by Jonathan Eberle | Dec 10, 2025 | News
By Jonathan Eberle |
The Arizona Corporation Commission recently approved an amendment from Chair Kevin Thompson that he claims cuts more than half of the Arizona Public Service Company’s proposed budget for demand-side management and energy-efficiency programs—removing roughly $51 million in annual surcharges that would have been passed on to ratepayers.
The vote comes as the Commission continues the process of repealing a 2010 energy-efficiency mandate that has driven more than $1 billion in cumulative surcharges on customer bills over the past 15 years. Those surcharges have funded utility-run programs intended to reduce energy consumption and defer the need for new power generation.
APS’ amended 2025 Demand Side Management (DSM) and Energy Efficiency (EE) plan sought $90.9 million—an increase from the $79.4 million approved in 2022. Commissioners unanimously rejected APS’ proposed funding increases for several existing and new programs. Thompson said the cuts were necessary to rein in programs that had expanded far beyond their original purpose.
“I support energy efficiency and demand side management programs that reduce the need for additional generation and lower the costs for all ratepayers,” Thompson said. “But APS’ annual budget for these programs had become a bloated Christmas tree of incentives and rebates for special interests and customers who should be paying for these upgrades on their own.”
According to Thompson, previous Commissions allowed the DSM/EE program to grow beyond its intended goals, resulting in programs that offered rebates for equipment ranging from horticulture fans and livestock ventilation systems to incentives for electric golf carts, off-road utility vehicles, EV charging stations in multifamily buildings, and advanced power strips. The Commission also ended a long-standing practice of providing incentives to home builders and contractors for installing energy-efficient appliances—upgrades already mandated elsewhere in state law.
APS had also proposed new incentives for builders, including a $1,000 rebate per home for installing ENERGY STAR NextGen-certified systems requiring connected heat pumps, water heaters, and smart thermostats. The company had additionally sought to increase its “EV-ready home” incentive from $100 to $200. All of those proposals were rejected.
With Thompson’s amendment, the budget was cut by more than 50%. The approved spending plan now focuses on what commissioners described as core, ratepayer-benefiting programs. Thompson said the revised plan maintains assistance for vulnerable Arizonans while delivering broad relief to all APS customers through lower surcharges.
“We have accomplished a major course correction,” he said, “one that will save APS ratepayers more than $50 million in annual costs while preserving programs that truly help the most vulnerable members of our society.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
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 AZ Free Enterprise Club | Oct 31, 2025 | Opinion
By the Arizona Free Enterprise Club |
The Green New Scam got its start in Arizona two decades ago when a 5-0 Republican Commission (including then Republican Kris Mayes) adopted the Renewable Energy Standard and Tarriff Rules, or the REST Rules. Among other things, most significantly it ushered in the first “renewable” mandates in our state, forcing utilities to obtain at least 15% of their power from “renewables.” Ratepayers have been paying the costs (over $2 billion) ever since.
The REST Rules had a target date: 2025. Well, it’s now 2025, and the utilities have not only met that mandate, but they have also voluntarily exceeded it. Now our current 5-0 Republican Commission has started the process of repealing them.
Repealing the REST Rules is important, but the targets have already been met, and the price has already been paid. Substantively, the repeal won’t really affect ratepayers all that much. Why? Because mandate or no mandate, our utilities are completely committed to going “Net Zero” by 2050, and so far, they’ve been allowed to do it…
>>> CONTINUE READING >>>
by Jonathan Eberle | Oct 29, 2025 | News
By Jonathan Eberle |
The Arizona Corporation Commission (ACC) announced that the U.S. District Court for the Central District of California has entered a final judgment against Safeguard Metals LLC and its owner, Jeffrey Ikahn, for orchestrating a multimillion-dollar fraud scheme that preyed on elderly and retirement-aged investors across the country.
The ruling orders approximately $25.6 million in restitution to victims and an equal civil monetary penalty, totaling more than $51 million in sanctions. The decision follows a coordinated enforcement effort between the Commodity Futures Trading Commission(CFTC) and 30 state regulators, including Arizona.
