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Diane Brown: Promoting pragmatism over partisanship with PIRG

Diane Brown has spent the past four decades advocating for consumers with the Public Interest Research Group. Twenty of those years have been spent in the Grand Canyon state, where she serves as the executive director of the Arizona Public Interest Research Group. Brown sat down with the Arizona Capitol Times to chat about her pragmatic approach to policymaking and focus on energy issues. 

The questions and answers have been edited lightly for style and clarity.

Can you tell me about your career journey and how you got to Arizona PIRG?

In large part, I would say my upbringing had an influence on the path that led me to PIRG. My mom had been extremely active in my school, our church, our community, and she paid a lot of attention to state and national issues. My dad and a couple of his colleagues built and expanded an accounting firm. I think both the experiences and the responsibilities they had helped me to see the importance of doing something that you enjoy every day and being part of a community. I was involved in a lot of activities throughout school and during graduate school. PIRG was doing a massive voter registration drive, particularly geared at college students and first-time voters. And I really appreciated the focus on giving people facts and information and not hounding them on a particular position or for a particular candidate. 

How long have you been at PIRG?

Over 40 years. I started working on college campuses, helping train students to take an idea and move it along the policy process, overseeing internships and in the summertime, running door-to-door canvasses to help engage citizens on issues in the public interest. I had the opportunity to return to Chicago, where I’m from, after several years on the East Coast. I directed our Illinois offices for about 15 years, where I got into policy at a much greater scale, and also had the privilege of overseeing a lot of our offices in the Midwest, from Indiana to Missouri and points in between. And then came to Arizona a little over 20 years ago to start up Arizona PIRG, which I really enjoyed.

What does Arizona PIRG do?

Arizona PIRG is a statewide organization that conducts research, education and advocacy on issues in the public interest, with a focus on protecting consumers. To us, public interest is the greatest good for the greatest number of people over the longest period of time, and we think of ourselves as pretty unique in Arizona in that we’re the only organization we’re aware of that advocates on behalf of all consumers and not just a segment of the population. There are great organizations that focus on low income, on children, on seniors, and we really kind of span that. And so whether you are a resident in Yuma or a business in Paradise Valley, we want to make sure that you’re not getting ripped off.

What is the most rewarding part of your job?

The most rewarding (part) is having conversations with an individual or a set of individuals to find common ground and determine a path forward working together. PIRG really espouses the “no permanent friends, no permanent enemies” philosophy and there are a number of instances where we’ve been able to agree on a policy recommendation with an entity that we don’t see eye to eye with on anything else. And vice versa. There are organizations that we often are aligned on a particular policy, but we don’t always agree. To me, it’s extremely rewarding to hear from other perspectives, to absorb information, look at statistics and data trends, but at the end of the day, find a way to ensure that there are good, pragmatic policies that can withstand the politics.

What is the most challenging part of your job?
The most challenging has been this devolution of partisan politics. Too often we see rhetoric over reality and the politics playing a role more than the policy itself should. In a number of individual conversations, we can find common ground with very different perspectives from different political parties, perhaps for different reasons, but at the end of the day, oftentimes there are votes that align with that political party versus with what that individual will often tell us they’d like to see happen.

You’ve been with PIRG for so long. What keeps you coming back year after year?

With PIRG, I’ve had an opportunity to be responsible in a variety of different facets of the organization. No two days are alike. It is extremely rewarding to see progress being made. To us, progress doesn’t always mean a bill is getting signed or a monumental executive order has been authored, but it is seeing more people getting engaged in the political process, more people understanding the roles that the municipalities, the counties, the state, different agencies play, and paying more attention to those as a result having policymakers that then pay attention in a more significant manner to their constituents.

Looking back, can you tell me about a win from your career you still think about?

Arizona has a very successful energy efficiency standard. The energy efficiency standard that was adopted by the (Arizona Corporation) Commission has resulted in a net benefit of billions of dollars in our state, has not only reduced energy, but it’s also reduced water consumption. It has avoided the need for additional power plants that, in many instances, have created more pollution, adverse public health impacts, and it is a program that really can benefit both the ratepayer who takes advantage of a program, but also all ratepayers due to the alleviation of the need to spend more money on costly capital infrastructure.

Why does Arizona PIRG focus on the ACC?

