Arizona Corporation Commission Presses Utilities To Focus On ‘Reliability,’ ‘Affordability’
By Matthew Holloway |
Arizona Corporation Commissioner Nick Myers hammered home the necessity of reliability and affordability to Arizona energy providers including Arizona Public Service Company (APS), Tucson Electric Power Company (TEP), UNS Electric, and Arizona Electric Power Cooperative during a workshop for the development of an Integrated Resource Plan or ‘IRP.’
The IRP is required by the commission every three years.
According to the Commission, the providers represented at the workshop gave presentations that highlighted the projected load growth in the state and analyzed their resource portfolios and their estimated revenue requirements.
Both APS and TEP discussed plans to decommission their coal-fired power plants, APS’ at Four corners in 2031 and TEP at various locations by 2032. Both of the utilities told the commission they intend to replace the coal-fired plants with natural gas generation “that can ramp up quickly during the day when customers need electricity the most and make use of existing infrastructure to maintain customer affordability as they transition to renewable energy, battery storage and potentially new technology.”
Myers reportedly pressed the utilities represented on whether they had completed their analysis based on the lowest cost and most technologically neutral means without imposing their politically-driven mandates to reduce emissions on the state as required by Commission rules. He pointedly questioned if their differing goals “may have resulted in the selection of a more costly or less reliable resource portfolio,” per the commission.
Myers said, “IRP planning is a complicated process that involves the analysis of various scenarios, multiple iterations, and complex projections. It is critical that the Commission understands what a utility’s plan is going forward and addresses any possible discrepancies or inconsistencies so that Arizonans can feel comfortable that their air conditioning will remain on and at an affordable rate.”
The commission reported that it is now reviewing the IRPs from the utilities and should bring a memorandum and proposal for review by the end of the month. In closing, Myers told the workshop, “Reliability and affordability will continue to be my highest priorities. We absolutely cannot afford to have blackout and brownouts in Arizona.”
In a July press release reported by KTAR, Chairman Jim O’Connor expressed similar concerns saying, “Hotter temperatures and monsoon winds put even more pressure on our electric grid, as we demand increasing amounts of power each year from our utilities. Thankfully, Arizona has top notch utilities with dedicated employees that coordinate to keep our power reliable across our state.”
O’Connor and the utilities at that time called upon Arizonans to reduce electrical usage by adjusting home thermostats and pushing heavy appliance usage and EV charging later into the evening.
Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.