Two bills on energy infrastructure reach governor’s desk

Two bills that are of critical importance to the state’s energy infrastructure and the maintenance of competitive rates are on their way to Gov. Katie Hobbs. 

Wildfire mitigation 

Sponsored by Rep. Gail Griffin (R-Hereford), HB 2201 would require Arizona utility companies to submit detailed wildfire mitigation plans to the state forrester and governing body every two years. These plans must include vegetation management strategies, power line safety measures, and coordination with fire and land agencies.  

The goal is to enhance fire prevention while also defining utility liability. Arizona Public Service (APS), which already spends around $110 million annually on wildfire prevention, testified in support of the bill as it made its way through the committee process, emphasizing its proactive efforts like maintaining fire-access corridors. 

Securitization 

Backed by the Arizona Chamber and a coalition of business leaders, HB 2679 would authorize the Arizona Corporation Commission to allow utility companies to use securitization — a financing tool already used in over 30 states.  

A letter to state senators from a coalition of dozens of the state’s leading business organizations argued the bill would promote greater reliability and lower consumer costs. 

“Securitization is not a new solution—it’s a proven concept that has been successfully implemented in 33 other states. As our state continues to grow under your leadership, it is essential that we embrace forward thinking utility policies that support economic vitality, reliability, and affordability,” the letter said. 

This mechanism lets utilities recover extraordinary one-time costs (like wildfire damage or plant retirements) by issuing low-interest bonds rather than imposing immediate rate hikes on consumers. The bill ensures utilities cannot profit from these costs, directing the savings to customers and promoting long-term bill stability. 

The business community view 

“We’re grateful to Rep. Griffin for her leadership and to the Legislature for passing these two bills with strong, bipartisan support,” Arizona Chamber of Commerce & Industry Executive Vice President Courtney Coolidge said. “These bills will protect ratepayers against wild swings in rates and send a strong message that our state will work to preserve reliable service for businesses and homeowners. We’re hopeful Gov. Hobbs will sign them both into law.”