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Environmental, business leaders weigh in on all-GOP Corporation Commission

Reagan Priest Arizona Capitol Times//November 15, 2024//[read_meter]

Rows of solar panels sit at Orsted's Eleven Mile Solar Center lithium-ion battery storage energy facility, Feb. 29, 2024, in Coolidge, Ariz. Batteries allow renewables to replace fossil fuels like oil, gas and coal, while keeping a steady flow of power when sources like wind and solar are not producing. (AP Photo/Ross D. Franklin)

Environmental, business leaders weigh in on all-GOP Corporation Commission

Reagan Priest Arizona Capitol Times//November 15, 2024//[read_meter]

In 2025, Republicans will fill all five seats on the Arizona Corporation Commission, but clean energy advocates, environmentalists and business leaders aren’t sounding a death knell for their causes. 

Rachel Walden, Rene Lopez and incumbent Commissioner Lea Marquez Peterson were the top three vote-getters in the Nov. 5 election to fill three open seats on the ACC. They edged out three Democratic candidates and two Green Party candidates. 

Democrats Ylenia Aguilar, Jonathon Hill and Joshua Polacheck ran as an environmentally-friendly, climate-focused slate, while the Republicans campaigned on lowering utility rates through the free market and a diverse energy portfolio.

Sandy Bahr, director of the Sierra Club’s Grand Canyon chapter, said she was a bit surprised by the results.

“I did not anticipate that the Republicans would sweep it,” Bahr said. “I thought that there might at least be one or two Democrats, but I knew it was going to be tough.” 

Environmental groups like the Sierra Club and clean energy groups like Advanced Energy United say the supermajority will present challenges to environmental protection rules and the promotion of alternative energy sources. However, the Republicans held all five seats as recently as 2018, while Democrats haven’t had a majority since 2010.

Currently, the commission has a 4-1 Republican majority. Republican Chair Jim O’Connor and Democratic Commissioner Anna Tovar both decided not to run for reelection. 

Bahr has been an environmental lobbyist at the state Capitol for decades and said groups like the Sierra Club are no strangers to working with Republican majorities – whether at the commission, the state Legislature or the Governor’s Office. 

“We’re expecting to see more of the same, except there won’t be dissent on the Commission. I think they are likely to have a lot of five zero votes,” Bahr said.

She anticipates that the new commission will move forward with repealing the Renewable Energy Standard and Tariff rules and the Electric Energy Efficiency Resource Standard. The commission enacted the two policies in 2006 and 2010 respectively, and they require utility companies to meet certain renewable energy and energy efficiency goals. 

The commission voted earlier this year to start the process of repealing both standards, despite protests from the lone Democrat on the commission and clean energy advocates. The goals set by both policies have been met, but advocates say repealing the standards will allow utilities to fall behind or reduce progress that has already been made. 

Bahr said she also expects the incoming commissioners to defend the commission’s June 2024 decision to exempt a UniSource Energy power plant expansion from environmental review. That decision is currently the subject of three lawsuits in Maricopa County Superior Court. 

“I know that all sounds really negative, and I just think more than ever, people need to show up and speak up, and especially speak up for those who don’t have an opportunity either to come to the Legislature or be at the Corporation Commission,” Bahr said.

Michael Barrio, a policy expert with Advanced Energy United, said he has a more optimistic view on working with the new commission.

“The ACC makeup may initially seem challenging for some clean energy advocates, but I feel like for us, it really presents an opportunity to engage with the commission on the economic benefits of clean energy, especially as our energy demand rises and the reliability conversation becomes critical,” Barrio said.

He said he will be focused on pitching clean energy from an economic growth perspective, which current and future Republican commissioners have indicated is a priority.

“We have to do a better job of emphasizing how things like expanded [electric vehicle] infrastructure and community solar contribute to local job growth and tax revenue, and how that aligns with a Republican-leaning commission’s economic goals,” Barrio said.

Danny Seiden, president and CEO of the Arizona Chamber of Commerce and Industry, said he doesn’t think anyone should expect “anything drastic” moving forward because he believes the commission is focused on the affordability and reliability of utilities.

“I don’t think they’ve said they’re against clean energy,” Seiden said. “I think they’re focused on a lot of renewables.”

Seiden said the chamber has supported the commission’s course in recent years because it brought business to Arizona and benefited the economy. He highlighted how the reliability of the state’s energy grid keeps Arizona competitive economically and attributed that to the commission. 

“I think the Corporation Commission deserves a lot of respect and a lot of adulation for what they’ve been able to do,” Seiden said.

However, the commission has received criticism for its decisions related to renewable energy, environmental protections and increased utility rates.

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