When I first came to Arizona, it was really important to me, to not just jump into the first issue that I read in the newspaper, but to really get out there and talk to a wide variety of individuals. So after hundreds of meetings with nonprofit leaders, business leaders, elected officials from both sides of the aisle, members of the media, folks in the philanthropy community, we landed on working on energy issues at the Arizona Corporation Commission as our dominant focal point for those initial years. As anyone reading the Capitol Times knows, energy has not gone away from being a big, important issue. Many could argue it’s even more important today than it was 20 years ago, and therefore a significant part of my time is focused on energy issues, not just with the commission, but I’m also part of utility stakeholder groups for APS, SRP, TEP and UNS, bringing a consumer perspective from customer communication to resource planning decisions.

What do you wish consumers knew about the ACC?

Over the course of the last six months or so, we’ve had a team of folks that have gone across the state to talk to individuals one-on-one, as well as conduct community town halls, along with RUCO and Wildfire, and in those forums, have really tried to help people understand what the commission is, what the components of a rate case are, and how they can get involved. And across the board, it’s been really interesting to hear from folks based on their utility bill, whether it’s UNS, APS or TEP, and the questions that they have for policymakers when it comes to how they assess the decisions before them. If we ensure all consumers in the state have that information, I think we’d find that even more individuals and households would weigh in, not only on rate cases, but on other policy decisions that impact them and their bank accounts.

Governor unveils state strategic energy plan

Key Points:
  • Gov. Katie Hobbs rolled out an energy report addressing data center growth, energy demand
  • The report was generated through the “herculean effort” of state energy stakeholders
  • Hobbs urged state leaders to work in a bipartisan manner to secure Arizona’s energy future

Gov. Katie Hobbs’ office is rolling out a state strategic energy plan to address data center growth, skyrocketing energy demand and high utility bills. 

The plan is part of a three-pronged report developed by Hobbs’ Arizona Energy Promise Task force, which she created via executive order in September. The 36-member group developed 31 recommendations covering myriad energy topics in what one task force member called a “herculean effort.”

Hobbs’ Office of Resiliency, led by Director Maren Mahoney, helped the task force develop the recommendations through five working groups composed of members from the private sector, state utility companies, state agencies, nonprofit organizations, universities, and more. 

The governor told reporters after an April 2 task force meeting that the work is only just beginning, but bringing together stakeholders who typically do not agree to find common ground was no small feat. 

“I’ve never heard so many people so excited about being involved in a government task force before, but I think it’s because there is the acknowledgment that we have this really big issue of needing to plan strategically for our energy future,” Hobbs said.

Some of the task force’s recommendations are likely to be rolled out sooner rather than later, according to Mahoney. There is already interest from stakeholders in creating a statewide energy efficiency campaign as outlined in the report, which could help Arizonans weatherize their homes and upgrade old appliances for energy bill savings.

But Hobbs also acknowledged that many of the recommendations will require support and decision-making efforts from the all-Republican Arizona Corporation Commission and the Republican-controlled Legislature. Despite the anticipated opposition, she said she is confident state leaders can put aside political differences to advance the task force’s recommendations.

“(It’s) about doing what’s best for Arizona, not what’s going to benefit a political party or not,” Hobbs said. “I think we’ve shown on big issues like Ag-to-Urban, like the Diamondbacks and Axon, we can work together to do what’s right for Arizona.”

State strategic energy plan

The report outlines five energy challenges the state is currently facing: load growth, supply chain constraints, federal policy changes, extreme weather and climate change, and water use implications. The recommendations offer both near-term and long-range strategies for addressing those challenges. 

Most notably, a majority of the task force’s recommendations for the state strategic energy plan revolve around transitioning the state to renewable energy sources and away from coal and natural gas. That push may come against the ACC and Republicans in the Legislature, who remain largely supportive of President Donald Trump’s initiatives to reinvigorate the coal industry and move away from solar and wind. 

The task force recommends supporting the conversion of coal plants, increasing deployment of distributed solar projects, encouraging the development of utility-scale wind and solar projects and encouraging the adoption of “low-carbon, water-use firm” technologies. 

Hobbs said the state is ready to grant permits for renewable energy projects on state land, while the Trump administration is rejecting them on federal land. But she said the state is not in a position to fully transition away from natural gas affordably, as it is currently Arizona’s largest source of energy.

“We are not in a position where we can pick winners and losers in the energy space. We have to have an all of the above approach,” Hobbs said. 

The governor also acknowledged that many of the task force’s recommendations fall within the ACC’s regulatory and ratemaking authority. One of the commission’s staff attorneys served as a task force member and Commissioner Rene Lopez served on the task force’s nuclear working group.

