Gov. Katie Hobbs and Attorney General Kris Mayes both announced efforts on Monday to combat rising energy prices.
Hobbs signed an executive order that she says is designed to streamline the development of new electricity generating infrastructure across Arizona.
“We have incredible potential to deliver affordable energy to every business and family who needs it. We just need to unleash it,” she said in a statement.
Hobbs tasked her Office of Resiliency with working with other state agencies to identify federal funds that can be used to reduce costs for Arizona and helping “eligible solar, wind, storage, geothermal and nuclear” begin development as soon as possible in order to take advantage of federal tax credits.
Several existing federal programs, including tax credits for solar development, are expiring soon after they were canceled under the federal tax cut and spending plan signed into law by President Donald Trump earlier this year.
The governor also directed all state agencies to develop plans by 2027 to reduce their energy consumption by 5%.
The governor also directed some of her agencies to begin work to cut red tape now.
The order directs the Arizona State Land Department to come up with ways to “streamline and expedite” the process to approve land leases for energy infrastructure.
The governor also directed the Department of Transportation to identify opportunities to locate new transmission lines on state rights-of-way, which include lands controlled by the state along roadways.
“We’re going to cut away the bureaucracy and red tape that too often holds our economy back and increase costs,” Hobbs said.
Hobbs' order comes a month after Sen. Ruben Gallego told Phoenix business leaders that the federal government should take similar measures to encourage an increase in energy production, specifically around the development of small modular nuclear reactors.
“We are so behind the eight ball in this country that we haven't even changed the permitting around those types of reactors,” he said.
That has led to a lack of confidence from the financial sector and utilities, who don’t want to invest in the new technology without permitting reform in place, he said.
“Until we build the confidence around it — through both the financing side, the lending side for the financing side, the permitting side – we're going to be, you know, falling behind these other countries,” Gallego said.
Hobbs’ order includes the creation of a new task force that will look at how Arizona can “cut red tape” and expedite the development of electricity projects on state land while figuring out how to support energy intensive industries like data centers without impacting the average utility customer. The task force will also look into new technologies, including geothermal and “advanced nuclear generation,” which includes small modular reactors.
While Hobbs focuses on future energy development, Mayes announced she will officially oppose Arizona Public Service’s request to raise rates by 14% next year.
According to a recent procedural order, the Arizona Corporation Commission granted Mayes’ request to intervene in the case. The commission also allowed several interest groups to intervene in the case, including Vote Solar, Arizona Public Interest Research Group Education Fund and Wildfire.
“Giving APS another rate increase, after making more than $600 million in net income last year, is outrageous and I will not stand for it,” Mayes, a former corporation commissioner, said in a statement. “APS has a monopoly and should not be allowed to exploit that monopoly on the backs of Arizona consumers.”
APS officials have said its rates have not kept pace with what it costs to operate a reliable, resilient energy grid despite an 8% increase approved by the commission last year.
