Across the nation, those paying energy bills are facing a continuous rise in electricity costs. If consumers thought last year’s increases were alarming, they might be shocked to hear that utility companies are seeking a staggering $29 billion rate hike for 2025—more than double what was approved the previous year.
This trend is evident in Arizona as well.
Arizona Attorney General Chris Mays has positioned herself as a protector of fee payers. Recently, proposals for another round of hikes emerged, with requests for a 14% increase from both Arizona Public Service (APS) and Tucson Electric Power (TEP). Mays responded with a press release declaring her strong opposition to these demands, stating that “Arizona residents are struggling to keep up with their ever-growing electricity bills.”
However, Mays doesn’t have extensive experience with the Arizona Corporation Commission (ACC). She seems to believe that her time on the committee in the 2000s equips her to combat the ongoing series of double-digit rate increases from these utilities. Unfortunately for consumers, Mays’ involvement may just be adding fuel to an already intense debate on net zero initiatives within the commission.
Interestingly, Mays’ past contributions laid the groundwork for the rising costs that residents in Arizona are now facing. There’s a certain irony in her recent foray into the rate hike discussions; it underscores some alarming parallels between the committee she was part of in 2006 and the current one.
I suppose it’s worth noting that Chris Mays was initially appointed as a Republican during Janet Napolitano’s Democratic administration. Even though she was part of an all-Democratic committee, Mays emerged as a lead advocate for the original Green New Deal initiatives.
The early mission set forth involved Renewable Energy Standards and Tariffs (REST), mandating that 15% of all energy generation come from renewable sources by 2025.
To cover costs associated with these REST rules, utilities sought cost recovery from consumers, leading to projects that have already cost hundreds of millions. A rate hike from APS in 2012 was implemented to address the financial strain of integrating intermittent renewable sources into the grid alongside solar facilities and battery storage projects.
By 2019, the financial toll of Mays’ rules had exceeded a billion dollars, with rate hikes tied to fixed fee increases.
After departing from the committee, she took on the role of a lobbyist consultant for pro-Green New Deal efforts, even chairing the “Healthy Arizona Clean Energy” campaign in 2017. This initiative was backed by California billionaire Tom Steyer, who aimed to insert clean energy mandates into Arizona’s constitution.
You’d think that after two decades spent advocating for renewable energy obligations, Mays would be pleased to learn that both APS and TEP are finally aligning with her green agenda. They have pledged to achieve net zero by 2050, an initiative Mays originally championed—a carbon-free grid primarily powered by wind and solar energy to fuel air conditioning systems during the sweltering summers.
One might argue, though, that Mays should be thankful to the current Republican-controlled commission for ramping up her ambitious energy commitments.
Just last year, the ACC approved Integrated Resource Plans proposed by APS and TEP, enhancing her original REST rules and embarking on a path to phase out remaining coal production by 2031, with future energy sources primarily from renewables.
However, this “green transformation” comes at a cost, and it seems that Mays is now feigning outrage at the rate hikes essential for funding that initiative. Her strategy appears to involve criticizing the regulatory committee and utilities, even while there are predictions indicating costs could reach $42 billion for consumers because of her initial plans. The irony, of course, is striking: observing someone who played a pivotal role in these decisions now expressing shock at the financial fallout.
