by Matthew Holloway | Dec 7, 2025 | News
By Matthew Holloway |
The Arizona Corporation Commission (ACC) voted 4-1 on Wednesday to approve a legally binding 10-year Energy Supply Agreement (ESA) between Tucson Electric Power (TEP) and Humphrey’s Peak Power LLC to power a planned data center campus proposed for Pima County.
The Commission underscored that its review of the agreement was limited solely to ensuring statutory compliance and safeguarding ratepayers’ interests. Regulators noted they do not hold jurisdiction over the nature or approval of the associated data center project itself, only the energy contract enabling its power supply.
As reported by the Arizona Capitol Times, the ACC meeting on December 3rd was contentious, with almost two dozen members of the public calling on the Commissioners to vote against the agreement in over three hours of discussion. Commissioner Rachel Walden was the only dissenting vote.
“I’m still wary about whether or not there is a data center at the end of this,” Walden said, according to the Times.
TEP, a regulated public utility, is legally obligated to serve all eligible customers within its designated service territory without discrimination and may not refuse service to applicants who meet interconnection and regulatory requirements, the ACC explained in a press release. Commissioners reiterated that ESA terms must provide protections not only for the contracting parties but also for the broader TEP ratepayer base.
During the meeting, TEP executives said that the data center customer will ultimately decrease other customers’ rates, arguing the facility will make a larger revenue contribution than the actual cost of serving it, according to the Times.
Erik Bakken, senior vice president and chief administrative officer at TEP, explained, “We believe that we’ve got the gold standard special contract for a data center with existing resources and existing capacity that’s available.”
In a press release, TEP said its usage-based rates are set by dividing the total revenue the utility is allowed to collect by projected energy sales. Bringing in a large new user like a data center increases overall sales, the company argued, which allows per-kilowatt-hour charges for other customers to move lower than they otherwise would be.
In comments to 13 News, Pima County Supervisor Matt Heinz told the outlet that Amazon Web Services (AWS) will no longer be the end user for the data center referred to as “Project Blue,” citing multiple sources. He stated that there are now as many as seven or eight different potential end users. The outlet reported Tuesday that Facebook’s parent company, Meta, could potentially be the new suitor for Beale Infrastructure’s project based on comments from Heinz and Tucson City Councilman Paul Cunningham.
Arizona Capitol Times reported that this shift was owed to the project switching from water-cooling to air-cooling. Beale Infrastructure, the project developer, reportedly told commissioners that it is confident an end user will be found in time for the data center’s projected completion in 2027.
The data centers’ proposed 290-acre campus in Pima County, per Beale’s ESA application obtained by AZ Luminaria, has sparked a massive public debate in southern Arizona, including questions about grid load growth, long-term power procurement, water use before Beale’s conversion to air-cooling, and whether infrastructure planning is keeping pace with rapid expansion in energy-intensive industries.
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.
by Matthew Holloway | Sep 21, 2025 | News
By Matthew Holloway |
In a key vote on Wednesday, the Arizona Corporation Commission, led by Commissioner Rachel Walden, unanimously repealed the state’s Energy Efficiency (EE) and Demand Side Management (DSM) Rules. The regulations, now 15 years old, have been expired since 2020, and according to the board, have cost Arizona ratepayers more than $1 billion in additional surcharges since inception.
Both APS and TEP have exceeded the requirements, the board noted, with Commissioner Márquez Peterson explaining, “The current standard required the accumulated savings of 22% of retail sales by 2020. We’ve had(sic) reconfirmed that as of 2024, APS is at 26.2% and TEP is currently at 28.52%. Both utilities have exceeded the standard which is out of date.”
“I cast my vote to repeal the rules because the rules were not based on any cost-effectiveness tests, nor did they contain any other ratepayer protection requirements. The mandates instead passed all program costs in support of the few on the backs of all ratepayers, especially onto those who can least afford it—our low- and fixed-income ratepayers, and our hardworking Arizona families,” Commissioner Walden said in a statement Thursday.
“I fully support the use of EE mechanisms and DSM programs, which have demonstrated energy savings, especially during peak summer heating days when our energy needs have stressed the electrical grid. What I do not support is the cost shifts and economic burdens these mandated programs have created, costing ratepayers in excess of $1.1 billion.”
Commissioner René Lopez noted during the meeting that the rules “were written over a decade ago.” He added, “We’ve had a lot of changes in technology, and a lot of changes in demand are coming, It served its purpose, everyone has met the requirements, now it’s time for them to go away.”
The commission explained that the repeal of the rules does not eliminate the EE/DSM program; instead, Arizona utilities will now be required to use All-Source Requests for Proposals when they create plans to address forecasted energy demands, with EE and DSM programs continuing as two categories of solutions that can be proposed for the utility’s consideration.
“I urge technology stakeholders to continue to propose these types of solutions to offset utility generation needs,” Walden added. “The solutions must be cost-effective, and the Commission will continue to evaluate these programs on a case-by-case basis during rate cases. I recently offered an amendment to approve a Bring Your Own Device DSM program for APS customers that did not create a cost shift, and that amendment was adopted by majority vote by this Commission.”
