In a surprising turn of events, Arizona Public Service (APS) has decided to abandon its ambitious plan to achieve 100% clean energy by 2050, a move that has sparked intense debate across the state. The decision has drawn sharp criticism from Democrats and environmental advocates, while some Republicans have welcomed the shift.
Earlier this week, APS CEO Ted Geisler announced to shareholders the reversal of commitments made by his predecessor, specifically the goal of reaching full reliance on clean energy within the next three decades.
“This decision sets us back. It makes our air dirtier, hurts our growing clean energy economy, and forfeits the cost savings of renewable options,” expressed Governor Katie Hobbs on social media, reflecting the concerns of many who oppose the policy change.
However, certain Republican officials, including Arizona Corporation Commission Chairman Kevin Thompson, have defended APS’s decision as a necessary step to ensure the reliability of the electric grid amid increasing demand. “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?’” Thompson said.
Critics argue that enhancing clean and renewable energy sources could still maintain grid reliability. Democratic Senator Priya Sundareshan emphasized that APS’s new direction contradicts their recent advocacy for House Bill 2679, which was designed to offer utilities financial flexibility for managing debt. The bill, supported by APS, was seen as a tool to aid the transition to cleaner energy sources.
Despite APS’s change in stance, spokesperson Mike Philipsen asserted the utility’s ongoing commitment to reducing carbon emissions while maintaining reliability and affordability for customers. “While much has changed in the industry and in Arizona over the last several years, that dedicated focus has not,” Philipsen stated. He highlighted APS’s new aim to achieve “carbon neutrality” by 2050, which involves offsetting emissions rather than eliminating them entirely.
Philipsen further assured that clean-energy solutions, such as solar energy paired with battery storage, would continue to play a significant role in APS’s strategy to provide reliable service. “Clean-energy resources — such as solar paired with battery-energy storage — that provide a ‘best-fit, least-cost’ solution to serving our customers… will continue to be a key part of how we provide reliable and affordable service to our customers,” he wrote.
Despite the controversy, HB 2679 garnered bipartisan support in the Legislature and was signed into law by Governor Hobbs. However, prominent environmental advocates, like Sandy Bahr of the Sierra Club’s Grand Canyon Chapter, have voiced strong opposition. “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,” Bahr stated.
As part of its revised strategy, APS also confirmed that the Four Corners coal plant, initially set to close in 2031, will remain operational until at least 2038. Governor Hobbs defended her decision to sign HB 2679, stating that it enhances job creation in the clean energy sector, which has brought significant investment and employment to Arizona.
Governor Hobbs’s office reiterated its criticism of APS for withdrawing its zero-carbon goals while maintaining the importance of the securitization bill as a tool in fostering a clean energy economy. “Securitization must remain a tool in our clean energy economy toolbox,” spokesman Christian Slater noted, emphasizing that the bill still supports the development of clean energy in Arizona.
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