Rising Energy Costs and Rate Hikes in Arizona

Across the nation, consumers have experienced a noticeable rise in their electricity costs. If folks thought last year’s increases were tough, they may be even more concerned to find out that utilities have proposed a staggering $29 billion rate hike for 2025, a significant jump compared to the previous year.

This trend is echoed in Arizona as well.

Arizona Attorney General Chris Mays has long positioned herself as an advocate for consumers. Recently, utilities presented another rate hike proposal at the Arizona Corporation Commission (ACC)—a 14% increase for both Arizona Public Service (APS) and Tucson Electric Power (TEP). Mays wasted no time in announcing her strong opposition, stating she would “vigorously oppose” these increases, asserting that “Arizona residents are struggling to keep up with their ever-growing electricity bills.”

While Mays may lack extensive experience with ACC matters, she seems to believe her previous service on the committee in the 2000s equips her to tackle what appears to be a never-ending series of steep rate hikes. Some might argue, however, that her involvement only adds fuel to the ongoing push for net-zero policies at the Public Corporation Commission.

Interestingly, Chris Mays was originally appointed by Republican Governor Janet Napolitano. Despite her Democratic affiliations, she became a staunch advocate for the Green New Deal back when she served on the committee in 2006.

That initial effort set the stage for the Renewable Energy Standards and Tariffs (REST) initiative, which mandated that 15% of all energy generation come from renewable sources by 2025.

To fund these REST initiatives, utilities have passed costs onto consumers for various projects amounting to hundreds of millions. In 2012, for instance, APS instituted another rate increase to cover expenses for solar facilities and grid upgrades necessitated by renewable energy integration.

Fast forward to 2019, and the financial implications of these mandates reached over a billion dollars. The costs were reflected as fixed fee increases for consumers.

After leaving the committee, Mays transitioned to consulting, working with groups that align with Green New Deal ideals. She even led the “Healthy Arizona Clean Energy” campaign, which aimed to embed clean energy mandates into state laws.

You’d think, after two decades of endorsing renewable energy mandates, Mays would be pleased that both APS and TEP have adopted her agenda, committing to achieve net-zero emissions by 2050. However, the reality is that this green agenda could rely heavily on wind and solar energy to meet future demands, particularly during peak summer months.

Moreover, the current Republican-controlled Commission seems to have doubled down on her previous commitments to radical energy policies.

Last year, the ACC approved Integrated Resource Plans from APS and TEP that accelerated her REST rules, with aims to eliminate remaining coal production by 2031 and achieve 90% energy production from renewables.

However, the costs associated with this green transition are coming due, and Mays seems to have developed an ironic stance against the very rate hikes needed to fund her initiatives. Reports suggest that an aggressive energy transition could cost consumers around $42 billion. It’s almost paradoxical to see someone who played a pivotal role in crafting these policies now feigning shock at their financial repercussions.