Arizona Democrats are criticizing Arizona Public Service for reneging on a commitment to transition to 100% clean energy over the next three decades, claiming the state’s largest electric utility misled lawmakers and Gov. Katie Hobbs about its plans.
Earlier this week, APS CEO Ted Geisler informed stockholders that the utility was getting rid of the clean energy commitments implemented by his predecessor just five years ago, including a goal to reach 100% clean energy by 2050.
The move drew swift criticism from Democrats, environmental groups and renewable energy advocates around the state.
“This decision sets us back. It makes our air dirtier, hurts our growing clean energy economy, and forfeits the cost savings of renewable options,” Hobbs said on social media.
Some Republican officials praised the shift away from clean energy goals.
That includes Arizona Corporation Commission Chairman Kevin Thompson, who leads the government body that regulates APS and other utilities. He echoed statements by APS officials, who said the change was needed to ensure the reliability of Arizona’s electric grid as the population grows.
“APS is looking at the bigger picture of ‘how do we ensure that we can keep the air conditioning on when it's 120 outside?’” he said.
Critics have rejected that argument, saying an increase in clean and renewable energies can be part of a reliable grid.
And Sen. Priya Sundareshan (D-Tucson), an environmental attorney and the top Democrat in the Arizona Senate, said the move stands in stark contrast to the message APS itself sent to lawmakers last session when it lobbied for a new state law giving utilities more financial flexibility to manage their debt.
“Securitization is a tool that has been used in other states and has been championed in other states by clean energy advocates as a way to help utilities transition away from fossil fuel generation and into more clean energy,” Sundareshan said, referring to House Bill 2679, which APS helped craft.
APS representatives argued the legislation gives utilities a tool to divest from inefficient power plants while giving them the financial flexibility to invest in more efficient alternatives.
“That's certainly how the utilities, especially APS, who was very heavily behind the push for the securitization bill, that's how they were characterizing the securitization bill — that it would be bringing this tool that helps with the clean energy transition,” Sundareshan said.
An APS spokesman said the utility remains committed to lowering carbon emissions while ensuring reliability and affordability for ratepayers.
“While much has changed in the industry and in Arizona over the last several years, that dedicated focus has not,” spokesman Mike Philipsen wrote in an email. “More people and businesses are moving to Arizona at record levels and our customers count on us for power every day. It would be irresponsible if we saw the challenges ahead and failed to plan for them.”
Philipsen said APS shifted to a new goal to be “carbon neutral” by 2050. He said that aligns with goals set by other Arizona utilities.
Unlike the commitment to eliminate its carbon emissions by using 100% clean energy, a carbon-neutral pledge means a company will attempt to offset its emissions.
“To be clear, APS remains committed to clean-energy resources that are cost-competitive and help ensure reliable service for our customers,” Philipsen wrote. “Clean-energy resources — such as solar paired with battery-energy storage — that provide a ‘best-fit, least-cost’ solution to serving our customers (as demonstrated through our competitive all-source request for proposal process) will continue to be a key part of how we provide reliable and affordable service to our customers.”
HB 2679 passed through the Legislature with some bipartisan support and was signed into law by Hobbs, the Democratic governor, despite opposition from some prominent environmental and renewable energy advocates.
“We are extremely disappointed in the Governor’s action today. HB2679 will help advance the Trump coal agenda, keeping dirty coal plants operating longer, and benefitting utility shareholders to the detriment of ratepayers, our air, our water, and our health,” Sandy Bahr, director of the Sierra Club's Grand Canyon Chapter, said after the signing.
As it got rid of its clean energy goals, APS also confirmed it will keep its Four Corners coal plant, originally slated to close in 2031, online as late as 2038.
Despite some bipartisan support, HB 2679 received no Democratic votes in the Senate “because it was way too broad, not limited to clean energy generation or retiring old fossil fuel generation assets,” Sundareshan said.
When she signed the bill, Hobbs said she heard concerns from clean energy advocates who opposed the original version of the bill, “and I made it better.”
"Because of this bill, Arizona families will save money and we will help create more jobs in a clean energy economy that, in just the last few years, has brought nearly $18 billion in investments to our state and created over 18,000 quality jobs,” Hobbs said at the time.
Sundareshan said Democrats who backed the bill were duped.
“The message that the utilities had been pushing was, ‘Don't worry about it. We've still got our clean energy goals. We'll use this tool to help increase our clean energy,’” Sundareshan said. “Unfortunately, I think they were successful in making some Democratic legislators and the governor even believe their empty promises.”
Hobbs' office repeated its criticism of APS for getting rid of its zero-carbon goals but defended the governor’s decision to sign HB 2679.
“Securitization must remain a tool in our clean energy economy toolbox,” spokesman Christian Slater said. “The securitization bill signed by Governor Hobbs still helps Arizona build more clean energy while guaranteeing lower costs and delivering even more energy. It has nothing to do with this latest announcement.”
-
The power grid across Western states is under growing strain. Now, a new report argues the region's governments and utilities need to work together to keep the lights on and costs down. -
TEP’s proposed hike would see rates increase this fall. According to the utility, the average Tucson household would pay $16 more each month — which it argues is needed to help cover rising costs and support recent investments. -
The seven Colorado River basin states have less than a week until a deadline to put forward a plan for how to divide up water in the over-allocated river. -
The states with Democratic AGs argue that federal agencies are side-stepping important environmental laws to carry out the executive order. -
The bill, approved by the House Natural Resources, Energy and Water Committee, would prevent county supervisors from being able to regulate small modular reactors in rural Arizona, if they have met federal guidelines.