“The Corporation Commission is a very important aspect of all of this,” Hobbs said. “You saw them represented in the room, and I think we’ve provided some, I don’t want to say direction, but like here’s what you can take and do.”

Framework for large load growth

The task force also developed six recommendations for addressing large load growth customers like data centers and semiconductor manufacturers. Arizona is becoming a hub for both, which increases demand on the state’s energy grid and water resources.

Two of the task force’s recommendations focus on recent community backlash to data center projects. One includes requiring or incentivizing data center developers to proactively engage with communities and invest in community priorities, while another urges collaboration with local governments to inform the public about potential projects. 

“Across the United States, a lack of transparency and clear communication about large load customers and their impacts on the energy system has contributed to public concern and opposition,” the report states.

With many Arizonans concerned about data center costs being passed on to them in their utility bills, the task force recommended exploration of bring-your-own-capacity programs. BYOC programs allow data center companies to pay utility customers for the excess energy generated by their rooftop solar panels or electric vehicle batteries, a concept known as virtual power plants. 

The report also recommends revisiting the state’s tax incentives for data center projects, although the Data Center Coalition, Microsoft and Google each objected to that recommendation. Hobbs also proposed repealing the data center tax incentive in her executive budget, but the Legislature seems relatively uninterested in getting rid of the incentive. 

Advanced energy sources

The task force also explored how emerging energy resources could be used to help meet increased demand for energy. It created eight recommendations regarding preliminary steps the state could take to advance the development of geothermal and nuclear energy. 

Twenty-seven percent of the state’s energy portfolio is nuclear — all of which comes from the APS Palo Verde Generating Station. 

The task force recommended identifying potential state tax incentives, investments and grants to help reduce the costs to build new nuclear energy projects, while also streamlining environmental review and permitting processes to accelerate development. 

However, the Arizona Public Interest Research Group disagreed with the two nuclear recommendations.

“Despite numerous attempts across the country, nuclear energy has not been able to provide finance certainty nor proven affordable for ratepayers,” the public interest group wrote in the report. 

Hobbs acknowledged the cost and environmental concerns related to the deployment of advanced nuclear technologies to reporters, but said it is important for the state to stay at the table. 

“The federal government is looking to accelerate more nuclear energy and obviously there’s safety concerns, environmental concerns that we have to make sure that we’re attending to, but we’re absolutely making sure that Arizona is a part of those conversations,” Hobbs said.

The report also outlined several recommendations for advancing the development of geothermal energy resources, a currently unutilized source in Arizona. Those recommendations primarily focus on research efforts to better understand how geothermal could be deployed in the state and barriers to entry. 

Overall, the governor, her staff and the task force members emphasized the release of the report is only the beginning of the conversation.

“We’re not all going to agree, we all did not agree, but I think the process itself has been really, really, incredibly valuable,” Mahoney of Hobbs’ Office of Resiliency, told the task force. “… This is not the end. This is the beginning of our implementation process.”

We can barely survive, and APS wants more?

Ruthey Phillips

My husband and I have gotten used to living in the dark. We abide by a strict “one light at a time rule” in our home to keep our energy bills down. I rely on an oxygen machine to breathe, and my husband needs a CPAP machine and a heart monitor. These devices are critical to our survival and require a lot of power. To balance those needs, we restrict our energy uses elsewhere.

I was born and raised in Yuma, and my husband and I have lived here for 13 years. Arizona is our home and lately, our home here has been dark and cold. Even though we’ve been cutting back, our electricity bill was $567 last month. 

To make a bad situation worse, Arizona Public Service wants to raise our electricity rates by 14% this year. Under those rates, our bill last month would have been almost $650. My husband and I have a combined income of about $4,000 per month. When we factor in the cost of rent, gas, food and other necessities, there’s nothing left to cover APS’ proposed increase. 

My parents taught me that if I wanted to support myself and a family, I had to get up every morning and go to work. I’ve done just that throughout my life. I worked as a medical specialist that helps people, often children and seniors, access care. My job was to make sure folks were able to get what they needed to survive. Now that I need the support, there is no support out there for me and other seniors.

Already, I’ve fallen behind on my APS bill. I’ve had to skip payments in the past in order to pay for food and water for my husband and me. Last month, I paid APS a total of $900, which left 35 cents in my bank account. I had hoped my husband and I would be able to go out to dinner or do an activity to celebrate our anniversary, but we were not able to afford it. 

