by AZ Free Enterprise Club | Aug 20, 2025 | Opinion
By the Arizona Free Enterprise Club |
In 2020, Arizona’s largest monopoly utility announced a voluntary commitment to one of the most extreme clean energy goals in the world: to go 100% carbon free by 2050. Five years later, they’re rolling that commitment back. Sort of.
When they first announced their original Clean Energy Commitment in 2020, APS boasted about their plans to decarbonize. According to their own release, they weren’t doing what they described as the “easy thing” other utilities were doing–developing resource plans that still allow you to produce some carbon emissions, so long as you offset them elsewhere. No, they were committing to go “carbon free,” which means shutting down every single source of baseload power beside nuclear and replacing it entirely with solar, wind, and battery storage.
But late last week, APS announced a modification to their climate commitment. Instead of going carbon free, APS is switching to carbon neutral by 2050.
How is the new commitment different than the old one? For ratepayers worried about skyrocketing utility bills, it doesn’t change much…
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by Matthew Holloway | Aug 15, 2025 | News
By Matthew Holloway |
A coalition of Arizona businesses from across the state released a statement expressing strong support for a newly announced project by Energy Transfer LP. The project will bring an interstate natural gas pipeline into the state from West Texas, constructed, owned, and operated by Transwestern Pipeline Company. It will power Arizona Public Service (APS), Salt River Project (SRP), Tucson Electric Power (TEP), Unisource Energy Services, and other utilities that supply energy to Arizona’s homes and businesses.
The new 42-inch pipeline, kept pressurized by nine compression stations, will span 516 miles across Texas, New Mexico, and Arizona. It will carry 1.5 billion cubic feet per day of natural gas. It is expected to come online in 2029.
AZBigMedia reported that the project is expected to cost approximately $5.3 billion, including about $600 million of Allowance for Funds Used During Construction (AFUDC)
“With this new natural gas pipeline, Arizona will be well positioned to have reliable baseload power to meet the growing demands of our economy,” said Arizona Corporation Commissioner Rachel Walden in a statement. “I’m pleased to see that the City of Mesa is participating in this project, serving as an example of Arizona’s ability to attract new commerce with affordable power while innovating in water conservation.”
In a post to X, Commissioner Nick Myers noted that this annoucement came alongside the recent accouncement that APS is rolling back its Biden-era zero-carbon goals. He said, “On the same day it was announced that APS is backing off their Green New Deal style policies, further proof that this commission has not been friendly to those policies, it was announced that Transwestern will be putting in another natural gas pipeline into Arizona. Energy dominance at its best!”
According to the Arizona Chamber of Commerce and Industry, “The project will help ensure that Arizona remains competitive with other high-growth states by providing the reliable, cost-effective energy necessary for economic development and job creation, particularly as energy demand is projected to soar.”
The Chamber added in a press release, “Natural gas is a cornerstone of Arizona’s energy system, generating 45% of the state’s electricity. It plays a critical role in supporting Arizona’s modern electricity grid, helping utilities meet peak demand during extreme summer weather and enabling the deployment of renewable energy resources like solar and wind year-round. Additionally, more than 1.4 million residential, commercial, and industrial customers count on the natural gas distribution system for their home comfort and business needs, including in sectors like semiconductors, EV batteries, and other advanced manufacturing.”
APS director of Resource Integration and Fuels Jill Freret told KJZZ, “This expansion for APS and for some of our peer utilities really allows us to bring in more natural gas to fuel existing facilities with growing demand and position us to have additional gas on our system out into the future.” Freret observed that the energy demand of APS is expected to increase by over 60% in the next 13 years.
The benefits of the project are not limited to the energy industry, however. Patrick Bray, Executive Vice President of Arizona Farm and Ranch Group, explained, “Access to natural gas supply is essential for our farmers and ranchers to power critical operations. This pipeline is a smart investment that will ensure the continued success and competitiveness of Arizona’s agriculture industry, allowing us to produce the food that sustains our communities and contributes significantly to our economy.”
In addition to dozens of Chambers of Commerce across the state, from Flagstaff to Sahuarita, industry organizations including the Arizona Cattle Feeders Association, Arizona Lodging & Tourism Association, Arizona Manufacturers Council, Arizona Multi-housing Association, Arizona Restaurant Association, Arizona Rock Product Association, Arizona Small Business Association, Arizona Trucking Association, and the United Dairymen of Arizona, all expressed support for the pipeline.
