Energizing Arizona’s Tomorrow: The Rise of Intelligent Energy Solutions

Arizona is facing a critical challenge in meeting the increasing energy demands of its homes, businesses, and rapidly growing industries. With a strong push for cleaner and more efficient energy systems, modernizing the state’s energy infrastructure is essential. This modernization must be achieved without overburdening families and businesses with high costs.

A promising solution to this challenge is securitization, a financial method that allows utilities to recover costs efficiently while protecting consumers from sharp increases in their bills. This process is reminiscent of refinancing a mortgage; it enables utilities to refinance certain expenses, such as retiring outdated facilities, at reduced interest rates. The outcome is significant savings for consumers and businesses, while fostering a cleaner and more resilient energy future.

Securitization has already been adopted by thirty-three states, facilitating the retirement of aging power plants and the investment in modern energy infrastructures. Now, with the introduction of House Bill 2679 by Rep. Gail Griffin, Arizona is positioned to harness this approach and take a leadership role in addressing its energy challenges.

The urgency of this initiative is underscored by Arizona’s rapidly expanding energy needs driven by industries such as advanced manufacturing, aerospace, and semiconductors. The absence of tools like securitization could lead to direct cost transfers to consumers and businesses, resulting in higher energy rates that jeopardize the state’s economic competitiveness.

Implementing securitization would significantly reduce the costs associated with decommissioning outdated facilities and foster investments in clean energy and infrastructure. This strategy enables Arizona to meet its energy demands without compromising affordability or reliability. The collective savings benefit everyone: lower bills for ratepayers, enhanced resources for utilities, and sustained economic vitality for the state.

House Bill 2679 lays the groundwork for making securitization a reality in Arizona. It provides bond issuers with the assurance necessary to offer the lowest possible interest rates, thus maximizing savings for consumers. Moreover, it ensures transparency and accountability, permitting the Arizona Corporation Commission to monitor the implementation process and ensure adherence to its commitments.

Beyond reduced electricity bills, the implications of this bill are far-reaching. Affordable energy is a top priority for businesses considering expanding to or relocating in Arizona, particularly in energy-intensive sectors such as data centers and advanced manufacturing. Securitization aligns perfectly with these needs, helping to attract new investments, create jobs, and boost state tax revenues.

The Arizona Chamber of Commerce and Industry actively supports policies that promote a balance of affordability, reliability, and innovation. Backing HB 2679 represents a beneficial strategy for consumers, utilities, and the state’s broader economy. This approach allows for prudent energy cost management while ensuring Arizona’s position as a leader in economic development and sustainability.

As the new legislative session unfolds, it is vital for Arizona to consider securitization as a proven policy solution that cannot be overlooked. Collective efforts are necessary to bring this initiative to fruition.

Danny Seiden is the president and CEO of the Arizona Chamber of Commerce and Industry.