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 Matthew Holloway | Jun 18, 2025 | News
By Matthew Holloway |
Arizona Corporation Commissioners Nick Myers and Kevin Thompson responded to reports of an upcoming primary challenge from State Representative Dr. Ralph Heap and running mate Rep. David Marshall with a surprising attack against both candidates and two of the most prominent conservative organizations in the state. After Heap confirmed his 2026 candidacy for the Commission in a call with the Arizona Republic, incumbents Thompson and Myers reportedly blasted Heap and Marshall as “special interest proxies who have been recruited to return politics into ratemaking.”
Myers would even go as far as to claim that the two GOP challengers are in the service of the Arizona Free Enterprise Club (AZFEC) and Turning Point USA (TPUSA), telling the Republic that both want “good puppets” on the Corporation Commission.
Responding to the remarks, Arizona Free Enterprise Club President Scot Mussi told the Republic that Myers and Thompason were “pretty on brand,” and added, “They always resort to attacks and attacking whoever they can to avoid having to address the substance of what’s being brought to them.”
Turning Point Action spokesman Andrew Kolvet told the outlet, “We have no idea what the commissioner means by ‘puppet,’ as we have had zero contact with any current commissioners since they have taken office.” He stated that TPUSA considers AZFEC to be “an ally.”
Although the Corporation Commission came fully under Republican control in January, the stakes for Arizona voters are high given that APS has requested yet another rate increase on top of the 8% increase it was given in 2024.
Commissioners Thompson and Myers have also drawn the ire of many Republicans by echoing the talking points of APS and Tucson Electric Power (TEP), when both utilities refused to comply with President Trump’s Executive Order to reactivate the Cholla and Springerville coal-fired power plants. As previously reported by AZ Free News, Thompson claimed that doing so would “jeopardize the grid and burden ratepayers with millions of dollars in short-sighted costs.” He also criticized the President’s intervention saying, “The Commission must hold utilities accountable and ensure that we have reliable and dispatchable generation to meet the load demands of the future. We also have to make sure we accomplish that goal in a manner that doesn’t jeopardize the grid and burden ratepayers with millions of dollars in short-sighted costs that fail to meaningfully address our long-term energy needs.”
He added, “Managing highly intricate systems like our electrical grid is far more complicated than a slogan on a bumper sticker. Continued calls from certain elected officials to reopen Cholla does nothing more than promote financially reckless solutions.”
The Commission’s refusal to follow the Trump administration’s energy agenda and pushback toward efforts to eliminate environmental, social, and governance (ESG) and Diversity, Equity, and Inclusion (DEI) policies has placed it at odds with the Republican-controlled state legislature—along with the Arizona Freedom Caucus, AZFEC, and the Goldwater Institute.
Speaking to reporters, Myers accused AZFEC and TPUSA of “making things up,” claiming, “They’ve basically been trying to run us through the mud for every little thing they can drum up.”
However, Mussi explained that the Free Enterprise Club has had “a multitude of issues,” with the Commission. “There’s been a multitude of issues that they have shown no interest in working on,” he said. “And when these issues are brought up, rather than engaging on them, they have usually gone and attacked not just us, but whoever is bringing the policies that they disagree with addressing.” In particular he pointed to APS and TEP’s integrated resource plans, which lean heavily on wind and solar generation as opposed to coal, natural gas and nuclear, and AZFEC’s drive to terminate “California-style, Green New Deal policies.”
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 AZ Free Enterprise Club | Jun 14, 2025 | Opinion
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…
>>> CONTINUE READING >>>
by Matthew Holloway | Apr 27, 2025 | News
By Matthew Holloway |
During the Arizona Corporation Commission’s annual Summer Preparedness Workshop, Chair Kevin Thompson and Vice Chair Nick Myers essentially echoed the talking points of Arizona Public Service Company (APS) and Tucson Electric Power (TEP). Both utility companies implicitly refused to reactivate the Cholla and Springerville Coal-Fired Power Plants in defiance of President Trump’s Executive Order earlier this month. Thompson claimed doing so would “jeopardize the grid and burden ratepayers with millions of dollars in short-sighted costs.”
In early April, President Donald Trump issued an Executive Order (EO) using emergency authority to keep APS’ Cholla Power Plant in operation. In a statement issued with the EO, Trump said, “I am instructing Secretary Wright to save the Cholla coal plant in Arizona, which has been slated for destruction. We’re going to keep those coal miners on the job. We’re going to have that plant opening and burning beautiful, clean coal in a very short period of time.”
