AZFEC: SRP’s Plan To Trade Coal Generation For Gas Will Only Accelerate Green Scam Rate Hikes

AZFEC: SRP’s Plan To Trade Coal Generation For Gas Will Only Accelerate Green Scam Rate Hikes

By the Arizona Free Enterprise Club |

Two months ago, Arizona’s monopoly utilities and their political allies were patting themselves on the back about the expansion and development of a couple of new natural gas projects that they claim will help the Grand Canyon state keep up with growing energy demand.  

On the surface, an announcement of new projects like the Transwestern Expansion should have been great news for Arizona ratepayers. Our state is in desperate need of more reliable, dispatchable power; especially after years of reckless green new deal investments that have raised costs and reduced reliability.  

But sadly, it turns out that SRP’s enthusiasm for gas isn’t about expanding baseload power on the grid after all. The new gas capacity is instead being used to replace existing coal power generation that SRP has pledged to shut down in Arizona. All to meet ridiculous self-imposed carbon reduction goals and climate commitments that should have been junked a long time ago…

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AZFEC: Repealing REST Rules Won’t Move Needle On Ending Green Scam In Arizona

AZFEC: Repealing REST Rules Won’t Move Needle On Ending Green Scam In Arizona

By the Arizona Free Enterprise Club |

The Green New Scam got its start in Arizona two decades ago when a 5-0 Republican Commission (including then Republican Kris Mayes) adopted the Renewable Energy Standard and Tarriff Rules, or the REST Rules. Among other things, most significantly it ushered in the first “renewable” mandates in our state, forcing utilities to obtain at least 15% of their power from “renewables.” Ratepayers have been paying the costs (over $2 billion) ever since. 

The REST Rules had a target date: 2025. Well, it’s now 2025, and the utilities have not only met that mandate, but they have also voluntarily exceeded it. Now our current 5-0 Republican Commission has started the process of repealing them. 

Repealing the REST Rules is important, but the targets have already been met, and the price has already been paid. Substantively, the repeal won’t really affect ratepayers all that much. Why? Because mandate or no mandate, our utilities are completely committed to going “Net Zero” by 2050, and so far, they’ve been allowed to do it…

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Walden Secures Unanimous Support To Bolster Oversight Of State Utilities

Walden Secures Unanimous Support To Bolster Oversight Of State Utilities

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.

DAVID WINSTANLEY: Conservatives Need To Pay Attention To SRP Elections

DAVID WINSTANLEY: Conservatives Need To Pay Attention To SRP Elections

By David Winstanley |

Sandra D. Kennedy, with help and funding from Soros and company, has made it clear that she will bring the Green New Deal to SRP whether customers care or not.

You remember Sandra Kennedy, right? Kennedy tried to pass a Green New Deal regulatory mandate while serving at the Corporation Commission, but it was thankfully defeated by the other Republican Commissioners in 2022. Now, we conservatives need to pay attention again because with the SRP Board elections coming in April, there is a push to flip the board by Sandra Kennedy and her supporters.

Currently, the SRP Board is nearly split between conservatives and Green New Dealers, but the left is pushing hard to flip board members at the SRP election in April. We can’t let that happen.

It is important to understand that SRP does NOT fall under Arizona Corporation Commission jurisdiction, the entity that regulates the other Arizona electric utilities. The Salt River Project Agricultural Improvement and Power District (the District) was officially organized in 1937, formalizing its dual role in managing water resources and providing electricity. This formation was driven by a need to expand the utility’s role in power generation to support the growing population and industries of central Arizona at that time. SRP was formed according to ARS Sec: 48-2301-48-2475, which permits self-governance by a board elected from its members and elections that are completely independent from the regular elections held by city, county, and state.

The next election of Board members (a complex process) will be held April 7, 2026, and all eligible SRP voters must be registered with SRP no later than March 9, 2026. This registration and voting is completely independent of Maricopa County and the Arizona Secretary of State. Maricopa County residents can register to vote here (though you may find that many of you will not be eligible to vote).

Another important point to explore is why all Maricopa County residents who receive electricity from SRP cannot have a vote in who decides on costs of decarbonization, new power plants, and rates to fund these. I have lived in Mesa and Gilbert for the past 45 years and owned 4 houses in that time, but I could only vote in SRP elections at one of the 4 houses, why?

The answer is because the SRP District voting boundaries have never changed since it was incorporated in 1937 even though SRP has expanded service well outside the district’s original boundaries (see here).

The result is that more than 250,000 Maricopa and Pinal County residents have no say in how SRP spends its earnings or sets rates for us customers. This wide swath of Maricopa citizens cannot vote in SRP District elections, and that is just patently unfair!

It is well past time for SRP and the Arizona Legislature to update SRP Governance to include all ratepayers—or give the Corporation Commission the authority to regulate SRP. In the meantime, please do something NOW. Register to vote if you are eligible, and TALK to everyone you know about voting!

David Winstanley is a retired Director of Engineering at Honeywell Aerospace, former Chair of LD15 Republicans, and a conservative activist for local issues in the East Valley.

Coalition Of Arizona Businesses Hails Massive Natural Gas Pipeline Project

Coalition Of Arizona Businesses Hails Massive Natural Gas Pipeline Project

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.