by Matthew Holloway | Apr 13, 2026 | News
By Matthew Holloway |
The Arizona Corporation Commission approved a temporary bill credit for UNS Electric customers, expected to reduce monthly costs during peak summer usage.
According to a Wednesday press release, the Commission approved an $18.50 monthly credit for customers with average usage of 884 kilowatt-hours. The credit will be in effect from May 1, 2026, through December 31, 2026. The measure was approved in a 5–0 vote during the Commission’s open meeting on April 8.
The adjustment is tied to the Purchased Power and Fuel Adjustment Clause (PPFAC), a mechanism which utilities use to recover fuel and purchased power costs. The Commission stated that utilities do not earn a profit on expenses recovered through the PPFAC.
Commissioner Kevin Thompson said in the release that the credit follows the Commission’s earlier action to address a significant under-collection in the PPFAC balance.
In May 2023, the Commission approved a temporary surcharge to reduce the balance, which was accruing interest costs that were being passed on to ratepayers.
“The Commission had to make a tough vote in 2023 to pay down significant fuel cost debt that had been allowed to build as a result of circumstances outside the utilities’ control,” Thompson said. “As a result of the temporary surcharge, UNS was able to rapidly pay down the debt and save ratepayers money in the long run. Asking ratepayers to pay more in their monthly bills to pay down costs is never an easy task, but this solution removes the massive debt hanging over the heads of the ratepayers and provides additional bill relief when customers need it most.”
The surcharge was eliminated in December 2025 after the balance was paid down. The Commission said that the change reduced the average residential customer’s bill by approximately $20 per month.
Following the removal of the surcharge, the utility reported a positive PPFAC balance of $5.6 million in mid-February 2026, which has continued to grow.
According to the release, UNS Electric began experiencing under-collection in October 2021, which grew to approximately $48 million. The deficit was attributed to increased natural gas prices during the COVID-19 pandemic, extreme weather events including Winter Storm Uri, and global energy market impacts related to the Russian invasion of Ukraine.
“As we are approaching the summer heat, I am glad the Commission was able to provide some rate relief for customers in Kingman, Lake Havasu, Nogales, and other smaller communities in Mohave and Santa Cruz counties,” Chairman Nick Myers said in a statement.
With the new temporary credit in place, the Commission said a typical residential customer is expected to see an average monthly reduction of approximately $38 this summer compared to the same period last year.
“As regulators we often have to make difficult decisions as we balance the various interests involved in ratemaking,” Myers said. “In this case, I am pleased that our difficult decision to address the PPFAC in 2023 has resolved the problem and resulted in a meaningful reduction in rates for UNSE customers through the end of the year.”
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 Ethan Faverino | Feb 8, 2026 | Economy, News
By Ethan Faverino |
Arizona House Republicans on the Natural Resources, Energy, and Water Committee have taken action to address skyrocketing gas prices and utility bills, passing a sweeping package of bills designed to lower fuel costs, enhance energy reliability, and defend ratepayers.
Under the leadership of Chairman Gail Griffin (R-LD19), the measures align with the House Republican Majority Plan’s core priorities of unleashing economic prosperity, promoting government efficiency, and protecting individual rights and liberties.
The legislation, which advanced on a party-line vote with Democrats in opposition, targets the challenges faced by Arizona families, particularly in Maricopa and Pinal Counties, where severe summer fuel blend requirements have driven up prices at the pump. By prioritizing affordability and reliable power, these bills aim to ease the financial burden on households amid rising energy demand.
“The cost of living for Arizona families, including gas and electricity, continues to increase, and Republicans are acting,” stated Chairman Griffin. “This package puts affordability first by lowering fuel costs, protecting ratepayers from higher utility bills, and making sure Arizona has dependable power as demand grows. The Majority Plan is clear: government should work to ease the cost burden on families, not make them worse.”
Bills Tackling High Gas Prices
- HB 2145 (Rep. Griffin): Amends motor fuel statutes to empower the President of the Senate and Speaker of the House to jointly request EPA fuel waivers during shortages if the Governor does not act, providing a defense against price surges.
