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 Ethan Faverino | Jan 12, 2026 | Education, News
By Ethan Faverino |
Arizona State Superintendent of Public Instruction Tom Horne hailed a unanimous decision by the Arizona Court of Appeals that reinstates a lawsuit against the Mesa Unified School District (MPS), reinforcing parental rights in cases involving children’s gender identity.
The ruling allows parents to pursue legal action against public schools that withhold critical information about a child’s intent to identify as a gender different from their biological sex.
“Schools are not substitutes for parents, and they have zero right to withhold information that parents are entitled to know,” said Horne. “Arizona law is very clear on the right of parents, and they should be informed when a child expresses a desire to be identified as a sex other than the one to which they were born. The Court of Appeals was unanimous in their decision allowing a lawsuit filed against the Mesa school district by a parent to proceed. I am very pleased that the Court made the correct ruling to defend parental rights and remind schools they should follow the law or risk legal action.”
The case is of a parent whose daughter, referred to as “Megan” (a pseudonym), was a student at an MPS junior high school during the 2022-23 school year. According to court documents, MPS had implemented “Guidelines for Support of Transgender and Gender Nonconforming Students” since at least 2015. These guidelines included procedures for school staff to support students asserting a gender identity different from their sex assigned at birth, such as updating their name or pronouns in internal systems without necessarily notifying parents.
In “Megan’s” situation, school personnel allowed her to use the male name “Michael” among teachers and students, while deliberately avoiding updates to the district’s electronic system to prevent automatic parental alerts.
The guidelines instructed staff not to disclose a student’s transgender status or gender nonconforming presentation without the student’s consent, even to parents.
This included options for students to specify whether their identity could be shared with school leadership, teachers, or peers—but parental notification was not mandated unless a change was requested in the school’s internal system.
“Megan’s” parents discovered the name change in October 2022 and confronted the school officials. In a December 2022 meeting with the principal, they learned that the school had intentionally bypassed the notification system to keep the matter secret.
The principal admitted that even if the parents had requested updates on name changes, pronouns, or gender-related issues, MPS policy prohibited informing parents.
The parents demanded that all staff cease using “Michael” and revert to Megan’s given name, but at a February 2023 meeting with teachers, all but one continued using the preferred name.
The parents further claimed that the school’s actions encouraged Megan to lie to her parents, straining the family relationship and delaying necessary mental health support.
Once her parents were fully informed, Megan was able to speak openly with them and a mental health counselor. Within a month, her issues were resolved, and she became comfortable presenting herself as female and using her given name. The lawsuit, joined by MPS board member Rachel Walden, alleges violations of Arizona’s Parents’ Bill of Rights, which protects parents’ authority over their children’s upbringing, education, health care, and mental health. It also cites prohibitions against public employees compelling children to withhold information from parents, requirements for advance notification on sexuality-related instruction, and bans on mental health screening without consent.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Dec 7, 2025 | News
By Matthew Holloway |
The Arizona Corporation Commission (ACC) voted 4-1 on Wednesday to approve a legally binding 10-year Energy Supply Agreement (ESA) between Tucson Electric Power (TEP) and Humphrey’s Peak Power LLC to power a planned data center campus proposed for Pima County.
The Commission underscored that its review of the agreement was limited solely to ensuring statutory compliance and safeguarding ratepayers’ interests. Regulators noted they do not hold jurisdiction over the nature or approval of the associated data center project itself, only the energy contract enabling its power supply.
As reported by the Arizona Capitol Times, the ACC meeting on December 3rd was contentious, with almost two dozen members of the public calling on the Commissioners to vote against the agreement in over three hours of discussion. Commissioner Rachel Walden was the only dissenting vote.
“I’m still wary about whether or not there is a data center at the end of this,” Walden said, according to the Times.
TEP, a regulated public utility, is legally obligated to serve all eligible customers within its designated service territory without discrimination and may not refuse service to applicants who meet interconnection and regulatory requirements, the ACC explained in a press release. Commissioners reiterated that ESA terms must provide protections not only for the contracting parties but also for the broader TEP ratepayer base.
During the meeting, TEP executives said that the data center customer will ultimately decrease other customers’ rates, arguing the facility will make a larger revenue contribution than the actual cost of serving it, according to the Times.
Erik Bakken, senior vice president and chief administrative officer at TEP, explained, “We believe that we’ve got the gold standard special contract for a data center with existing resources and existing capacity that’s available.”
In a press release, TEP said its usage-based rates are set by dividing the total revenue the utility is allowed to collect by projected energy sales. Bringing in a large new user like a data center increases overall sales, the company argued, which allows per-kilowatt-hour charges for other customers to move lower than they otherwise would be.
In comments to 13 News, Pima County Supervisor Matt Heinz told the outlet that Amazon Web Services (AWS) will no longer be the end user for the data center referred to as “Project Blue,” citing multiple sources. He stated that there are now as many as seven or eight different potential end users. The outlet reported Tuesday that Facebook’s parent company, Meta, could potentially be the new suitor for Beale Infrastructure’s project based on comments from Heinz and Tucson City Councilman Paul Cunningham.
Arizona Capitol Times reported that this shift was owed to the project switching from water-cooling to air-cooling. Beale Infrastructure, the project developer, reportedly told commissioners that it is confident an end user will be found in time for the data center’s projected completion in 2027.
The data centers’ proposed 290-acre campus in Pima County, per Beale’s ESA application obtained by AZ Luminaria, has sparked a massive public debate in southern Arizona, including questions about grid load growth, long-term power procurement, water use before Beale’s conversion to air-cooling, and whether infrastructure planning is keeping pace with rapid expansion in energy-intensive industries.
