Lawmakers Target Corporation Commission and Utility Companies for Reform

Recent legislative efforts in Arizona aim to shape the future of the Arizona Corporation Commission, which oversees utility regulation in the state. A mix of both Republican and Democratic lawmakers are introducing bills that could significantly impact utility companies and ratepayers alike.

A key player this session is Rep. Justin Olson, a Republican from Mesa and former ACC commissioner. He has proposed two notable bills intended to enhance oversight and stability within the state’s electric grid. His first bill, House Bill 2518, addresses the “revolving door” phenomenon between the commission and utility companies by prohibiting recent employees of one from being hired by the other.

Organizations such as the Sierra Club have expressed cautious optimism regarding Olson’s bill. Sandy Bahr, director of the Sierra Club’s Grand Canyon chapter, indicated that the anti-revolving door measure is a welcome development in utility regulation.

Olson’s second bill, House Bill 2527, seeks to ensure that any electrical generation facilities retired are replaced by new ones with equal or greater capacity. Additionally, it mandates a 5% increase in dispatchable energy resources from 2025 to 2030. While aimed at bolstering the grid’s reliability, Bahr cautioned that it could complicate the transition to renewable energy sources.

Other Republicans have also introduced their own legislation related to the commission. Rep. Walt Blackman has proposed increasing fees for applications to the commission’s line siting committee, while Sen. Tim Dunn seeks to amend the definition of the Residential Utility Consumer Office (RUCO), which advocates for utility customers in rate cases. Bahr has expressed skepticism about the potential impacts of these bills, noting that Dunn’s amendment might divert RUCO from its consumer-focused mission.

Democratic lawmakers are also making their voices heard, with Rep. Mariana Sandoval proposing a ban on utility companies using customer funds for lobbying and other non-consumer-related activities. Meanwhile, Rep. Oscar De Los Santos has introduced a bill aiming to lower the threshold for power plant classification from 100 megawatts to 25, a response to a controversial ACC decision last year regarding environmental certification for a power station expansion.

That decision has sparked legal challenges, with opponents arguing for a more stringent environmental review based on total output. Bahr noted that while accountability in utility regulation is crucial, she remains skeptical about the commitment from Republican legislators, who often align closely with utilitarian interests.

As the session progresses, the implications of these proposed bills will unfold, potentially reshaping Arizona’s energy landscape. For now, supporters call for stronger accountability and oversight within the commission, hoping to create a more transparent utility regulatory environment.