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.
by Matthew Holloway | Apr 11, 2025 | News
By Matthew Holloway |
Arizona Republican Congressman Eli Crane (R-AZ-02) celebrated President Donald Trump’s Executive Order using emergency authority to keep the Cholla Power Plant in Navajo County in operation.
“While most politicians ignore the will of We the People, President Trump takes decisive action. By saving the Cholla Power Plant from imminent closure, hardworking Arizonans will maintain their jobs and livelihoods,” Rep. Crane said in a statement. “For years, radical environmentalists tried to destroy the once thriving coal industry. Under President Trump’s leadership, those days are officially over. This is a huge win for Navajo County, and I applaud the President and his team for delivering.”
In a statement signing the Executive order 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.”
The text of the Executive order stated, “America’s coal resources are vast, with a current estimated value in the trillions of dollars and are more than capable of substantially contributing to American energy independence, with excess to export to support allies and our economic competitiveness.”
“Our nation’s beautiful clean coal resources will be critical to meeting the rise in electricity demand due to the resurgence of domestic manufacturing and the construction of artificial intelligence data-processing centers.”
The move by Trump was also praised by Navajo Nation President Buu Nygren who shared a lengthy statement to X, saying in part, “Today marks a pivotal moment for energy policy in the United States. As President Trump signs an executive order aimed at revitalizing the coal industry, I want to emphasize the importance of including tribal nations like the Navajo Nation in this national conversation.”
Nygren added, “The harmful policies of the past have unfairly targeted coal, but those tides are turning. Last year, the U.S. produced over 1 billion tons of coal, and even now, we are producing more than 500 million tons annually. If the federal government is serious about increasing domestic energy production, enhancing permitting, and bolstering energy security, it must work in partnership with tribal nations. Together, we can strengthen local economies, generate revenue, and create good-paying jobs in historically underinvested areas like ours. For the Navajo Nation, coal is more than an export—it has powered our homes and our economy since the mid-20th century. Our people have depended on the royalties, wages, and tax revenues from this industry for generations. Coal has also remained a primary heating source for many Diné families.”
Speaking with AZCentral, APS, which owns the Cholla Power Plant stated, “APS stopped generating electricity at Cholla last month, in accordance with federal regulations and due to increasing costs that have made the plant uneconomical to operate.”
The utility said, “We plan to preserve the site for potential future-generation uses, including the possibility of nuclear power. At this time, APS has already procured reliable and cost-effective generation that will replace the energy previously generated by Cholla Power Plant.“
The contradictory statement leaves questions around whether the plant will resume operation in the immediate future.
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 AZ Free Enterprise Club | Mar 7, 2025 | Opinion
By the Arizona Free Enterprise Club |
From the Paris Climate Accords, to the Green New Deal (in the so-called “Inflation Reduction Act,”) the global “Net Zero” agenda has been steaming ahead at full speed. And it hasn’t been just in the form of government mandates. Across the world, electric utilities have been making their own Net Zero Commitments – whether it is in response to government regulations against fossil fuels, or subsidies from the government for unreliable power, explicit mandates, or from the influence of investors like Blackrock. No, it’s not just in Germany, and it isn’t just in California, either. The Net Zero agenda, unfortunately, is alive and well here in Arizona too.
We always knew it would be costly, and experience has proven that true. But now, in a newly released report published by the Arizona Free Enterprise Club and the AZ Liberty Network, the cost for Arizona’s largest utility to go “Net Zero” was found to be even more expensive than expected coming with a massive price tag of at least $42.7 billion by 2038.
History of the Green New Deal in Arizona
The “green” agenda is not new to Arizona. In 2006, then Chairman of the Corporation Commission Kris Mayes pushed through the first mandates in Arizona, requiring our utilities to get 15% of their energy generation from “renewables” by 2025. Those rules alone have already cost ratepayers $2.3 billion. In 2018, an out-of-state billionaire funded a proposition on the ballot that would have required utilities to obtain 50% renewable generation by 2035. That measure went down in flames, being rejected by a 2-1 vote.
Then in 2020, the Arizona Corporation Commission began pursuing another mandate – this time to require 100% renewable energy by 2050, also known as going “Net Zero” by 2050. The mandates almost passed without the Commission ever conducting an analysis to find out what it would cost ratepayers. Once an analysis was finally done, it was projected that the mandates would cost ratepayers $6 billion, leading to the proposal being rejected by the Commission.
But then, Arizona’s utilities, who opposed the 2018 initiative, announced publicly that they were voluntarily going “Net Zero” – mandate or no mandate. Or, for APS, Net Zero doesn’t even go far enough, and they have pledged to be 100% “carbon free” by 2050.