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 | Oct 20, 2025 | News
By Matthew Holloway |
Arizona Corporation Commissioner (ACC) Rachel Walden brought an amendment during the commission’s Wednesday meeting to require detailed, extensive oversight over electrical utilities. Gaining unanimous approval in a 5-0 vote, Walden pushed to ensure Arizona’s electrical grid doesn’t become a ratepayer-funded venue for green projects.
At the October 15th open meeting, Walden pushed through an amendment demanding a more granular kind of report than the industry has provided for the past 26 years, exceeding what is required under Arizona Revised Statutes. Utilities like APS and SRP already owe the ACC their ten-year forecasts under state law, but Walden’s call for more detail: business confidential filings on line congestion, load-growth hotspots, and every grid-hardening method from reconductoring to storm-proofing—are a seismic departure from the more hands-off era that preceded.
“Finding the least cost, most reliable model includes transmission, not just electricity generation. None of the answers from our state utilities today inspired any confidence in me that these issues are a priority,” Commissioner Walden told the meeting. “I am not convinced that additional build out of renewables, while also having to add firm capacity as well as back up generation, is saving Arizonans money. I know that Arizonans are concerned with these issues, especially as we head into accelerated growth in our state. The Commissioners, as elected by the public, are faced with these questions and comments almost daily, and our actions are held accountable to the public.”
The move from Walden and the ACC seems to have been carefully timed. The Thirteenth Biennial Transmission Assessment projects a 3 percent annual growth surge through 2033, significantly faster than previous forecasts, reflecting Arizona’s population boom colliding with a deluge of intermittent ‘renewable’ sources. With solar and wind flooding the system, utilities are rerouting power across state lines, inviting operational headaches from California’s aggressive decarbonization push.
“Arizonans will not bear the costs and impacts of supporting neighboring states’ Green New Deal policies,” Walden said.
Walden’s amendment mandates confidential reports on congestion and bottlenecks, where new solar farms fail to provide a consistent load or data centers increase demand, along with projections to gauge how interconnection requests ripple through the system. Supporting Commissioner Lea Márquez-Peterson’s additions, Walden is requiring complete disclosures on enhancement efforts, ensuring the ACC can vet if utilities are truly fortifying the state’s transmission system.
With major data centers like Microsoft and Google cropping up in Maricopa County, pulling gigawatts from an already strained grid, peak demand strains are a genuine concern. The disastrous 2023 heat wave that had Texas utilities scrambling is fresh in mind. Arizona is hardly immune to such issues. As renewables providers require load balancing and battery installations, the costs are passed on to ratepayers, and Walden is questioning the utilities’ math.
“Ensuring our utilities have sufficient generation capacity to serve our customers during peak demand along with a reliable transmission grid to handle that capacity is paramount,” she said. “The Commission must ensure that any transmission or generation solutions to mitigate grid concerns, such as line congestion created by the interconnections from new generation sources, or offtakes from the grid by large customers such as data centers and hyperscalers, are borne by the creators of those grid concerns, not Arizona ratepayers.”
Walden pledged to scrutinize future Biennial Assessments and Integrated Resource Plans in a distinct pivot from the ACC’s historically more hands-off stance.
“I will be watching the Biennial Transmission Assessments and Integrated Resource Plans closely, and investigating these issues in all future rate cases,” Walden concluded.
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 | Sep 21, 2025 | News
By Matthew Holloway |
In a key vote on Wednesday, the Arizona Corporation Commission, led by Commissioner Rachel Walden, unanimously repealed the state’s Energy Efficiency (EE) and Demand Side Management (DSM) Rules. The regulations, now 15 years old, have been expired since 2020, and according to the board, have cost Arizona ratepayers more than $1 billion in additional surcharges since inception.
Both APS and TEP have exceeded the requirements, the board noted, with Commissioner Márquez Peterson explaining, “The current standard required the accumulated savings of 22% of retail sales by 2020. We’ve had(sic) reconfirmed that as of 2024, APS is at 26.2% and TEP is currently at 28.52%. Both utilities have exceeded the standard which is out of date.”
“I cast my vote to repeal the rules because the rules were not based on any cost-effectiveness tests, nor did they contain any other ratepayer protection requirements. The mandates instead passed all program costs in support of the few on the backs of all ratepayers, especially onto those who can least afford it—our low- and fixed-income ratepayers, and our hardworking Arizona families,” Commissioner Walden said in a statement Thursday.
“I fully support the use of EE mechanisms and DSM programs, which have demonstrated energy savings, especially during peak summer heating days when our energy needs have stressed the electrical grid. What I do not support is the cost shifts and economic burdens these mandated programs have created, costing ratepayers in excess of $1.1 billion.”
Commissioner René Lopez noted during the meeting that the rules “were written over a decade ago.” He added, “We’ve had a lot of changes in technology, and a lot of changes in demand are coming, It served its purpose, everyone has met the requirements, now it’s time for them to go away.”
The commission explained that the repeal of the rules does not eliminate the EE/DSM program; instead, Arizona utilities will now be required to use All-Source Requests for Proposals when they create plans to address forecasted energy demands, with EE and DSM programs continuing as two categories of solutions that can be proposed for the utility’s consideration.
“I urge technology stakeholders to continue to propose these types of solutions to offset utility generation needs,” Walden added. “The solutions must be cost-effective, and the Commission will continue to evaluate these programs on a case-by-case basis during rate cases. I recently offered an amendment to approve a Bring Your Own Device DSM program for APS customers that did not create a cost shift, and that amendment was adopted by majority vote by this Commission.”
Commissioner Márquez Peterson added in a statement, “As a Commissioner, I will continue to communicate to utilities my support for effective EE programs in future rate cases. These programs can save ratepayers on their electricity bills and help us ensure we have reliable energy during peak times of the day.”
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.
