By Danny Seiden, Guest Commentary //January 30, 2025//[read_meter]
By Danny Seiden, Guest Commentary //January 30, 2025//[read_meter]
When it comes to powering Arizona — our homes, businesses, and rapidly growing industries — reliable and affordable energy is non-negotiable. As energy demand surges and the push for cleaner, more efficient systems intensifies, our state faces an urgent challenge: how to modernize our energy infrastructure without placing undue financial strain on families and businesses.
One proven solution is securitization, a financial tool that allows utilities to recover costs more efficiently while protecting ratepayers from unnecessary spikes in their bills. Think of it like refinancing a mortgage: securitization lets utilities refinance certain costs, such as retiring outdated facilities, at a lower interest rate. The result? Billions saved for consumers and businesses, all while paving the way for a cleaner, more resilient energy future.
Securitization isn’t a new concept. Thirty-three states have successfully implemented it, helping utilities retire aging power plants and assets and invest in modern energy infrastructure without overburdening customers. Now, thanks to House Bill 2679, sponsored by Rep. Gail Griffin, Arizona has the opportunity to adopt this approach and cement itself as a leader in tackling energy challenges.
Here’s why this is critical: Arizona’s energy needs are growing faster than ever. Industries like advanced manufacturing, aerospace, and semiconductors are expanding at a rapid clip, driving demand for reliable power. Without tools like securitization, costs get passed directly to consumers and businesses, leading to higher rates and putting Arizona’s economic competitiveness at risk.
Securitization offers a practical path forward. By reducing the cost of decommissioning old facilities and enabling investments in clean energy and infrastructure, it ensures Arizona can meet its energy needs without sacrificing affordability or reliability. The savings benefit everyone: ratepayers enjoy lower bills, utilities gain the resources they need to innovate, and the state maintains its reputation as an economic powerhouse.
HB 2679 provides the legislative framework necessary to make securitization a reality in Arizona. It gives bond issuers the certainty they need to offer the lowest possible interest rates, maximizing savings for customers. It also ensures transparency and accountability, giving the Arizona Corporation Commission the authority to oversee how securitization is implemented and ensure it delivers on its promises.
The benefits go far beyond lower electric bills. For businesses considering Arizona as a destination, affordable energy is often at the top of their list. Companies in advanced manufacturing, data centers, and other energy-intensive sectors want access to clean, reliable power at predictable costs. Securitization aligns with these priorities, helping attract new investments, create jobs, and generate additional tax revenue for our state.
The Arizona Chamber of Commerce and Industry is committed to supporting smart policies that balance affordability, reliability, and innovation. HB 2679 is a win-win solution for customers, utilities, and our state’s economy. It’s a responsible approach to managing energy costs while ensuring Arizona remains a leader in economic development and sustainability.
As we dive into another legislative session, securitization is a proven policy solution Arizona can’t afford to overlook. Let’s work together to make it happen.
Danny Seiden is president and CEO of the Arizona Chamber of Commerce and Industry.
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