AZFEC: Replacing Coal Energy From Cholla With Solar And Batteries Could End Up Costing Ratepayers Billions

AZFEC: Replacing Coal Energy From Cholla With Solar And Batteries Could End Up Costing Ratepayers Billions

By the Arizona Free Enterprise Club |

Earlier this year, President Trump signed a trio of executive orders aimed at keeping our nation’s vital coal power plants online. In fact, at the signing ceremony, the President explicitly called out one of Arizona’s coal plants by name. He directed Department of Energy Secretary Chris Wright to keep the Cholla Power Plant online and told the workers to remain calm because they are going to have that plant “opening and burning…coal in a very short period of time.”

The Cholla Power Plant is one of many Arizona coal plants that have either been mothballed or slated for retirement in the near future. In 2019, SRP and the other utilities shut down the Navajo Generating Station, resulting in a loss of 2,250 MW of reliable capacity. Earlier this year, an additional 425 MW of generating capacity was taken offline at Cholla. And over the next 6 years, Arizona’s public utilities, as outlined in Integrated Resource Plans recently approved by the Arizona Corporation Commission, plan to shutter every last bit of coal generation in Arizona by 2032. Most alarming is that according to those same Resource Plans, the replacement fuel for this reliable source of energy will be solar, wind, and battery storage, all to meet carbon free “Net Zero” goals that will cost Arizona ratepayers billions and destabilize the grid.

On the same day President Trump signed the coal orders, the Arizona legislature, led by Representative David Marshall, sent a letter to the Department of the Interior urging the Administration to help keep Cholla, and every other coal plant in the state, online. Last month, every Republican in the legislature voted to send HCM2014 to the Corporation Commission, urging them to protect our grid, fight to keep these plants online, and support the Trump Energy Agenda.

What Arizona ratepayers got instead was a late Friday afternoon news dump from Kevin Thompson, Chairman of the Corporation Commission, blasting the idea of reopening Cholla…

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Rep. Olson’s Bill Urges Corporation Commission To Prioritize Reliable Energy Over Net Zero Policies

Rep. Olson’s Bill Urges Corporation Commission To Prioritize Reliable Energy Over Net Zero Policies

By Jonathan Eberle |

The Arizona State Legislature is advancing a measure to urge the Arizona Corporation Commission (ACC) to prioritize affordable and reliable energy sources over intermittent renewable energy alternatives such as solar and wind.

House Concurrent Memorial 2014 (HCM 2014), introduced by State Representative Justin Olson, calls on the ACC to prevent regulated utilities from shutting down dispatchable energy sources, including natural gas and coal, in pursuit of Net Zero goals.

The legislation, which does not carry the force of law but serves as a formal request to the ACC, asks the Commission to ensure Arizona’s electrical grid remains powered by affordable and reliable energy sources; prevent regulated utilities from phasing out critical, dispatchable energy sources such as coal and natural gas in favor of renewable alternatives that may be costly and unreliable; and adopt a national model policy, “Only Pay for What You Get,” which requires utilities to recover costs only from the reliable portion of new energy generation sources.

The bill passed the Arizona House of Representatives on February 26, 2025, with a vote of 33-26-1, and was referred to the Senate’s Natural Resources Committee for further consideration.

HCM. 2014 comes amid a broader debate on the future of Arizona’s energy policies. The ACC, which regulates the state’s investor-owned utilities, has faced increasing pressure from policymakers, industry groups, and environmental advocates over how to balance affordability, reliability, and sustainability in energy production.

Supporters of the measure argue that shifting too quickly to renewable energy sources without proper reliability safeguards could lead to increased costs for ratepayers and potential grid instability.

If approved by the Senate, copies of HCM 2014 will be transmitted to the Chairperson and each Commissioner of the ACC, urging them to align state energy policies with the resolution’s recommendations. While the ACC operates independently, legislative pressure could influence future regulatory decisions regarding Arizona’s energy transition.

As Arizona continues to navigate its energy future, the debate over affordability, reliability, and sustainability is expected to remain a contentious issue among lawmakers, utility providers, and consumers.

Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.