Did you know that Arizona has one of the most reliable power grids in the country—despite also having over 100 days of 100-degree heat with millions of people running air conditioners on full blast?
Unfortunately, special interest groups want to change all that, remaking Arizona in California’s image by “going green,” no matter the cost. But it’s not going to happen: Arizonans can continue to enjoy reliable, cost-effective energy after the Arizona Corporation Commission, which is responsible for regulating utilities in the state, passed two amendments last week—at the Goldwater Institute’s urging—that will keep the lights on for years to come.
In Northern Arizona, the Four Corners Power Plant, which provides some of the cheapest and most reliable power to Arizona Public Service (APS) customers, is being phased out due to unrelenting federal government pressure. That’s why the Corporation Commission passed Joint Amendment Number 1, requiring APS to replace the nearly 970 kilowatts of power that is currently supplied from coal at Four Corners with natural gas, nuclear, or battery storage energy sources. After all, consumers cannot rely on intermittent energy sources like wind and solar to replace the energy that will be lost when the plant closes its doors. The amendment also requires APS to demonstrate in annual reporting filings its progress toward ensuring resource adequacy, as well as any factors that may impact its planned exit from Four Corners.
“As long-standing and dependable coal power plants continue to shut down in Arizona and across the country, it’s critical to ensure Arizona’s grid remains reliable,” Commissioner Kevin Thompson said after the joint amendment passed. “We must deploy the most dependable generation sources to keep up with our state’s tremendous growth and demand for electricity. This amendment will help ensure the lights and AC stay on when the generation cliff comes.”
The Corporation Commission also approved an amendment that significantly expands operations at the Redhawk Power Plant, a natural gas plant in Western Arizona. The planned expansion includes eight new natural gas peaker plants (plants that run when there is high demand) and provides an additional 400 megawatts of energy to our power grid. This project will help replace some of the power that will be lost when Four Corners closes down.
As Goldwater noted in comments filed in favor of Joint Amendment Number 1 and the Redhawk Power Plant expansion, Arizona must avoid going down the path of “green at any cost.”
This is not the first time Arizona has had to take a stand against costly “green energy” mandates. In 2018, California progressive cronyist Tom Steyer backed Proposition 127, a ballot initiative in Arizona that would have required private energy utilities to generate at least half their electricity from renewable sources by 2030. That would have raised energy costs drastically with little to no environmental benefit, as a Goldwater study by economist Stephen Moore revealed. The Goldwater Institute spearheaded the campaign to defeat Prop 127, saving Arizona from a very costly and dark future.
One need only look to our neighbors to the west to see the devastating impacts of such misguided policies. In California, residents receive “Flex Alerts” urging them to drastically reduce or cease energy usage during peak demand hours, which usually occur between 4:00 p.m. and 9:00 p.m., when families are home doing chores or trying to cool down in the heat of summer. Californians are encouraged to refrain from using major appliances like washers, dryers, and ovens, and are even asked to switch from air conditioning units to fans. This would be an unimaginable scenario for Arizonans, who already deal with blistering and sometimes life-threatening heat.
California’s approach has also been costly for its residents. According to the U.S. Energy Information Administration, Californians pay more than double what Arizonans pay per kilowatt hour, and their power is far less reliable.
Arizona cannot afford to so recklessly abandon natural gas and nuclear energy and transition instead to wind, solar, and battery storage. The passage of both amendments are welcome actions that will maintain grid reliability and keep costs low for consumers.
Arizonans deserve better than for their state to become California 2.0.
Austin VanDerHeyden is the Director of Municipal Affairs at the Goldwater Institute.
