by Matthew Holloway | May 23, 2026 | News
By Matthew Holloway |
The Arizona Corporation Commission (ACC) is urging residents to contact their electric utility providers now as summer temperatures rise and higher electricity bills are expected to impact households across the state.
According to a press release, the ACC warned that triple-digit temperatures and increased air conditioning use typically drive significant month-to-month increases in electricity bills beginning in June and continuing through the summer months.
The commission said higher summer energy usage can create affordability challenges for households and businesses and encouraged customers concerned about paying utility bills to reach out to their electric providers before balances become unmanageable. Utilities may offer payment arrangements, budget billing programs, and financial assistance options to eligible customers.
“As we head into summer, I encourage ratepayers to explore ways to manage their energy use and to contact their electric utility if they need financial assistance,” Arizona Corporation Commission Chairman Nick Myers said. “The Commission’s responsibility is to ensure rates are just and reasonable, while ratepayers have the ability to control their monthly bills through their energy usage.”
Commissioner Lea Márquez Peterson urged customers to prepare early for summer utility costs and highlighted the commission’s seasonal protections against service disconnections.
“It’s important that our regulated utility customers prepare now for the heat of Arizona’s summer months by reaching out to their utility to learn about energy saving tips and programs that can help during financial hardships,” Márquez Peterson said. “Remember – the ACC has approved a disconnection moratorium from June 1 – October 15 to ensure customers are not disconnected for non-payment and can work out a payment plan.”
The ACC said weather remains the largest driver of summer electricity costs and advised consumers not to delay seeking assistance if they anticipate difficulty paying upcoming bills. The commission said early communication with utility providers can help customers access support programs and avoid financial hardship.
The commission also provided several energy-saving recommendations for Arizona residents during the summer months, including keeping blinds and curtains closed, using fans for personal cooling, limiting use of high-energy appliances during peak hours, regularly replacing HVAC filters, and investing in smart thermostats or energy-efficient appliances when possible.
According to the ACC, several utility providers and assistance organizations offer relief programs for qualifying customers. Those include Arizona Public Service’s Energy Support Program (ESP) and Crisis Bill Assistance (CBA) resources, Salt River Project assistance programs, Tucson Electric Power’s Power AZ program, UniSource Energy Services payment assistance, and programs administered through Wildfire and community action agencies.
APS is currently seeking a residential rate increase from the ACC of approximately 14.5%. Residents packed a recent hearing to oppose the proposal, while Administrative Law Judge Charles Hains began reviewing testimony and evidence that will inform a recommended rate decision for commissioners to consider.
In a statement to the outlet, APS defended the increase, stating that “… over the past five years, APS has experienced rapidly rising costs of equipment needed to deliver power to customers. One example is transformer costs which are, on average, 49–90% higher now than when our rates were last set.”
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 | 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 Matthew Holloway | Mar 12, 2026 | News
By Matthew Holloway |
The Arizona Corporation Commission (ACC) voted unanimously to repeal the state’s Renewable Energy Standard and Tariff (REST) rules during its March 4 open meeting, ending a regulatory framework that has governed renewable energy requirements for nearly two decades.
The REST rules, first adopted by the commission in 2006, required regulated electric utilities to obtain a specified portion of their retail electricity sales from renewable resources. The standard began at 1.25 percent in 2006 and increased incrementally until reaching 15 percent after 2024, with a portion of the requirement reserved for distributed resources such as rooftop solar.
According to the commission, the repeal finalizes a rulemaking process that began in January 2024 under the commission’s rulemaking docket RE-00000A-24-0026.
ACC Chairman Nick Myers joined the other commissioners in the unanimous 5-0 vote. In a statement following the decision, Myers said the mandates were no longer aligned with current conditions in Arizona’s electricity market.
Commission officials said the REST framework achieved its original goal of expanding renewable energy generation in Arizona. The state’s major regulated utilities, Arizona Public Service (APS), Tucson Electric Power (TEP), and UNS Electric (UNSE), have met or exceeded the renewable energy targets established under the rules.
Myers added, “The reality is that the renewable energy landscape in Arizona has changed dramatically in the past 20 years.”