I’m drowning in late notices from APS, our credit cards and the hospital. Recently, everything is so expensive, and it feels impossible to keep up. It’s a struggle to put food on the table every day. I don’t understand how it got to this point. My husband and I have both worked our whole lives. We saved money. We utilized resources like WorkMoney, which helps people lower their monthly costs. We’ve played by the rules, and right now, it feels like billionaires, CEOs and politicians are not holding up their end of the bargain. What happened to the promises of the American dream?

APS’ parent company, Pinnacle West, made $600 million in 2024. The CEO of APS makes over $3 million a year. APS has already raised its rates twice in the past four years, by 8% in 2022 and 8% again in 2024. This is not a struggling company trying to keep up with the cost of business. It is a company asking Arizonans to sacrifice more food, fall behind on more bills and give more of our hard-earned money to boost their profits. 

Fortunately, Arizonans have an opportunity to fight back and speak up against the proposed rate increase. In May, the Arizona Corporation Commission will hold a public hearing where we can demand the commissioners stop the 2026 rate hike. I shared my story at a hearing in February, and APS customers across Arizona are doing the same. Just by attending a hearing or submitting a public comment online, we can make a real difference. 

I’m sure very few of us can afford the proposed rate increase. It is an added burden for Arizona families at a time when we are already struggling. I’m tired of living in the dark. That is why I am calling on the Arizona Corporation Commission to stand with the hardworking people of Arizona and oppose APS’s 14% rate hike. 

Ruthey Phillips is a long-time Yuma resident.

Powering Arizona’s economy takes foresight and investment

Jimmy Lindblom

Everywhere you look, you can see Arizona’s incredible growth happening in real time. But what we don’t always stop to fully appreciate is that beyond growing in population, we’ve completely transformed our economy along the way.

Once looked down on as a “flyover state,” Arizona has become the place to be for the biggest industries in our economy, from advanced manufacturing to high-tech startups.

We are now internationally recognized as the hub for semiconductors. All this growth isn’t only powering our economy with great jobs; it’s also supporting the onshoring of American manufacturing and bolstering our national security.

This success didn’t just happen by accident. It was the result of intentional policy and strategic investments in infrastructure that allowed Arizona to strike when the iron was hot.

And following the Great Recession, when Arizona was hit harder than almost any other state due to our reliance on homebuilding, our leaders developed an aggressive plan to diversify our economy.

Today, Arizona faces new challenges — and once again, bold action is needed.

Utility providers like APS and SRP now project that Arizona’s electricity demand will double in just six years. That’s the same amount of growth it took more than a century to reach before.

It’s not stopping anytime soon. Nearly 500 manufacturing companies are currently in the pipeline to move or expand in our state, according to the Arizona Commerce Authority. These projects represent jobs, investment, opportunity, and rising quality of life for Arizonans — but only if we’re ready.

Our energy infrastructure must rise to meet this demand. Fortunately, Arizona already has a strong foundation. We’ve built a balanced energy mix: 45% natural gas, 27% nuclear, 8% coal, and 19% renewables as of 2024. This diversity is one reason why our state has experienced no significant blackouts or brownouts, even as demand has climbed. It’s proof that smart energy policy works. You can’t say the same for some of our competitors, like Texas.

We’re also leading the way on renewable energy. Arizona ranks among the top five states in solar-powered generating capacity, with more than 6,100 megawatts installed. In 2024, solar accounted for 82% of all newly approved energy generation capacity statewide — a clear sign we are embracing innovation while maintaining reliability.

But innovation without investment won’t be enough. If we fail to act, our ability to support new businesses, power our communities, and keep utility costs affordable will be at risk.

That’s why we formed Arizonans for Responsible Growth, a coalition of business and community leaders committed to keeping Arizona’s economy strong by advocating for smart, forward-looking investments in our energy and water infrastructure. We believe that preparing for tomorrow means acting today.

Our goal is to identify, recruit, and support candidates who understand the relationship between responsible growth and healthy utilities. Our candidates will support diverse energy sources, data-driven demand projections, and provide the most affordable and reliable power to our residents and businesses.

We felt compelled to form Arizonans for Responsible Growth to push back against an ideological anti-growth contingent pursuing energy policies that have failed in states like California.

Reliable power isn’t a luxury — it’s a necessity. It’s about protecting the Arizona we’ve built and securing the opportunities we want to pass on to future generations.