According to an emailed release from the ACC, the APS representative at the workshop “stated that the process that culminated in closing the plant began ten years ago because of new regulations from the U.S. Environmental Protection Agency (EPA) making the operation of the plant uneconomic for their customers.” The utility added, per the ACC that “because of the ongoing EPA regulations requiring new equipment for pollution control and significant deferred capital and maintenance investments that would have to be made, the re-opening and continued operation of the Cholla plant would come at a significantly high cost for customers.”
APS reiterated that it intends to preserve the infrastructure of the power plant and offered that it could be used as a potential site for nuclear or natural gas power later, implicitly refusing to bring the coal-fired plant back online.
Similarly, TEP confirmed that it still intends to move forward with the scheduled retirement of Units 1 and 2 at the coal-fired Springerville Generating Station after the summer of 2027 and after the summer of 2032. The utility is also exploring the possibility of repurposing the power station for an alternative fuel source.
Vice Chair Myers commented, “We’re all aware of the detrimental loss of electric capacity with the closure of Arizona coal plants, and in part because of ongoing EPA regulations. It is a day late and a dollar short when it comes to re-opening the Cholla plant. Trying to re-open Cholla at this point would result in significantly higher rates for customers,” repeating the APS talking point.
He added, “The utilities have already been planning for this retirement and replacement costs are already being born by the utility customers. Re-opening Cholla would also require significant capital and maintenance investments that have been deferred. Further, the EPA requirements that made the continued operation of Cholla not cost-effective are still in effect. The damage has already been done. Arizona utilities are prepared for that and already planning to repurpose those plants for future generation, such as nuclear or natural gas-fired power.”
“Bringing the Cholla plant into compliance with Obama era EPA requirements will require the installation of costly scrubbers on the coal-fired units that would cost ratepayers hundreds of millions of dollars,” said Chair Kevin Thompson.
Thompson added a subtle critique of the President’s movement to reactivate the Cholla Generating Station saying, “The Commission must hold utilities accountable and ensure that we have reliable and dispatchable generation to meet the load demands of the future. We also have to make sure we accomplish that goal in a manner that doesn’t jeopardize the grid and burden ratepayers with millions of dollars in short-sighted costs that fail to meaningfully address our long-term energy needs.”
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 Daniel Stefanski | Jan 10, 2025 | News
By Daniel Stefanski |
The Arizona Corporation Commission is now entirely under Republican leadership.
On Monday, Lea Márquez Peterson, Rachel Walden, and Rene Lopez were sworn into office at the Arizona Corporation Commission (ACC), giving Republicans control of all five positions on the state agency. Peterson returned to office, while Walden and Lopez entered this position for the first time.
During the inaugural meeting of the new year, first-term Commissioner Kevin Thompson was voted as chairman of the ACC. Nick Myers became (what appears to be) the first-ever vice chair of the ACC.
In an exclusive comment to AZ Free News, Thompson said, “During our campaign, Commissioner Myers and I often spoke on the trail about our objectives once elected. We expected it to take our full four-year term, but instead we accomplished our goals within the first two years of office.”
Thompson added, “Looking forward to serving as Chairman, I’m confident we will be able to build upon our recent successes with this talented and motivated group of Commissioners. As Chair, my focus is going to be on ensuring our collective efforts are always pushing Arizona forward, making the Commission more efficient and responsive to the public, and never losing sight of our duties to ratepayers and the trust voters have placed in us.”
Peterson posted to her X account about her first day of this new term of office, saying, “I am honored to serving a second term at the Arizona Corporation Commission! Thank you to Chief Justice Timmer for conducting my oath of office. I’m looking forward to serving with Nick Myers, Kevin Thompson, Rachel Walden, and Rene Lopez!
Nick Myers said, “As best we can tell, the Arizona Corporation Commission has never had a Vice-Chairman position. Today we made history… Again. After I nominated Commissioner Kevin Thompson as the new chairman, he nominated me as the very first Vice-Chairman!”
Rachel Walden wrote, “It’s official! Thank you to the Commission staff for organizing today’s swearing in ceremony and agenda. Thank you to my friends and family for attending! And a massive thank you, Arizona! It’s an honor to go to work for you.”
All five commissioners are excited about their upcoming work at the ACC over the next two years – even in a divided state government with a Democrat as Governor and Republicans maintaining control of the Arizona Legislature. In his remarks following his unanimous election as chairman of the ACC, Thompson said, “I want to continue to support this Agency and build upon a culture of success and further ensure the Commission is a place the brightest and best want to work. Where we can all be excited to step foot in this building and be proud of what we do to ensure Arizona remains a great place for our children and grandchildren and businesses for decades to come.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
