health and Human Services Committee Chairman Selina Bliss (R-LD1) issued the request Monday following the Justice Department’s announcement of new cooperation agreements with several southeastern states.
✅House Republicans Call on Governor Hobbs to Join Federal Anti-Fraud Data-Sharing Partnership Six states have already agreed to help federal investigators uncover fraud
“Arizona families work hard and pay their taxes, and they have every right to expect that not one dollar of… pic.twitter.com/y0L8vKPchx
— Arizona House Republicans (@AZHouseGOP) August 3, 2026
The Justice Department’s National Fraud Enforcement Division announced the agreements July 30 as part of a wider federal-state initiative involving Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, and South Carolina.
Secretaries of state from Alabama, Florida, Georgia, Louisiana, Mississippi, and South Carolina entered data-sharing agreements giving the division access to publicly available corporate-registration and public-benefit payment information held by their agencies. State treasurers from Florida, Mississippi, and South Carolina also joined the agreements.
Federal investigators plan to use the data to identify patterns connecting business entities with public-benefit payments and trace financial activity through shell companies, layered business structures, and related entities. The department encouraged other states to pursue similar partnerships.
“Arizona families work hard and pay their taxes, and they have every right to expect that not one dollar of their money ends up in the pocket of a fraudster,” Carbone said. “Six states have already signed up to help catch the criminals stealing from taxpayers and from the people these programs are supposed to serve. There is no good reason Arizona should not be next, and no good reason for Governor Hobbs to wait.”
“Arizona’s most vulnerable families should not pay the price for fraud and inaction,” he added. “Arizona taxpayers have already lost billions of dollars, and the Justice Department has given states a practical way to identify suspicious payments and business connections earlier. Governor Hobbs should begin the process today.”
Carbone proposed that Arizona begin with a two- or three-year memorandum of understanding that would preserve state control over the information and allow officials to evaluate the partnership’s results.
“Every dollar siphoned off by fraudsters is a dollar that does not reach an Arizona family who needs it,” Bliss said. “We have seen billions lost to sober living scams and phantom behavioral health clinics right here in our state, and Arizona has been named one of the riskiest states in the country for this kind of abuse.”
The Republican lawmakers did not specify which Arizona agencies would enter the agreement or which categories of public-benefit information would be shared.
Unlike the participating states, Arizona’s Secretary of State’s Office does not register corporations or limited liability companies. Those records are maintained by the independently elected Arizona Corporation Commission, while public-benefit payment information is held by executive agencies including AHCCCS and the Department of Economic Security.
The request comes as Hobbs remains under investigation over allegations involving Sunshine Residential Homes, a Department of Child Safety (DCS) contractor. Sunshine donated $300,000 to the Arizona Democratic Party and $100,000 to Hobbs’ inaugural fund before DCS approved a 30% rate increase, though no other group homes received rate increases and over a dozen contracts were terminated.
Attorney General Kris Mayes’ office has sought an interview with Hobbs as part of its ongoing criminal investigation, while the Arizona House has retained outside counsel to conduct a separate inquiry. Hobbs has denied wrongdoing and maintained that she did not influence the contracting decision. As of July 30, no date had been set for her interview with investigators. KJZZ reported that Mayes expects to make an announcement regarding the investigation before the November 3 election.
The Justice Department established a West Coast Health Care Fraud Strike Force in April covering Arizona, Nevada, and the Northern District of California. U.S. Attorney Timothy Courchaine said federal investigators and prosecutors had disrupted fraud schemes representing more than $1 billion in Arizona alone.
In announcing the strike force, the Justice Department cited the prosecution of two wound-graft company owners in a $1.2 billion Medicare and Medicaid fraud scheme and the indictment of Farrukh Jarar Ali, a Pakistani national accused of directing an approximately $650 million fraud operation involving at least 41 Arizona substance-abuse treatment clinics.
Federal prosecutors allege Ali’s company helped enroll clinics as providers with AHCCCS before submitting approximately $650 million in fraudulent claims for services that were unnecessary, substandard, or never provided. AHCCCS paid approximately $564 million on the claims, according to the Justice Department.
Hobbs’ administration has separately promoted Arizona’s existing efforts to prevent Medicaid fraud. In May, the governor’s office said the state’s enforcement campaign had targeted as much as $2.5 billion in suspected fraud, produced more than 364 payment suspensions based on credible allegations, and contributed to more than 100 indictments. AHCCCS also began deploying the Alivia 360 analytics platform this summer to identify potential improper claims before payment.
Carbone said the federal agreement could add another investigative tool by allowing authorities to identify suspicious connections between public payments and corporate records earlier.
“Arizona has already paid an enormous price for fraud,” Carbone said. “Governor Hobbs can act now to help prevent the next scandal. If she chooses to leave Arizona on the sidelines, she should explain why.”
Arizonans can now access records of mutual fund notice filings online.
The Arizona Corporation Commission (ACC) announced that the state began accepting mutual fund notice filings electronically on Monday.
The filings are available on the Electronic Filing Depository (EFD), an application system maintained by the North American Securities Administrators Association (NASAA).
The ACC’s Securities Division oversees mutual fund notice filings. Division Director Mark Dinell said in a statement that enabling EFD usage improved efficiency for investor regulation.
“The Securities Division is committed to providing efficient, modern regulatory services that facilitate lawful capital formation while maintaining Arizona’s strong investor protection standards,” said Dinell. “Arizona’s participation in the NASAA EFD offers issuers and their representatives an additional electronic filing option that streamlines the submission process, improves administrative efficiency, and supports timely access to Arizona’s capital markets without compromising the division’s regulatory oversight responsibilities.”
The EFD also has the capability of maintaining the electronic submissions of other notice filings to include Rule 506 offerings, unit investment trusts, and franchise registrations, though Arizona only allows for several filing types.
Going forward, the EFD will allow both the ACC and authorized filers to reduce paper submissions and administrative processing for mutual fund notice filings.
In addition to the ability to submit those filings electronically, authorized filers may pay applicable Arizona filing fees online, manage filings and renewals through a centralized portal, review filing status and history, and receive electronic confirmation of submitted filings.
The EFD also enables Arizonans to search and view filings submitted using the system, at no cost to the public.
Arizona is one of 22 states and territories that allow electronic filing through EFD for mutual fund notices: Alaska, Delaware, Georgia, Idaho, Kentucky, Louisiana, Massachusetts, Minnesota, Montana, New Jersey, North Dakota, Ohio, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, and Wisconsin.
Kentucky also joined the EFD for mutual funds filings on Monday.
All other states, as well as the District of Columbia and the Virgin Islands, are in the process of allowing that kind of electronic filing through EFD.
Arizona began accepting EFD submissions of initial and amendment filings for Regulation D, Rule 506 offerings in 2023. The ACC still accepts paper filings for those as well.
Arizona does not allow electronic submissions through the EFD for notices of unit investment trusts or other filings through the universal filing type.
Also on Monday, the ACC issued its annual report for the 2025-26 fiscal year. ACC Chair Nick Myers said highlights of the fiscal year aligned with the commissioners’ commitment to safety, reliability, and affordability when it comes to utilities, entrepreneurship, and investing.
“The commission has continued strengthening Arizona’s grid, championing regulatory stability and efficiency, and eliminating subsidies and cost shifts,” stated Myers.
Highlights included grid stability proven by the lack of rolling blackouts and major power outages, nearly 8,000 megawatts of new electricity generation, electricity prices below the national average marked by a 1.2% decrease compared to a 7% national increase, a new online business filing portal called the Arizona Business Center, and more than $76 million in revenue contributed to the state’s general fund.
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