Arizona Regulators Demand Utilities Prioritize ‘Reliability’ and ‘Affordability’

By Matthew Holloway |

Arizona Corporation Commissioner Nick Myers emphasized the crucial need for reliability and affordability to energy providers during a workshop focused on developing an Integrated Resource Plan (IRP). The workshop saw participation from Arizona Public Service Company (APS), Tucson Electric Power Company (TEP), UNS Electric, and Arizona Electric Power Cooperative.

The IRP process is mandated by the commission every three years. At the workshop, the energy providers presented their projected load growth and analyzed their resource portfolios and revenue requirements.

APS and TEP outlined their timelines for decommissioning coal-fired power plants. APS aims to shut down its plant at Four Corners by 2031, while TEP plans closures at various locations by 2032. Both utilities plan to replace these plants primarily with natural gas generation, utilizing existing infrastructure to maintain affordability as they transition to renewables, battery storage, and new technologies.

Myers questioned if the utilities’ analyses were based on the lowest cost and most technologically neutral means, avoiding politically motivated mandates that could lead to higher costs or less reliable resources. His queries aimed to ensure that the utilities’ plans aligned with Commission rules focusing on reliability and cost-effectiveness.

“IRP planning is a complicated process involving various scenarios, multiple iterations, and complex projections,” Myers stated. He added that understanding the utilities’ plans and addressing discrepancies is vital to ensuring Arizonans enjoy uninterrupted and affordable electricity.

The commission is now reviewing the IRPs and expects to present a memorandum and proposal by the end of the month. Myers confirmed, “Reliability and affordability will remain my highest priorities. We cannot afford blackouts or brownouts in Arizona.”

In a related July press release, Chairman Jim O’Connor echoed similar concerns about the state’s electric grid stress due to hotter temperatures and monsoon winds. He praised Arizona’s utilities for their efforts and called on residents to help by adjusting home thermostats and limiting heavy appliance use and EV charging to later in the evening.

Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.