According to court findings, Safeguard Metals and Ikahn operated a deceptive precious metals investment scheme between October 2017 and July 2021, soliciting roughly $68 million—primarily from retirement accounts—belonging to at least 450 individuals. The company promised secure investments in silver and other metals but instead misled investors with false information and inflated pricing on the metals sold.
Investigators found that the firm concealed material facts, manipulated sales tactics, and grossly overcharged customers for products that were worth far less than claimed. Much of the money lost came from seniors’ life savings and retirement accounts.
“The court’s final judgment in this matter provides meaningful restitution to investors harmed by this fraudulent action and it reinforces that the Arizona Corporation Commission will take decisive action to protect investors, especially those in vulnerable communities,” said ACC Chair Kevin Thompson. “I want to thank the CFTC and the state regulators for their dedication and hard work.”
Thompson added that the case serves as a reminder of the essential role state regulators play in detecting and halting investment fraud. “This outcome is an important reminder that state securities regulators play a critical role in fighting investment fraud in all forms,” he said.
The U.S. Securities and Exchange Commission (SEC) also pursued a parallel enforcement action in 2022 against Safeguard Metals and Ikahn. Earlier this year, the court ordered the defendants to pay $25.6 million in disgorgement and an equal civil penalty, mirroring the CFTC and state regulators’ ruling. Any funds paid under one judgment will be credited toward the other to prevent duplication.
The sweeping case reflects cooperation among financial regulators from 30 states, including Alabama, Arizona, Arkansas, California, Florida, Illinois, New York, and Texas, as well as the CFTC’s national enforcement network.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Oct 25, 2025 | News
By Jonathan Eberle |
Arizona Public Service (APS) is seeking to raise electricity rates by 14% starting in 2026 — a move the Arizona Free Enterprise Club (AZFEC) argues would unfairly burden Arizona families while subsidizing costly “green energy” initiatives and the early closure of a key coal plant.
According to filings with the Arizona Corporation Commission, APS attributes the proposed rate increase largely to battery storage projects and the early retirement of the Cholla Power Plant. The Arizona Free Enterprise Club filed an official response criticizing APS for attempting to block the organization’s intervention in the case, while allowing environmental groups such as the Sierra Club to participate. “APS has no issue letting radical groups like the Sierra Club into their hearings, but they’re trying to block the one organization fighting for Arizona families,” said AZFEC President Scot Mussi.
Mussi contends APS’s “carbon free” and “carbon neutral” commitments over the past five years have shaped their energy plans — including their Integrated Resource Plans and large-scale renewable energy projects — resulting in higher costs for consumers. “For years, their voluntary commitments have very likely increased costs for Arizona ratepayers,” the organization said in its filing.
Two days after filing its response, the Arizona Free Enterprise Club announced it had been officially granted intervention in the APS case. This designation allows AZFEC to participate directly in proceedings, making it the only organization representing ratepayers who oppose the rate hike.
In the ruling, the Administrative Law Judge overseeing the case described the Club as “the lone proponent” of an energy approach emphasizing reliability, affordability, and independence — priorities the group says align with President Trump’s “American Energy Dominance” agenda.
“While others are lobbying to shut down Arizona’s coal plants and pour billions into unreliable Green New Scam projects, we’re standing up for the ratepayers who will be left to foot the bill,” Mussi said. “We’re proud to be the only organization in this case fighting to keep Arizona’s energy secure, affordable, and free from political interference.”
The Club’s participation ensures that Arizona ratepayers have a voice during the proceedings, according to Mussi and AZFEC Deputy Policy Director Greg Blackie. “This isn’t about politics — it’s about protecting Arizona families and ensuring that our state doesn’t fall victim to the same radical energy policies destroying affordability across the country,” said Blackie. “We intend to shine a light on the real costs, the real numbers, and the real consequences of this so-called green transition.”
The case before the Arizona Corporation Commission will determine whether APS can move forward with its proposed rate hike. The Arizona Free Enterprise Club says it plans to continue pressing for “transparency, accountability, and energy freedom,” ensuring that “ratepayers are not forced to fund reckless green energy policies.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