Commissioner Márquez Peterson added in a statement, “As a Commissioner, I will continue to communicate to utilities my support for effective EE programs in future rate cases. These programs can save ratepayers on their electricity bills and help us ensure we have reliable energy during peak times of the day.”
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.
by Matthew Holloway | Jun 18, 2025 | News
By Matthew Holloway |
Arizona Corporation Commissioners Nick Myers and Kevin Thompson responded to reports of an upcoming primary challenge from State Representative Dr. Ralph Heap and running mate Rep. David Marshall with a surprising attack against both candidates and two of the most prominent conservative organizations in the state. After Heap confirmed his 2026 candidacy for the Commission in a call with the Arizona Republic, incumbents Thompson and Myers reportedly blasted Heap and Marshall as “special interest proxies who have been recruited to return politics into ratemaking.”
Myers would even go as far as to claim that the two GOP challengers are in the service of the Arizona Free Enterprise Club (AZFEC) and Turning Point USA (TPUSA), telling the Republic that both want “good puppets” on the Corporation Commission.
Responding to the remarks, Arizona Free Enterprise Club President Scot Mussi told the Republic that Myers and Thompason were “pretty on brand,” and added, “They always resort to attacks and attacking whoever they can to avoid having to address the substance of what’s being brought to them.”
Turning Point Action spokesman Andrew Kolvet told the outlet, “We have no idea what the commissioner means by ‘puppet,’ as we have had zero contact with any current commissioners since they have taken office.” He stated that TPUSA considers AZFEC to be “an ally.”
Although the Corporation Commission came fully under Republican control in January, the stakes for Arizona voters are high given that APS has requested yet another rate increase on top of the 8% increase it was given in 2024.
Commissioners Thompson and Myers have also drawn the ire of many Republicans by echoing the talking points of APS and Tucson Electric Power (TEP), when both utilities refused to comply with President Trump’s Executive Order to reactivate the Cholla and Springerville coal-fired power plants. As previously reported by AZ Free News, Thompson claimed that doing so would “jeopardize the grid and burden ratepayers with millions of dollars in short-sighted costs.” He also criticized the President’s intervention saying, “The Commission must hold utilities accountable and ensure that we have reliable and dispatchable generation to meet the load demands of the future. We also have to make sure we accomplish that goal in a manner that doesn’t jeopardize the grid and burden ratepayers with millions of dollars in short-sighted costs that fail to meaningfully address our long-term energy needs.”
He added, “Managing highly intricate systems like our electrical grid is far more complicated than a slogan on a bumper sticker. Continued calls from certain elected officials to reopen Cholla does nothing more than promote financially reckless solutions.”
The Commission’s refusal to follow the Trump administration’s energy agenda and pushback toward efforts to eliminate environmental, social, and governance (ESG) and Diversity, Equity, and Inclusion (DEI) policies has placed it at odds with the Republican-controlled state legislature—along with the Arizona Freedom Caucus, AZFEC, and the Goldwater Institute.
Speaking to reporters, Myers accused AZFEC and TPUSA of “making things up,” claiming, “They’ve basically been trying to run us through the mud for every little thing they can drum up.”
However, Mussi explained that the Free Enterprise Club has had “a multitude of issues,” with the Commission. “There’s been a multitude of issues that they have shown no interest in working on,” he said. “And when these issues are brought up, rather than engaging on them, they have usually gone and attacked not just us, but whoever is bringing the policies that they disagree with addressing.” In particular he pointed to APS and TEP’s integrated resource plans, which lean heavily on wind and solar generation as opposed to coal, natural gas and nuclear, and AZFEC’s drive to terminate “California-style, Green New Deal policies.”
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.
by Staff Reporter | May 3, 2025 | News
By Staff Reporter |
A commissioner with the Arizona Corporation Commission (ACC), Nick Myers, denies a power company is to blame for a woman’s death.
82-year-old Kate Korman died last May less than a week after the Arizona Public Service (APS) shut off her power for failure to pay. Per APS, Korman ceased paying in January and owed around $500.
The medical examiner’s report attributed Korman’s cause of death as chronic alcohol use with heart disease listed as a contributing factor and declared the manner of her death to be an accident caused in part by exposure to elevated temperatures.
ACC prohibits power shut offs based on a certain timeline — June 1 through October 15 — not based on temperatures. APS does offer a program allowing family members to oversee their loved one’s bills.
Myers opposed modifying policy to implement temperature-based shutoff restrictions. The commissioner also said the current shutoff restrictions have caused more problems than it aimed to solve.