Since the program began, the utilities have collected more than $2.3 billion in REST surcharges from customers to fund renewable programs and incentives, according to the commission. More than $779 million of that amount was distributed as incentives for renewable energy programs approved by the ACC. According to the commission, that amount does not include “above-market amounts paid out to rooftop solar customers under net metering and the current RCP approach.”
Commissioners also cited long-term power contracts entered into under the mandate as contributing to costs borne by ratepayers. One example highlighted by the commission involves a 30-year solar power agreement between APS and the Solana Generating Station, under which APS customers have paid approximately $274.3 million above market prices for power to date.
“The Solana plant is basically providing energy at 15 cents a kilowatt-hour when the rest of solar these days are around 2 to 2 1/2 cents a kilowatt-hour,” Myers said during the meeting.
Under the REST rules, utilities were required to obtain at least 15 percent of their electricity from renewable sources by 2025, with 30 percent of that renewable requirement coming from distributed sources such as rooftop solar.
Myers said utilities will continue to procure energy resources through competitive procurement processes designed to identify cost-effective and reliable power generation options.
Arizona Attorney General Kris Mayes released a statement in September and sent a letter to the commission opposing the repeal. During her tenure on the commission from 2003-2010, Mayes, then holding office as a Republican, participated in the adoption of the REST Rules and Arizona’s Electric Energy Efficiency Standard Rules (EEES Rules).
The Arizona Corporation Commission regulates the state’s investor-owned utilities and has authority over energy policy decisions such as renewable energy standards and utility rate structures.
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 Staff Reporter | Mar 8, 2026 | News
By Staff Reporter |
A retirement community in Eloy had its water rates raised significantly through a recent Arizona Corporation Commission (ACC) vote.
The ACC approved the rate increases narrowly, 3-2, during its meeting on Wednesday. Commissioners Kevin Thompson and Lea Marquez Peterson voted against the rate increases.
Marquez Peterson said the utility companies should have done more to conduct public outreach prior to engaging in the rate increase process.
“We received many public comments concerning the dramatic rate increase though an increase was certainly expected from a utility who hadn’t filed a rate case in over 25 years. I believe that more could have been done to promote gradualism in the sewer rate case,” said Marquez Peterson.
Picacho Water and Picacho Sewer Company serve the retirement community Robson Ranch, located south of Casa Grande. The community has historically enjoyed low water and sewer rates due mainly to subsidization from the developer behind the community, Robson Companies. The developer absorbed the cost of increased expenses rather than pass them onto the residents.
The rate increases would result in increases of just shy of $7 for water and $65 for sewer, for a combined increase of about $76. No rate changes have occurred since the 1990s. For years, residents paid an average of about $30 per month for water and $42 per month for sewer services.
ACC declined to impose a phased increase of rates.
Commissioner Thompson said that was where the rate increase plan lost his vote.
“For decades, the developer chose to operate the water utility at a loss. No one disputes that the new owner is entitled to recover lost revenues and earn a reasonable profit on those investments,” said Thompson. “But rate increases should adhere to principles of gradualism, and as a regulator, I felt I had a duty to advocate for a resolution that strikes an appropriate balance between all parties and not subject these ratepayers to the consequences of business decisions that were no fault of their own.”
The decision to adjust utility rates after nearly 30 years came after another company, JW Water, acquired both companies from Robson Companies in 2024.
Robson Ranch residents spoke out against the rate increases during Wednesday’s meeting. They accused JW Water of seeking to maximize shareholder return.
The residents also blamed Robson Companies for covering increased expenses rather than passing the cost along to the customers. Residents said they had no knowledge their rates were being subsidized all those years; they said low rates were marketed as a perk of buying within the community.
Jay Shapiro, speaking on behalf of Picacho Water and Picacho Sewer during the meeting, said the rate case was “difficult for everybody involved” and that no one would be happy with the final results.
Shapiro denied exploitation of customers. He argued the longstanding rates were no longer recovering the cost of service. He said the rates were “just and reasonable,” and not a result of “price gouging” to benefit foreign investors. Shapiro accused critics of the rate increases of conducting a smear campaign.