Arizona’s success story is still being written. With responsible planning and united leadership, we can make sure the next chapter is even brighter than the last. 

Jimmy Lindblom is a native of Arizona. He is a founding member of Arizonans for Responsible Growth and currently serves as Chairman of the Maricopa County Planning and Zoning Commission, Co-Chairman of the Political Affairs Committee for the Arizona Chamber of Commerce, and Vice President of Economic Development & Infrastructure at Willmeng.

As leaders gather in Scottsdale — balancing affordability and opportunity should be top of mind

Sen. Lauren Kuby, D-Tempe.

This week, attorneys general from across the country will gather in Scottsdale for the Democratic Attorneys General Association (DAGA) Policy Conference — offering an opportunity to discuss the challenges people are facing nationwide. As the top enforcement authorities for their respective states, the convening will provide a space to host conversations on topics ranging from the need to protect consumers and hold powerful interests accountable for wrongdoing to strategies for keeping their states competitive in a rapidly changing economy. However, for many Arizonans, one issue stands at the center of all three concerns: the need for access to affordable and reliable energy.

Across the state, Arizonans are facing an affordability crisis, and as seemingly everything else has gotten more expensive, new surges in energy costs have become a top concern. At the same time, the need for abundant, reliable, and affordable energy has never been more critical. As states across the country compete for massive investments from growing sectors like the tech industry and advanced manufacturing, having the power needed to fuel that opportunity is vital. 

Amid this push and pull over energy, the state’s largest utilities have seemingly acted without the best interests of Arizonans in mind. Take, for example, APS, our largest utility, which this summer filed with the Arizona Corporation Commission to raise rates on Arizonans by an astonishing 14% after an additional 16% increase the past two years. In an attempt to justify the increase, they worked to explain the spike by casting blame on data centers, manufacturing, and other industries, despite the significant role these sectors play in generating localized economic growth and job creation statewide. 

In calling their bluff, Attorney General Kris Mayes filed and was later granted a motion to intervene on behalf of Arizona’s ratepayers, arguing that the move would raise APS’s NET revenue by more than $580 million annually, “directly from the pockets of Arizona consumers and businesses.” All the while, APS’s holding company, Pinnacle West, recorded over $600 million in NET revenue just last year. 

As this plays out and Arizona’s energy prices grow increasingly unpredictable, we risk losing our competitive edge in the race for investment. Whether it’s the semiconductor boom, electric-vehicle manufacturing, or the growth of artificial intelligence and cloud computing, companies are making choices about where to expand based on access to stable, predictable power. Without it, we could see opportunities quickly move elsewhere, and, in this moment of national economic uncertainty, we cannot afford to let that happen. 

What’s more, the idea that new advanced industries are to blame simply doesn’t hold up. Recently released national research commissioned by the Department of Energy highlights that the three main factors driving energy prices today are extreme weather events, an aging grid, and the energy transition. In fact, in Arizona, the very industries that the largest utilities seek to scapegoat are the same ones investing in grid resilience and affordability.  

With Attorney General Mayes set to host a panel at DAGA on protecting consumers amid an evolving energy policy landscape, it’s opportune that we recognize the importance of this moment. Arizona’s regulators should hold utilities accountable for price gouging consumers and scapegoating residential customers. I applaud AG Mayes for her work, and I hope to see her peers take a similar approach to ensure that they protect both consumers and the economic growth powering the next chapter for their communities.

Lauren Kuby is an Arizona state senator representing parts of Tempe, Scottsdale, Phoenix, Mesa and SRP-MIC. 

Arizona governor defends utility financing bill despite APS clean energy setback

Key Points:
  • Arizona Public Service walks back plan to exit coal energy by 2031
  • Advocacy groups say the company’s delayed exit from coal defeats the purpose of bill
  • APS said the securitization legislation can still be used on other assets, including those damaged by natural disasters

Gov. Katie Hobbs and Arizona Public Service are defending a controversial utility financing bill set to take effect in September after advocacy groups say the company’s delayed exit from a coal-fired power plant defeats the purpose of the bill. 

On August 7, APS announced it would roll back its clean energy commitments — including its plans to use zero coal by 2031 — in favor of energy affordability and reliability. That move sheds new light on the utility’s efforts earlier this year to lobby for securitization legislation, citing the need for state assistance in the upcoming closure of the coal-burning Four Corners Generating Station. 

Securitization allows utility companies to transfer debt into low-interest bonds that can be sold to recoup funding from aging assets, like decades-old coal plants. But advocacy groups say APS should not have pushed for House Bill 2679, signed in May, if the company knew its coal exit would be delayed. 