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 Jonathan Eberle | Aug 9, 2025 | News
By Jonathan Eberle |
Arizona Public Service (APS), the state’s largest electric utility, announced Wednesday it will no longer pursue its previous pledge to achieve zero carbon emissions by 2050. The company also scrapped its interim emission reduction targets and removed a commitment to end coal-fired generation by 2031 from its website. The utility now aims to be “carbon neutral” by 2050 — a less stringent target that allows for continued fossil fuel use if emissions are offset through technology such as carbon capture.
“Our aspiration has evolved based on changes to energy markets and customer needs, and our plans are built around doing what’s right for the people and prosperity of Arizona,” said APS spokeswoman Jill Hanks in a statement to 12News.
The announcement quickly drew sharp criticism from environmental advocates, who accused the company of backing away from its public commitments. “APS is walking away from every clean energy promise it made to the public, to regulators, to shareholders, and to the communities it serves,” said Autumn Johnson, Executive Director of the Arizona Solar Energy Industries Association. “We are left with vague intentions and zero accountability.”
A free-market advocacy group also voiced concerns, though from a different perspective. The Arizona Free Enterprise Club argued that the new plan still comes with a heavy cost to consumers. “While this is modestly better than the carbon-free plan they have been pushing for the last five years, APS’ new ‘carbon neutral’ plan will still cost ratepayers billions,” said Scot Mussi, the group’s president. “The priority should be reliable and affordable baseload power for Arizonans, not meeting arbitrary carbon goals that require massive amounts of expensive wind and solar that will degrade the grid.”
Some of Arizona’s elected officials also weighed in. Arizona Governor Katie Hobbs criticized the decision on X, writing, “Arizona needs an abundance of energy, with a strong, and reliable grid to keep our communities safe and to continue our economic growth. This decision sets us back. It makes our air dirtier, hurts our growing clean energy economy, and forfeits the cost savings of renewable options.”
She continued, “I’ll be reaching out to APS to discuss their decision and reiterate that we must continue investing in new energy technologies and diversify our energy portfolio at the fastest rate possible.”
Hobbs’ response is interesting given her history with APS. After her inauguration, it was revealed that Pinnacle West Capital Corp., the owner of APS, donated $250,000 to Hobbs’ inaugural fund. The group also made a $100,000 donation in 2024 to Hobbs’ secret litigation fund.
Republican gubernatorial candidate, and sitting U.S. Representative, Andy Biggs offered a sharply different take than Hobbs, posting, “Every utility in our state should be prioritizing reliable and affordable energy for Arizonans, not trying to meet the demands of environmentalists pushing the Green New Scam that hurts Arizona businesses and families. As Governor, I’ll make sure Arizona aligns with President Trump’s energy agenda to help our economy flourish.”
APS data shows most of the state’s surging energy demand is coming from the expansion of data centers rather than residential growth. The company and its investors view the sector as a major opportunity for revenue.
While APS maintains it remains committed to expanding cost-competitive clean energy, the rollback represents a significant departure from the 2020 pledge.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Jun 20, 2025 | News
By Matthew Holloway |
Only weeks after refusing to comply with an Executive Order to reactivate the Cholla Power Plant in Northern Arizona, Arizona Public Service (APS) has filed documents with the Arizona Corporation Commission (ACC) requesting an increase in the state-regulated electrical utility’s revenue of $579.5 million. That equates to a jump in residential electrical rates of approximately 14.5%. The hike would represent a 30% increase in residential rates since 2023.
The utility is also seeking permission from the Commission to unilaterally adjust prices annually using “rate design schedules.” APS justified this request to the ACC in the 2,323-page application docket claiming, “The costs to ensure reliable service to customers have rapidly increased due to high rates of inflation, persistently high interest rates, and continued supply chain and trade policy volatility.”
The utility alleged that a “significant revenue deficiency … based on the 12-month period that ended on December 31, 2024 (Test Year), demonstrates that APS’s current rates do not recover sufficient revenue to ensure reliable service.”
Notably, APS and its parent company, Pinnacle West Capital Corp., did have enough revenue to give Governor Katie Hobbs $250,000 for her inauguration and even bankrolled her legal battle with Kari Lake to the tune of $100,000.
“The tremendous growth across APS’s service territory shows no sign of letting up, with the Company’s infrastructure and reliable energy supply providing the backbone of this historic expansion,” APS said. “And yet, with high rates of inflation, persistently high interest rates, and continued supply chain volatility, the costs to serve current APS customers (let alone prepare for growth) are substantially higher than when the test year concluded in the Company’s last rate case.”