“Rate shock was inevitable — rate shock sure sucks,” said Shapiro. “It’s an unintended consequence of some rate filings.”
Chairman Nick Myers agreed with JW Water that these rate increases were a necessity for services provided, not a means of making up for lost profits.
“Though I personally would prefer not to approve rate increases, we have a constitutional duty as Commissioners to set just and reasonable rates,” said Myers.
Vice Chair Rachel Walden concurred.
“JW Water is NOT recovering revenue losses over the course of the past 25+ years, nor are they recovering the purchase price of the utilities,” said Walden. “This rate case is ONLY about setting rates to cover the cost of service. I put forth a verbal amendment that was supported in full to ensure that future growth will pay for itself.”
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by Matthew Holloway | Aug 15, 2025 | News
By Matthew Holloway |
A coalition of Arizona businesses from across the state released a statement expressing strong support for a newly announced project by Energy Transfer LP. The project will bring an interstate natural gas pipeline into the state from West Texas, constructed, owned, and operated by Transwestern Pipeline Company. It will power Arizona Public Service (APS), Salt River Project (SRP), Tucson Electric Power (TEP), Unisource Energy Services, and other utilities that supply energy to Arizona’s homes and businesses.
The new 42-inch pipeline, kept pressurized by nine compression stations, will span 516 miles across Texas, New Mexico, and Arizona. It will carry 1.5 billion cubic feet per day of natural gas. It is expected to come online in 2029.
AZBigMedia reported that the project is expected to cost approximately $5.3 billion, including about $600 million of Allowance for Funds Used During Construction (AFUDC)
“With this new natural gas pipeline, Arizona will be well positioned to have reliable baseload power to meet the growing demands of our economy,” said Arizona Corporation Commissioner Rachel Walden in a statement. “I’m pleased to see that the City of Mesa is participating in this project, serving as an example of Arizona’s ability to attract new commerce with affordable power while innovating in water conservation.”
In a post to X, Commissioner Nick Myers noted that this annoucement came alongside the recent accouncement that APS is rolling back its Biden-era zero-carbon goals. He said, “On the same day it was announced that APS is backing off their Green New Deal style policies, further proof that this commission has not been friendly to those policies, it was announced that Transwestern will be putting in another natural gas pipeline into Arizona. Energy dominance at its best!”
According to the Arizona Chamber of Commerce and Industry, “The project will help ensure that Arizona remains competitive with other high-growth states by providing the reliable, cost-effective energy necessary for economic development and job creation, particularly as energy demand is projected to soar.”
The Chamber added in a press release, “Natural gas is a cornerstone of Arizona’s energy system, generating 45% of the state’s electricity. It plays a critical role in supporting Arizona’s modern electricity grid, helping utilities meet peak demand during extreme summer weather and enabling the deployment of renewable energy resources like solar and wind year-round. Additionally, more than 1.4 million residential, commercial, and industrial customers count on the natural gas distribution system for their home comfort and business needs, including in sectors like semiconductors, EV batteries, and other advanced manufacturing.”
APS director of Resource Integration and Fuels Jill Freret told KJZZ, “This expansion for APS and for some of our peer utilities really allows us to bring in more natural gas to fuel existing facilities with growing demand and position us to have additional gas on our system out into the future.” Freret observed that the energy demand of APS is expected to increase by over 60% in the next 13 years.
The benefits of the project are not limited to the energy industry, however. Patrick Bray, Executive Vice President of Arizona Farm and Ranch Group, explained, “Access to natural gas supply is essential for our farmers and ranchers to power critical operations. This pipeline is a smart investment that will ensure the continued success and competitiveness of Arizona’s agriculture industry, allowing us to produce the food that sustains our communities and contributes significantly to our economy.”
In addition to dozens of Chambers of Commerce across the state, from Flagstaff to Sahuarita, industry organizations including the Arizona Cattle Feeders Association, Arizona Lodging & Tourism Association, Arizona Manufacturers Council, Arizona Multi-housing Association, Arizona Restaurant Association, Arizona Rock Product Association, Arizona Small Business Association, Arizona Trucking Association, and the United Dairymen of Arizona, all expressed support for the pipeline.
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.
