Arizona
Corporation
Commission
Stay informed about rate-pricing and energy choices
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The purpose of this website is to inform the public about the Arizona Corporation Commission, and give them the opportunity to become involved, either virtually or in person, in the Commission's decision-making. Follow the blog to keep updated on what the Commission is doing, view commentaries on their actions, and voice your opinion regarding those actions.Also, learn about the latest news in the energy world, and the technologies being developed to address our growing energy needs.
HOW UTILITIES MAKE A PROFIT
It’s important to understand how utilities make their money. They do not make their profits from the electricity or the gas that they sell to you. They make their profits from the infrastructure that they have invested in to produce that electricity, whatever the energy source is, be it fossil fuels or renewables. This infrastructure includes electric power lines, gas pipelines, and the power plants they build to generate that electricity. They get a guarenteed rate of return (ROR) on their capital investments, which must be approved by the Corporation Commission. Thus, they are incentivized to build more infrastructure, which increases the profits for their shareholders. The cost of this infrastructure is paid off by the utility's customers over decades on their electric and gas bill. Once it is built, the cost is passed on to the consumer. Even if it is no longer an economically viable solution, if it becomes a stranded asset, the consumer is still on the hook to foot the bill.
In Arizona, our utilities are presently considering investing in a $5.3 billion gas pipeline to bring gas from the Permian basin into Arizona, in order to supply more gas for gas-fired turbines that produce electricity. This would be a very costly project, when there are cheaper and better options.
According to LAZARD’s 2025 LCOE report, “Renewables remain competitive: On an unsubsidized #MWh basis, renewable energy remains the most cost-competitive form of generation. As such, renewable energy will continue to play a key role in the build out of new power generation in the U.S. This is particularly true in the current high power demand environment, where renewables stand out as both the lowest cost and quickest-to-deploy generation resource.” Regarding energy storage, the report goes on to say, “Storage Cost Decline: this year's analysis shows notable declines in the LCOS of utility-scale and C&I battery energy storage systems.” Lazard gives the following data on the LCOE of gas and solar energy sources: Solar + Storage is $50-$131 per MWh Gas combined cycle is $48-$109 per MWh Gas peaking is $149-$251 per MWh Note that Solar + Storage is still slightly more expensive than Gas combined cycle energy. However, this will soon change. Since 2020, the adoption of utility-scale battery storage has skyrocketed as its costs have plummeted, and it shows no signs of slowing down. And, solar technology has been rapidly advancing, and the price has been decreasing for the last 15 years. Thirdly, and most importantly, solar + storage does not require a gas peaker plant to handle high demand time loads, thus making it cheaper to install a solar farm than a gas fired plant. These factors together make the adoption of future gas projects economically pointless.
In Arizona, our utilities are presently considering investing in a $5.3 billion gas pipeline to bring gas from the Permian basin into Arizona, in order to supply more gas for gas-fired turbines that produce electricity. This would be a very costly project, when there are cheaper and better options.
According to LAZARD’s 2025 LCOE report, “Renewables remain competitive: On an unsubsidized #MWh basis, renewable energy remains the most cost-competitive form of generation. As such, renewable energy will continue to play a key role in the build out of new power generation in the U.S. This is particularly true in the current high power demand environment, where renewables stand out as both the lowest cost and quickest-to-deploy generation resource.” Regarding energy storage, the report goes on to say, “Storage Cost Decline: this year's analysis shows notable declines in the LCOS of utility-scale and C&I battery energy storage systems.” Lazard gives the following data on the LCOE of gas and solar energy sources: Solar + Storage is $50-$131 per MWh Gas combined cycle is $48-$109 per MWh Gas peaking is $149-$251 per MWh Note that Solar + Storage is still slightly more expensive than Gas combined cycle energy. However, this will soon change. Since 2020, the adoption of utility-scale battery storage has skyrocketed as its costs have plummeted, and it shows no signs of slowing down. And, solar technology has been rapidly advancing, and the price has been decreasing for the last 15 years. Thirdly, and most importantly, solar + storage does not require a gas peaker plant to handle high demand time loads, thus making it cheaper to install a solar farm than a gas fired plant. These factors together make the adoption of future gas projects economically pointless.
Nov. 14, 2025Electricity is too expensive. Here are three ways to fix that
Nov. 5,2025Why Are Rates Rising Faster at Investor-Owned Utilities Than at Public Utilities?
Nov. 5,2025Why Are Rates Rising Faster at Investor-Owned Utilities Than at Public Utilities?
Corruption at the acc
Has the Arizona Corporation Commission (ACC), which regulates our utilities, been corrupted?
The Arizona Public Service Company (APS) and its parent company, Pinnacle West, have a history of exerting their influence over our Corporation Commission. Beginning in the 2010’s, they started spending money on candidates who were running for office at the ACC. In 2012, APS funneled money through dark money groups to get conservative candidates elected to the Commission. This Commission then ended up voting to end incentives for commercial solar and reduce incentives for residential solar. In 2013, they voted to impose a monthly fee on new APS rooftop solar customers. Rooftop solar is contrary to their business model because it eats into their profits.
In 2014, APS again funneled money, this time $10.7 million, through dark money groups into the election to get Commissioners elected who were friendly to their wishes. Again, in the 2016 election, spending $4.1 million, which resulted in the end of net-metering. These donations were first denied by the company, but were later brought to light through an investigation in 2019 led by 3 of the commissioners who were not sympathetic to their interests.
What we are seeing is a utility, using money that it receives from its customers, to back candidates that support its own interests, whether it be a rate hike or a charge on solar customers.
It is not known if the current commissioners are being influenced by the utility, but it is troubling to see the actions they are taking, i.e. repealing the "Rest Rules" and the "Energy Efficiency Rules", and approving rate hike after rate hike.
July 15, 2026Corp Comm incumbents accept ‘prohibited donations’ despite claims to the contrary
June 18, 2026Arizona’s utility watchdog has become the utilities’ guard dog