- HB 2400 (Reps. Willoughby, R-LD13, and Biasiucci, R-LD30): Implements a seasonal suspension of the state’s 18-cent gas tax from May through September in Maricopa and Pinal Counties. The bill ensures local governments are reimbursed for lost highway revenue through allocations from the Arizona Highway User Revenue Fund, including $27.588 million to counties, $39.93 million to cities and towns, and $5.082 million to larger municipalities. It also includes an emergency clause for immediate implementation and exempts the Department of Transportation from rulemaking for one year.
- HB 2696 (Rep. Willoughby): Directs the Arizona Commerce Authority to prioritize reducing fuel and gas prices as its primary objective for two years, expiring December 31, 2029. The authority must collaborate with the oil and gas industry to study repealing the cleaner-burning gasoline blend, building new pipelines, establishing a strategic reserve, and exploring in-state refineries, including reviving a proposed facility in Yuma County. Status updates will be provided to legislative committees, with a final report due by October 1, 2026.
- HB 2955 (Rep. Willoughby): Amends motor fuel standards to end the expensive summer fuel blend in populous counties, subject to EPA waiver under the Clean Air Act. It allows for gasoline compliant with ASTM D4814 and vapor pressure limits, addressing supply shortages and enabling lower-cost alternatives.
- HCM 2008 (Rep. Willoughby): A concurrent memorial urging Congress and the EPA to eliminate the federal gas tax on Arizona’s cleaner-burning gasoline in Maricopa and Pinal Counties from May to September or grant the EPA administrator emergency waiver authority for costlier blends. This recognizes Arizona’s progress toward National Ambient Air Quality Standards while highlighting the undue tax burden on specialized fuels.
Supporting these efforts are additional bills to promote long-term solutions:
- HB 2014 (Rep. Fink, R-LD27): Requires the Department of Environmental Quality (ADEQ) and Arizona Department of Agriculture to conduct air emissions modeling and feasibility studies on alternative gasoline blends, including federal reformulated, California phase 3, and conventional options. Reports must be published by September 30, 2027, with $100,000 appropriations each for modeling and studies.
- HB 2401 (Willoughby and Biasiucci): Mandates biennial reviews by ADEQ of fuel formulations available under federal standards, assessing air quality impacts in regulated areas, and submitting recommendations to the Department of Agriculture, the Governor, the President of the Senate, the Speaker of the House, and the Secretary of State by December 31 of each review year.
- HB 2428 (Griffin): Authorizes voluntary mobile emissions reduction credit programs, permitting emissions credits for nonroad engines under Clean Air Act guidelines, with permits issued by ADEQ for up to 20 years, supported by chambers of commerce, utilities, and Maricopa County.
“Today we heard from organizations with the time and resources to lobby against affordable prices for Arizona families, but not from the families paying more at the pump,” explained Majority Whip Julie Willoughby. “Working families cannot take time off to come to the Capitol and ask for relief; that is why we are here to help be their voices.”
“Eighteen cents a gallon may sound small to some, but it matters to families trying to make ends meet,” Willoughby added. “I will do everything in my power to deliver relief now while we continue working to fix the fuel blend and supply problems. Families need lower prices, not excuses.”
Bills Ensuring Energy Reliability and Ratepayer Protections
- HB 2331 (Reps. Marshall, R-LD7 and Heap, R-LD10): Renames and expands energy reliability statutes to require public power entities and service corporations to prioritize domestically produced fuels, minimize foreign reliance, and evaluate resources for affordability, reliability, and cleanliness. Defines “clean energy” to include low-emission sources like nuclear and natural gas, with reliable sources needing at least 50% capacity factor and rapid ramp-up capabilities. The bill emphasizes hydrocarbons and finds domestic sourcing essential for public health and safety.
