Corporation Commission Should Reject Utility-Proposed ESG Net Zero Resource Plans

Corporation Commission Should Reject Utility-Proposed ESG Net Zero Resource Plans

By the Arizona Free Enterprise Club |

A History of Harmful Mandates

Arizonans have faced repeated attempts over the last six years by various interest groups to impose costly Green New Deal energy mandates on utility ratepayers. In 2018, liberal billionaire Tom Steyer bankrolled a statewide ballot measure to require utilities to obtain 50% of their energy from renewable sources by 2030. Voters realized the danger of this California-style energy plan and rejected it by a 2 to 1 margin.

Immediately after the Steyer initiative failed at the ballot, the Arizona Corporation Commission began considering their own green energy mandate to completely ban fossil fuel generation in Arizona by 2050. The Commission’s plan was even more radical than the energy initiative, and this time the mandate was being pushed by our regulated utilities, not far left radicals. This caught most observers by surprise—the utilities were among the opponents of the Steyer initiative, and now they were cheerleading energy mandates.

Why the change of heart by our monopoly utility providers? The reason is simple—they knew that if the Commission adopted official policy requiring Green New Deal mandates, they would be guaranteed full cost recovery from their captive ratepayers. After fierce opposition from ratepayers and organizations like the Free Enterprise Club, this proposed mandate was rejected by the Commission in early 2022.

Unfortunately, this victory for ratepayers was short lived. Almost immediately after the Commission voted to reject costly energy mandates, the utilities announced that they would be implementing their clean energy agenda anyway, irrespective of what their captive ratepayers thought about it. This didn’t come as a total surprise, considering these utilities have gone all-in on Environmental, Social, and Governance (ESG) and the accompanying “Net Zero” commitments to ban fossil fuels in their SEC filings to shareholders, which our organization began advocating against at the Commission earlier this year.

We told the Commission that if the utilities are allowed to operate under ESG, every downstream policy decision would be shaped by it—ultimately resulting in massive ESG rate hikes for Arizona ratepayers. Based on the energy resource plans submitted by the utilities last month, it appears our predictions have been proven correct…

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MAG Has Become Another Puppet For The Left’s Climate Agenda

MAG Has Become Another Puppet For The Left’s Climate Agenda

By the Arizona Free Enterprise Club |

For local governments—and councils of governments—in Arizona, it appears that creating a climate action plan has become all the rage. Maybe that’s because it pays well.

The latest group to bow down at the altar of the Biden administration’s climate change agenda is the Maricopa Association of Governments (MAG). Back in August, MAG received a $1 million grant from the Environmental Protection Agency’s (EPA) Climate Pollution Reduction Grant Program to serve as the lead planning organization for the Phoenix-Mesa-Chandler metro area. The grant requires MAG to develop a priority climate action plan by next March, a comprehensive climate action plan by 2025, and a status report in 2027 after the four-year grant period expires.

But this $1 million grant isn’t the only way MAG stands to benefit…

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Tucson Is Heading Down the Path of Other Failing Leftist Cities with Its Climate Action Plan

Tucson Is Heading Down the Path of Other Failing Leftist Cities with Its Climate Action Plan

By the Arizona Free Enterprise Club |

In the midst of the COVID-19 pandemic in 2020, multiple government officials seized the opportunity to grab more power. Perhaps chief among them were the Tucson city council and Mayor Regina Romero, who exploited the moment by declaring a “climate emergency.” Now, the city of Tucson has finalized its plan to solve this “climate emergency”—to the tune of an estimated $326 million. But it’s not just the cost that should concern you.

Tucson’s Climate Action Plan, titled “Tucson Resilient Together,” is ripe with Green New Deal mandates that are aimed at forcing citizens out of their cars, controlling their lives, and destroying the community. By 2050, they plan to force 40% of all people living in Tucson to commute by walking, cycling, taking public transportation, or “rolling” (whatever that means). And that’s just the start.

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Arizona Legislature $16 Billion Budget for 2023 Causes GOP Infighting

Arizona Legislature $16 Billion Budget for 2023 Causes GOP Infighting

By Corinne Murdock |

Less than 24 hours after the Joint Legislative Budget Committee published the proposed budget report late Monday, infighting broke out among Arizona’s House and Senate Republicans.

Tuesday marked lengthy budget discussions in the House Appropriations Committee, but in the Senate discussions were cut off abruptly with an indefinite recess of the Senate Appropriations Committee. Effectively, public budget talks ended before they started in half of the State Capitol.

State Senator David Gowan (R-Sierra Vista) said that the House didn’t honor its agreements to pass some bills; one of those significant ones being the Arizona Board of Regents (ABOR) continuation. 

“The House has decided that they will not honor the deals we created together and move things forward. I know there’s some media out there, social stuff going on, that they’re trying to pin us and maybe leverage us. But the point is here, they blew the deal,” said Gowan.

Gowan added that he wasn’t willing to call the committee together later on in the day, either. It appears that House legislators reneged on some serious closed-door talks — enough to upset him.

“It would be pretty hard for me to want to come back and help people who wish not to honor deals. In that effort, it’s just not appropriate in what just occurred, so I want that out to the world,” said Gowan. 

However, State Representative Travis Grantham (R-Gilbert) contended that he’d never heard of these deals as the House Rules Committee Chairman. He criticized Gowan’s preferences as “special interest” legislation that was “fat, bloated, […] unconstitutional,” and adverse to Republican interests. Gowan didn’t reply.