Just one year ago, the ACC approved a rate increase for residential customers of approximately 8 percent. That was followed by significant turnover in the commission with Republican newcomers Rachel Walden and Rene Lopez joining incumbent Lea Márquez Peterson to defeat the Democrat nominees and lock down all five seats for the GOP.
In the upcoming 2026 election, Arizona Reps. David Marshall and Ralph Heap are challenging incumbent commissioners Chairman Kevin Thompson and Vice Chairman Nick Myers. During a Tuesday presser, Marshall and Heap accused the commissioners of excessive price hikes and blocking President Donald Trump’s energy agenda.
“We have some families now who have to make a decision. Do I buy less groceries so I can pay my power bills? Or just deal with it or go without power,” Marshall told reporters.
“The Corporation Commission may not always make the headlines,” he added. “But the decisions made there affect every one of us every single day.”
In a statement responding to the primary challenge from Reps. Marshall and Heap, Commissioners Thompson and Myers defended their record saying, “We’ve taken steps to ensure our utilities are planning responsibly and not chasing costly, agenda-driven energy mandates. That’s why we required APS to prove in its 2023 Integrated Resource Plan that it has enough reliable and dispatchable generation to replace retiring plants. And it’s why we initiated the termination of Kris Mayes’ Renewable Energy Standard, which was an outdated mandate that artificially inflated utility costs by forcing ratepayers to subsidize unreliable, high-cost sources like wind and solar.”
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 17, 2025 | News
By Staff Reporter |
Governor Katie Hobbs has another secretive fund, this one used to cover legal expenses.
Hobbs has never disclosed the existence of this fund, which covered the costs of a lawsuit filed against her by former gubernatorial candidate Kari Lake. AZ Capitol Times uncovered and first reported on its existence after discovering a financial report from the parent company of the state’s electric utility giant, Arizona Public Service (APS), disclosing a gift of $100,000 in 2024 to cover Hobbs’ legal expenses.
State law enables Hobbs to maintain this secretive fund; it has for nearly a decade.
APS parent company, Pinnacle West Capital Corporation (PWCC), also gave to Hobbs’ other secretive fund for her inauguration.
Although Hobbs’ legal fund was discovered, the governor says she won’t be publicizing any other details about the donors or total amount collected.
Hobbs also attempted to keep her inaugural fund secret, but relented to public disclosure after receiving threats of litigation. Records revealed that Hobbs’ inaugural fund collected nearly $2 million, but the event cost less than $210,000. Government transparency watchdogs attempted to determine whether Hobbs’ inauguration team continued to collect donations in excess of a pre-event budget, to no avail.
PWCC’s singular donation of $250,000 to the fund covered the inauguration in its entirety — but Hobbs pocketed the excess of well over a million for her reelection bid next year. Other large donors to that fund issued $100,000 each: Blue Cross Blue Shield, the National Association of Realtors, and Sunshine Residential Homes.
That last major donor, Sunshine Residential Homes, received millions in contracts from the Arizona Department of Child Safety (DCS) after making around half a million in campaign donations to Hobbs and the Arizona Democratic Party — despite DCS denying pay increases to home operators and dropping 16 providers during the contract renewal process.
Michael Beyer, the newly named communications director for Hobbs’ reelection campaign, defended the legal fund and its secrecy in a statement to the AZ Capitol Times.
“Kari Lake baselessly challenged the results of a free and fair election she lost,” said Beyer. “We won eight times in court, and yet Lake fought the results all the way through November 2024 when she finally lost her last appeal to the Arizona Supreme Court.”
Beyer recently joined the Hobbs campaign following his stint as the communications director for Virginia Senator Tim Kaine’s re-election campaign. Beyer’s past communications work includes the campaign for Mississippi’s 2023 Democratic gubernatorial candidate Brandon Presley, the Ohio Democratic Party, New Hampshire Democratic Party, and the Democratic Governors Association.
Some question whether the funds are another example of alleged “pay-to-play” occurring within the governor’s office. Hobbs approved legislation permitting public power entities like APS to engage in securitization. APS wrote the legislation.
Hobbs issued a defense of her passage of the bill, saying it would lower energy costs and improve grid resiliency.
“By working with bipartisan legislators I put in safeguards to ensure everyday Arizonans, not utilities, will benefit from securitization. And I made sure this bill will provide a tool to grow our energy economy,” said Hobbs. “Because of this bill, Arizona families will save money and we will help create more jobs in a clean energy economy that, in just the last few years, has brought nearly $18 billion in investments to our state and created over 18,000 quality jobs.”
Hobbs also vetoed legislation from Senate President TJ Shope requiring companies seeking state contracts to list all donations given in the past five years to the governor.
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