Arizona continues to need reliable, affordable energy

OPINION - This week, attorneys general from across the country are gathering in Scottsdale for the Democratic Attorneys General Association Policy Conference — a chance to address the challenges Americans face. As top enforcement authorities, they’ll discuss protecting consumers, holding powerful interests accountable, and keeping their states competitive in a fast-changing economy. For many Arizonans, one issue sits at the center of all three: access to affordable, reliable energy.

Across Arizona, families are facing an affordability crisis, and rising energy prices have become a top concern. At the same time, dependable and affordable power is essential for attracting major investments in technology, advanced manufacturing, and other fast-growing industries.

Yet Arizona’s largest utilities have not always acted in the public’s best interest. APS, the state’s biggest utility, recently filed to raise rates by another 14% after two years of increases totaling 16%. To justify the hike, APS pointed to growing sectors like data centers and manufacturing — industries that drive local economic growth and job creation.

Attorney General Kris Mayes challenged the request, filing a successful motion to intervene on behalf of ratepayers. She argued the proposal would boost APS’s net revenue by more than $580 million annually, taken directly from Arizona consumers and businesses. Meanwhile, APS’s parent company, Pinnacle West, recorded over $600 million in net revenue last year.

As Arizona’s energy prices grow more unpredictable, the state risks losing its competitive edge. Companies deciding where to expand — from semiconductor production to electric-vehicle manufacturing and cloud computing — depend on stable, predictable power. Without it, opportunities may shift elsewhere.

Blaming advanced industries doesn’t hold up. A recent Department of Energy-commissioned study shows today’s energy prices are driven mainly by extreme weather, an aging grid, and the energy transition. In fact, the industries utilities criticize are investing heavily in grid resilience and affordability.

As AG Mayes leads a DAGA panel on protecting consumers in a shifting energy landscape, Arizona regulators should hold utilities accountable. I applaud her work and urge her peers to follow suit.

 State Sen. Lauren Kuby (LD8) represents south and central Scottdale, half of Tempe and parts of Phoenix, and all of the Salt River-Pima Maricopa Indian Community. She is also an ASU Senior Global Futures Scientist.