Arizona Leaders Take Action to Address Energy Challenges
Arizona’s state officials are ramping up efforts to tackle the persistent issue of rising energy costs. In a notable move, Gov. Katie Hobbs has signed an executive order aimed at enhancing the state’s energy infrastructure, while Attorney General Kris Mayes is taking a stand against a proposed rate increase by Arizona Public Service (APS).
Gov. Hobbs is focusing on the development of new electricity-generating facilities across Arizona. She emphasized the state’s potential in delivering affordable energy, stating, “We have incredible potential to deliver affordable energy to every business and family who needs it. We just need to unleash it.” To achieve this, Hobbs has instructed her Office of Resiliency to collaborate with various state agencies to identify federal funding opportunities that can lower costs for residents and expedite the development of solar, wind, storage, geothermal, and nuclear projects.
Hobbs’ executive order also includes a directive for all state agencies to target a 5% reduction in energy consumption by 2027. Efforts to streamline processes are already underway, with the Arizona State Land Department tasked with simplifying land lease approvals for energy infrastructure. Additionally, the Department of Transportation has been directed to explore the possibility of placing new transmission lines along state rights-of-way.
These efforts come in response to similar calls from federal officials. Last month, Sen. Ruben Gallego advocated for federal measures to enhance energy production, especially focusing on small modular nuclear reactors. Gallego pointed out the need for permitting reforms to instill confidence in investors and utilities, noting, “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.”
To further bolster these initiatives, Hobbs’ order establishes a task force dedicated to reducing bureaucratic obstacles and accelerating electricity project development on state land. This task force will also explore innovative technologies, including geothermal and advanced nuclear generation.
While Hobbs is focused on future developments, Attorney General Kris Mayes is addressing immediate concerns. She has formally opposed APS’s planned 14% rate hike for next year. The Arizona Corporation Commission has permitted Mayes and several interest groups, such as Vote Solar and the Arizona Public Interest Research Group Education Fund, to intervene in the case. Mayes, who previously served as a corporation commissioner, expressed her disapproval by stating, “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.”
Despite an 8% rate increase approved last year, APS officials argue that current rates do not reflect the expenses required to maintain a reliable energy grid. The ongoing debate highlights the balancing act between ensuring affordable energy for consumers and maintaining infrastructure resilience.
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