“We are already at a point where the policies we have in place are causing massive debt within our lower income communities (an unintended consequence of those policies) and therefore I believe, and am attempting to verify, that the mental stress is actually CAUSING more deaths than they are saving (by way of suicides increasing). Furthermore, much of that debt, millions of dollars of it actually, are ultimately being transferred back to the rest of the customers, increasing bills, which is actually exacerbating the underlying problem of people not being able to pay their bills,” said Myers. “In a nutshell, at some point people (and their families, and possibly their communities, like churches) should be responsible, it shouldn’t all fall on utilities and the ratepayers of utilities. It’s ultimately an unsustainable catch-22, and we are possibly seeing that we are at that cusp right now.”
Myers defended APS in response to criticisms made by Jonathan and Adam Korman, the sons of the deceased woman. Korman maintains his mother died due to temperatures inside her home, and that APS bears responsibility for shutting off her power.
Myers asserted there existed no further remedies to mitigate heat exposure due to shutoffs. Myers indicated there were further details about the elder Korman’s death that would have cast her in a negative light.
“Alcoholism killed your mother, heat may have been a contributing factor, but the utility did go above and beyond what we require. There really are no more practical methods that can be implemented at this point,” said Myers. “We did address it and trust me, I’m sure the family doesn’t want made public what we found. This is another case where the utility did above and beyond what they needed to, and more importantly the shutting off of power for non-payment was NOT the cause of death.”
Myers also said the elder Korman’s children bore some of the responsibility for her death, since they were not keeping an eye on her.
“So you are really going to come after us, who have no control over the situation, when you failed to protect your own mother, even though there were multiple tools in place for you to use for that exact purpose?” said Myers. “I’m not just blaming your mom, I’m more blaming you for not looking out for your elderly mom. I refuse to tell utilities that they have to provide power to people that do not pay their bills. To be honest, I’m not even happy about many of the programs that they have in place to help, but I understand the need for them. The only problem is the customer, and their family, have to actually reach out to take advantage of those programs. Again, I am sorry for your loss, but you have to take responsibility here. This is not a problem that the rest of society should shoulder.”
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by Matthew Holloway | Apr 27, 2025 | News
By Matthew Holloway |
During the Arizona Corporation Commission’s annual Summer Preparedness Workshop, Chair Kevin Thompson and Vice Chair Nick Myers essentially echoed the talking points of Arizona Public Service Company (APS) and Tucson Electric Power (TEP). Both utility companies implicitly refused to reactivate the Cholla and Springerville Coal-Fired Power Plants in defiance of President Trump’s Executive Order earlier this month. Thompson claimed doing so would “jeopardize the grid and burden ratepayers with millions of dollars in short-sighted costs.”
In early April, President Donald Trump issued an Executive Order (EO) using emergency authority to keep APS’ Cholla Power Plant in operation. In a statement issued with the EO, Trump said, “I am instructing Secretary Wright to save the Cholla coal plant in Arizona, which has been slated for destruction. We’re going to keep those coal miners on the job. We’re going to have that plant opening and burning beautiful, clean coal in a very short period of time.”
According to an emailed release from the ACC, the APS representative at the workshop “stated that the process that culminated in closing the plant began ten years ago because of new regulations from the U.S. Environmental Protection Agency (EPA) making the operation of the plant uneconomic for their customers.” The utility added, per the ACC that “because of the ongoing EPA regulations requiring new equipment for pollution control and significant deferred capital and maintenance investments that would have to be made, the re-opening and continued operation of the Cholla plant would come at a significantly high cost for customers.”
APS reiterated that it intends to preserve the infrastructure of the power plant and offered that it could be used as a potential site for nuclear or natural gas power later, implicitly refusing to bring the coal-fired plant back online.
Similarly, TEP confirmed that it still intends to move forward with the scheduled retirement of Units 1 and 2 at the coal-fired Springerville Generating Station after the summer of 2027 and after the summer of 2032. The utility is also exploring the possibility of repurposing the power station for an alternative fuel source.
Vice Chair Myers commented, “We’re all aware of the detrimental loss of electric capacity with the closure of Arizona coal plants, and in part because of ongoing EPA regulations. It is a day late and a dollar short when it comes to re-opening the Cholla plant. Trying to re-open Cholla at this point would result in significantly higher rates for customers,” repeating the APS talking point.
He added, “The utilities have already been planning for this retirement and replacement costs are already being born by the utility customers. Re-opening Cholla would also require significant capital and maintenance investments that have been deferred. Further, the EPA requirements that made the continued operation of Cholla not cost-effective are still in effect. The damage has already been done. Arizona utilities are prepared for that and already planning to repurpose those plants for future generation, such as nuclear or natural gas-fired power.”
“Bringing the Cholla plant into compliance with Obama era EPA requirements will require the installation of costly scrubbers on the coal-fired units that would cost ratepayers hundreds of millions of dollars,” said Chair Kevin Thompson.
Thompson added a subtle critique of the President’s movement to reactivate the Cholla Generating Station saying, “The Commission must hold utilities accountable and ensure that we have reliable and dispatchable generation to meet the load demands of the future. We also have to make sure we accomplish that goal in a manner that doesn’t jeopardize the grid and burden ratepayers with millions of dollars in short-sighted costs that fail to meaningfully address our long-term energy needs.”
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.
