Opinion: Arizona Corporation Commission continues to put reliability first

This column originally appeared in the Arizona Digital Free Press.

Arizona’s booming economy depends on access to reliable, affordable energy.

Recently, the Arizona Corporation Commission (ACC) took an important step to safeguard that energy future by endorsing the Integrated Resource Plans (IRPs) of Arizona Public Service (APS), Tucson Electric Power (TEP), and UniSource Energy.

Each plan outlines how these utilities will power our growing state with a balanced mix of renewable and traditional energy sources. The result? Energy that’s both dependable and cost-effective—essential for Arizona’s quality of life.

Meeting demand with a balanced approach
As Arizona’s population grows, so does its demand for electricity. Businesses are expanding, data centers are popping up, and residential communities are multiplying. APS, for instance, expects a 40% rise in peak energy demand by 2031. To meet this need, APS will add over 8,000 megawatts (MW) of new capacity from solar, wind, battery storage, and natural gas sources. This balanced mix is key to ensuring that our lights stay on even during high-demand periods or when renewables aren’t enough.

TEP’s plan is similar, emphasizing renewable energy sources like solar and wind, backed by natural gas to fill in when needed. These approaches allow Arizona to transition to cleaner energy while keeping the grid steady—a smart, balanced strategy that puts reliability front and center.

Driving affordability through competitive bidding
The ACC is setting a high standard by requiring utilities to adopt an “all-source” request for proposals (RFP) approach for new energy resources. This means utilities seek out competitive bids for various types of energy, from solar and wind to storage and natural gas. By leveraging market competition, utilities can select the most affordable and effective energy solutions—keeping costs manageable even as Arizona’s energy needs expand. Thanks to this strategic process, Arizona’s electricity rates remain below the national average, which is a significant advantage, especially as we experience record-hot summers and heavier energy use.

Avoiding California’s missteps
Arizona’s energy policies are yielding results that stand in sharp contrast to California, where strict mandates and heavy subsidies for specific renewable resources have driven up costs and diminished grid reliability. Arizona’s approach values flexibility, allowing for a dynamic mix of energy sources based on market realities. The difference is clear: Californians now pay an average of 26.77 cents per kilowatt-hour—more than double Arizona’s 12.79 cents, per the U.S. Energy Information Administration. Our commissioners have taken a smart path by avoiding over-reliance on any single energy source, preserving the stability and affordability that Arizona’s families and businesses count on.

Reliability: A necessity, not a luxury
In Arizona, reliable energy isn’t just a convenience—it’s a necessity. Our state’s extreme summer heat, with record-breaking temperatures this year and many days topping 100 degrees, demands a resilient power grid. Uninterrupted energy access is crucial for health, safety, and the economy. Arizona’s utilities, including APS, TEP, and Salt River Project consistently rank among the nation’s best for reliability, even as they expand services to meet growing demand. Their track record ensures that homes and businesses stay powered, even during peak heat waves and under challenging conditions.

Recognizing the efforts that power Arizona
The ACC’s recent endorsement of these 15-year plans reinforces Arizona’s commitment to a future where energy remains reliable, affordable, and increasingly clean. Utilities like APS, TEP, and UniSource are performing a careful balancing act—building a mix of energy sources that keeps costs down while making way for renewables. The Commission’s work is vital to Arizona’s continued success, ensuring that as we grow, we maintain the energy reliability that families and businesses rely on.

Our commissioners and the utilities they regulate deserve recognition for leading Arizona’s energy future with a balanced, customer-centered approach. Their work means Arizona can keep growing without sacrificing what matters most: reliability, affordability, and a sustainable energy path that benefits everyone.

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