And these aren’t just public statements. The utilities have committed to going “Net Zero” in SEC filings to their shareholders, and they even compensate their top executives (page 68) based on how much “clean” energy they build in our state. Unsurprisingly, these commitments completely shape their resource plans…
>>> CONTINUE READING >>>
by Daniel Stefanski | Dec 2, 2024 | Economy, News
By Daniel Stefanski |
Arizona utilities providers recently revealed plans to partner with an emerging energy market.
Earlier this week, representatives from Arizona Public Service (APS), Salt River Project (SRP), Tucson Electric Power (TEP), and UniSource Energy Services made news by announcing that their utility companies would be joining Southwest Power Pool’s (SPP) Markets+. The partnership would take place starting in 2027 if the fledgling market receives the final green light from the Federal Energy Regulatory Commission (FERC).
According to the release issued by the state energy providers, an energy market “is an interconnected network of electricity providers that help meet the supply and demand of power across a specific geography and include transmission pathways for electricity to travel from one location to another.” For example, “When demand is lower, the Arizona utilities can sell energy, like excess solar power during the winter season, to maintain a balanced electric system, while also taking advantage of cost-savings opportunities.”
The Arizona utilities promise “increased reliability, greater cost savings, [and] more clean energy” for state customers after the partnership would take effect. It is projected that this market would save approximately $100 million from the status quo, which would be, in part, realized by the energy customers of the participating companies.
“Arizona is one of the fastest growing states in the country and we are thoughtfully planning for the future and evolving our operations to continue to provide top-tier service and reliability to our customers at an affordable cost,” said Brian Cole, APS Vice President of Resource Management. “Together with our neighboring utilities, APS plans to join Markets+ to efficiently deliver energy and bolster the resilience of our shared energy grid in Arizona and across the region.”
“SRP’s participation in SPP Markets+ is a key component of our plan to meet the growing energy needs of our customers reliably and affordably and will help us achieve our 2035 Sustainability Goals,” said Josh Robertson, SRP Director of Energy Market Strategy. “We look forward to working with utilities in the region to bring the cost and resilience benefits to our respective customers.”
“Tucson Electric Power and UniSource Energy Services are excited about the value that Markets+ can provide to our customers, including cost savings and greater access to clean energy and other resources that support affordable, reliable service,” said Erik Bakken, TEP Senior Vice President. “We look forward to strengthening an already collaborative, productive relationship with Southwest Power Pool, our reliability coordinator, in its new role as market operator.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Aug 12, 2024 | News
By Daniel Stefanski |
Arizonans are using a lot of energy throughout this hot summer in the Valley of the Sun.
Last week, the Arizona Corporation Commission issued a press release to alert readers that Arizona electric utilities had “set new records for peak energy demand.”
According to the communication from the state government agency, the record for peak energy was reached on Sunday, August 4, between 5-6pm, when the high temperature for that day was 116 degrees Fahrenheit.
Republican Corporation Commissioner Kevin Thompson told AZ Free News, “Our utilities have done an exceptional job of keeping the lights on and air flowing through new record setting peak demand this summer. There’s no coincidence to the fact that despite our extreme heat and load growth, Arizona hasn’t suffered the same crippling energy pitfalls of California. Arizona regulators have focused on an ‘all of the above’ generation approach bolstered with dispatchable baseload to keep our grid reliable and affordable. This Commission has worked relentlessly to do away with energy mandates that cost ratepayers more money and get in the way of what utilities should be primarily focused on: generating electricity.”
“Our utilities continue to deliver reliable power in the face of excessive temperatures and ever-increasing electricity demand. Arizona continues to be ranked in the top ten of states with the most reliable power—a critical statistic for which each of us is thankful during these record-breaking temperatures,” said Chairman Jim O’Connor.
Arizona Public Service (APS) used 8,212 MW on August 4 (compared to 8,162 MW on that date in 2023). Salt River Project used 8,219 MW in 2024 (compared to 8,163 MW in 2023). And TEP / UNS just barely missed out on the record, finishing with 2,917 MW on July 8 (compared to 2,969 MW in 2023). On August 4, TEP’s peak demand reached 2,661 MW.
“Our utilities are facing unprecedented challenges in balancing the needs of our energy demands during this hot summer while ensuring energy reliability at the most affordable rates,” said Commissioner Lea Márquez Peterson. “Their summer preparedness planning for peak demand is vitally important to keeping our families safe and cool in the summer.”
The Commission shared that these utilities have made assurances “that they are prepared to produce a combined total of more than 23,000 megawatts of electricity to meet customers’ daily summer demands.” APS has 1.3 million customers; SRP, 1.1 million customers; and TEP / UNS, 719,000 customers.
At the end of its release, the Commission “encourages Arizonans to be mindful and help reduce electric demand during peak hours. Actions, such as lowering energy use during peak hours and signing up for demand response programs can contribute to reducing overall customer demand and reducing monthly electric bills.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