“I have never discussed a deal, agreed to a deal or been part of some secretive deal to move certain Senator’s special interest bills that are fat, bloated and in some instances likely unconstitutional,” wrote Grantham. “And further, why would we invite and pay an industry, with taxpayer dollars to come into our great state when they will ban, boycott and take away major meetings, corporations and events because of our Republican majorities and sound policies? #BadIdea”

Those weren’t the only serious breaks from presenting a unified Republican front on the budget. Several individual Republican legislators vocalized dissatisfaction with the budget emphatically on social media and during committee votes.

As the majority, the GOP will have to resolve those opposed within its membership if it hopes to secure the budget’s passage before the new fiscal year begins next Friday, July 1.

Among those opposed to the budget are State Senator Michelle Ugenti-Rita (R-Scottsdale). She asserted that the budget wasn’t fiscally responsible in the face of a looming recession. Ugenti-Rita scorned provisions of the bill as “pet projects” for fellow members.

That contradicted how State Representative Regina Cobb (R-Kingman) characterized the budget during the House Appropriations Committee on Tuesday. Cobb said that the proposed budget bills would afford the state with an 8 to 10 percent cushion — enough to “weather the storm” of a pending recession, asserting repeatedly that paying off the pension debt and rollovers would remove troublesome burdens in coming years.

“Are we going to flatline tomorrow or July 1? Absolutely not, but we’ve projected it to be fiscally conservative,” said Cobb. “I think if we’re going into a recession, we’re paying off a lot of debt that could be hanging over our heads during a recession.”

State Representative Jake Hoffman (R-Queen Creek) also opposed the budget. He declared that the budget would only worsen an impending sustained recession and current, serious economic destruction. Hoffman criticized the raises to state employees and judges of up to 15 percent. Although Hoffman was the only Republican committee member to vote against the bill, the legislator said that the budget doesn’t reflect the majority’s platform.

“Everything in [our constituents’] lives are going up, and they’re not getting raises right now. If they are, they’re under the inflation rate,” said Hoffman.

Arizona Free Enterprise Club, a free market policy and advocacy organization, asserted that extraneous funding for agendas contrary to the interests of Arizonans were sprinkled into the budget. In a statement to AZ Free News, President Scot Mussi declared that the budget largely fulfilled Democrats’ wishlist. 

“The proposed budget deal includes hundreds of millions in new spending, subsidies for Hollywood liberals to make movies, tax hikes for a Green New Deal transit plan in Maricopa County and special interest pork to buy Democrat votes,” said Mussi. “We should be working toward a budget that has full Republican support, not a Build Back Broke budget supported by Democrats.”

By and large, Democrats focused their comments Tuesday on lamenting the budget’s K-12 spending. Some accused the budget’s design as a “shell game.” Several noted that they didn’t like the idea of funding more border security. 

One of the most vocal opponents of the budget, State Representative Kelli Butler (D-Paradise Valley), called the ongoing revenue calculations “irresponsible” during committee. Butler also said that she and a majority of Arizona voters wanted $1 billion for K-12 education. Butler accused the budget of shell games related to taxation that made education funding more vulnerable. 

Despite the ongoing economic turmoil and near-universal expectation of a recession, Butler asserted that the economy was “thriving.” Butler also took issue with the fact that she was still getting briefings by midnight and memos from staff at one am early Tuesday, arguing that no legislators had time to figure out what’s all in the budget.

Present at the State Capitol were educator activists with the Arizona Education Association (AEA) rallying for more teacher pay using the $5.3 billion surplus.

Those for the budget praised it for getting more things right to address the state’s current needs. One Democrat, State Representative Cesár Chávez (D-Maryvale) signaled support for the budget, pointing out during committee that the legislature had a little over a week before its deadline for the budget hits. He concurred with his Democratic peers that K-12 education needed a “true, historic investment,” but that he had a responsibility to make the budget work ahead of the deadline. 

State Representative Michelle Udall (R-Mesa) offered a list of positives within the budget solving statewide problems: over $1 billion to solve water supply problems; over $1.6 billion overall increase in K12 spending, which meted out to $750 per pupil or a $23,000 increase per classroom; over $1 billion in debt payoff in unfunded liabilities and pensions; over $1 billion increase in public safety (police, fires, courts); and over $500 million to increase health care like in diabetes management training and postpartum care.

Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.

The Corporation Commission’s Upcoming Meeting Could Have a Huge Impact on You

The Corporation Commission’s Upcoming Meeting Could Have a Huge Impact on You

By the Arizona Free Enterprise Club |

If you don’t typically pay attention to the Arizona Corporation Commission, now is a good time to start.

The role of this government agency is to set rates and policies for utilities. That sounds simple enough, right? But for over a year now, the commission has been in the process of developing a “clean energy” plan that looks to ban all fossil fuels in our state. Next week, this renewable energy mandate will be brought up for a vote again. And the consequences could be a disaster.

Green New Deal mandates would cost ratepayers over $6 billion

In July 2020, the commission quietly released its plan to impose California-style energy mandates in our state. But it wasn’t until August of this year that an independent cost analysis had been completed. And the results were eye-opening.

In order to achieve the 100% clean energy mandate by 2050, utilities would need to phase out all fossil fuels, purchase more solar and wind generation, expand lithium-ion battery storage, and convert natural gas generation to green hydrogen. The cost for all this would be over $6 billion, which comes out to an estimated $60 per month or $720 per year for the average ratepayer.

Remember when the green energy lobby said that these mandates would actually save you money? It turns out that was just another lie. But the cost isn’t the only issue.

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