- HB 2756 (Reps. Griffin and Blackman, R-LD7): Adds provisions for public power entities and electric corporations to report quarterly on new extra-high load factor customers, including interconnection requests and completions. These customers must be factored into load growth projections. The Arizona Corporation Commission (ACC) is directed to adopt rules on contracts, minimum billing, and pre-execution reviews to protect other ratepayers, excluding member-owned cooperatives. Requires cost-of-service studies within 180 days and an ACC workshop within 90 days to assess impacts on residential bills and potential new customer classes.
These bills now advance for further legislative consideration.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Jan 17, 2026 | Economy, News
By Ethan Faverino |
State Representatives David Marshall (R-LD7) and Ralph Heap (R-LD10) introduced House Bill 2269, a measure to eliminate the state sales tax on electric and gas utility bills for Arizona residents and businesses.
The proposed legislation would suspend the state’s 5.6% sales tax on electricity and natural gas utilities until either $2.3 billion in cumulative tax relief has been provided to Arizonans or December 31, 2046—whichever comes first.
Once the $2.3 billion threshold is reached, the Legislature would then decide whether to extend, modify, or reinstate the exemption.
“People are getting crushed by rising costs, making it harder to live and do business in our state,” said Representative Marshall. “Almost everyone pays a local utility for electricity or gas. Eliminating the tax on this expense represents one of the most immediate and direct ways we can help working families keep costs affordable.”
The 5.6% tax on electricity and gas quietly adds up on monthly bills, leaving the average household paying more than $100 a year in utility tax—funds that could instead support necessities like groceries, housing, and childcare.
Representative Marshall highlighted a structural concern with the current system: “Taxing electric and gas utilities creates a perverse incentive for the government to support increased rate hikes. If rates go up, the state gets more money. That leads some to view rate increases as a source of potential funds for their liberal pet projects. That’s not right; it’s time to put the people of Arizona first.”
“While we’re unsure of any legal way to get ratepayers’ money back, there are things we can do to help reduce costs today,” Marshall continued. “In my opinion, the next best thing we can do is try to provide justice by eliminating taxes on electric and gas utilities moving forward. That’s why, over the next 20 years, we are proposing no state tax on utilities until every penny of the $2.3 billion that was wrongfully extracted from the Arizona ratepayer is metaphorically ‘paid back’ to hardworking families.”
He added, “This bill will save most residents between $100 and $120 per year, on average. Once the $2.3 billion threshold has been met, then the state can determine what it wants to do with the exemption from there, including whether to reassess the tax or extend the exemption even further.”
Representative Heap pointed to actions taken by the Arizona Corporation Commission as the basis for the bill’s $2.3 billion figure: “In 2006, Arizona Corporation Commissioner Kris Mayes catered to outside special interests and adopted expensive renewable energy surcharges that cost ratepayers more than $2.3 billion over the last 20 years. This special interest slush fund also led to foreign-owned boondoggles like the Solana Generating Station, which Kris Mayes personally supported, and which cost ratepayers more than three times the above-market rate of power.”
“While repealing these mandates may help to prevent new costs,” Heap added, “it will do nothing to compensate customers for the unjust surcharges that Kris Mayes forced ratepayers to pay over the last 20 years.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
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 AZ Free Enterprise Club | Nov 14, 2025 | Opinion
By the Arizona Free Enterprise Club |
Two months ago, Arizona’s monopoly utilities and their political allies were patting themselves on the back about the expansion and development of a couple of new natural gas projects that they claim will help the Grand Canyon state keep up with growing energy demand.
On the surface, an announcement of new projects like the Transwestern Expansion should have been great news for Arizona ratepayers. Our state is in desperate need of more reliable, dispatchable power; especially after years of reckless green new deal investments that have raised costs and reduced reliability.
But sadly, it turns out that SRP’s enthusiasm for gas isn’t about expanding baseload power on the grid after all. The new gas capacity is instead being used to replace existing coal power generation that SRP has pledged to shut down in Arizona. All to meet ridiculous self-imposed carbon reduction goals and climate commitments that should have been junked a long time ago…
>>> CONTINUE READING >>>
