Arizona Utility Drops 2050 Zero Emissions Goal
Arizona Public Services (APS), the largest utility in Arizona, announced on Wednesday that it is retracting its commitment to achieving zero emissions by 2050.
Pinnacle West, the parent company of APS, stated during a quarterly revenue call that the decision stems from concerns that relying solely on green energy could jeopardize the “reliability and affordability” of the electricity supply. Instead, APS has decided to aim for carbon neutrality by 2050. The original goal could pose serious risks to the power grid as the demand for energy continues to grow in Arizona.
“Our mission is to ensure our customers receive service at the lowest possible cost. To achieve this, we need to incorporate the most reliable and cost-effective resources available to meet Arizona’s rapidly increasing energy needs,” said a company spokesperson. “While clean energy is significant for us, we prioritize a balanced energy mix that ensures reliability and affordability.”
As part of this policy shift, APS can continue using fossil fuels for electricity generation, provided it offsets the emissions produced. The utility is also planning to investigate natural gas opportunities, citing that “intermittent resources such as solar and wind are not enough to meet customer needs.”
Arizona has been pursuing several green energy initiatives, and Governor Katie Hobbs has expressed a commitment to fostering a clean energy economy for the future.
Currently, Arizona’s energy costs are already relatively high, and projections indicate they may rise further as more power-intensive data centers are developed in the state. Reports suggest that these facilities could increase the pressure on Arizona’s energy systems, particularly during the hot summer months.
This surge in energy demand and rising electricity costs are trends observed nationwide, fueled in part by the growth of artificial intelligence and a wave of reindustrialization in the U.S. Recently, major oil companies have also adjusted their climate targets to more attainable levels.
APS confirmed the revisions to its emissions goals during Wednesday’s revenue call.