“It wasn’t a good bill, and it won’t be a good law,” said Sandy Bahr of the Sierra Club. “… we said ‘you should not push this through this session … have real stakeholder meetings, a real process so we can hash out these issues.’ And APS basically made it seem like they needed it right away.”

Christian Slater, Hobbs’ spokesman, said the governor disagreed with APS’ decision to walk back its clean energy goals, but said securitization is still a necessary tool for utility companies. 

“The securitization bill signed by Governor Hobbs still helps Arizona build more clean energy while guaranteeing lower costs and delivering even more energy,” Slater said in a statement. “The latest announcement has nothing to do with the merits of securitization.”

Some lawmakers said they were led to believe APS needed the legislation sooner rather than later because of its planned 2031 exit from Four Corners. But now, the company says it plans to exit the plant “no later than 2038,” when its lease on Navajo Nation land is up.

Mike Philipsen, a spokesperson for APS, echoed Hobbs’ defense of the bill, saying it could be used to recoup costs in other situations. He also noted that APS has not yet decided whether it will operate Four Corners past 2031. 

“HB 2679 enables utilities to save customers money by refinancing costs across a range of circumstances,” Philipsen said in a statement. “While some of those circumstances involve infrastructure retired before all investment costs have been fully recovered, other circumstances are forward-looking or address facilities that may be damaged or destroyed by natural disasters, such as wildfires or extreme storms.  APS will carefully examine opportunities to use this tool to maximize bill savings for customers while ensuring continuous, reliable service.”

Groups like Chispa Arizona, the Arizona Public Interest Research Group and the Arizona Solar Energy Industries Association criticized APS for rolling back its clean energy commitments. Some groups said the company misled lawmakers about the need for securitization legislation and even encouraged Hobbs and the Legislature to repeal it. 

HB2679 faced intense opposition from Democrats, environmentalists and consumer advocacy groups during its journey through the Legislature. The bill was written by APS and given to Rep. Gail Griffin, R-Hereford, to sponsor without any stakeholder involvement or input from the Arizona Corporation Commission during drafting. 

Attorney General Kris Mayes even argued that the bill could violate the state’s constitution, and is currently reviewing its legality as part of a formal attorney general’s opinion. 

Despite the concerns, Hobbs signed the bill, noting that it had gone through a significant amendment process and was made better by her office’s input.

APS has not said whether its plan to exit Four Corners will include decommissioning the two remaining generators or selling the plant to another company or group that will keep it online. Senate Minority Leader Priya Sundareshan attempted to limit HB 2679 to retired assets in the amendment process for that reason, but was unsuccessful. 

Four Corners is the last coal-fired plant operated by APS after the closure of the Cholla Power Plant earlier this year. It has stakes in coal plants operated by other utility companies in Arizona, but some of those plants could be transitioned to natural gas in the future. 

HB 2679 won’t become law until late September, and it is currently unclear when any of Arizona’s utility companies will use it. 

APS joins gas pipeline expansion, walks back clean energy promises

Key Points:
  • Arizona Public Service to join other utilities in a natural gas pipeline expansion project
  • Its parent company, Pinnacle West, will adjust its promise to be carbon-free by 2050
  • Opponents argue out-of-state gas creates volatility, and could be bad for consumers

Arizona Public Service announced it will join in the expansion of a natural gas pipeline while also announcing it will roll back several clean energy targets. 

APS, Salt River Project, Tucson Electric Power, UniSource Energy and the City of Mesa announced Aug. 6 that they will join Transwestern Pipeline’s southwest expansion project. The pipeline is expected to bring natural gas from Texas into Arizona by late 2029.

Arizona Corporation Commission Chairman Kevin Thompson, Arizona Commerce Authority CEO Sandra Watson and Arizona Chamber of Commerce and Industry CEO Danny Seiden all celebrated the news, saying the pipeline will support the state’s growth and energy needs.

“Arizona’s energy needs are growing drastically, which is why it is so important for the state’s utilities to anticipate and prepare for the future,” Thompson said in a statement. “… I applaud APS, City of Mesa, SRP, TEP and Unisource for their commitment to maintaining this reliability and helping to secure Arizona’s energy dominance.”

Watson and Seiden said the pipeline will be a boon for Arizona’s growing business industry and the project has the backing of several businesses and industrial groups. But, Diane Brown, executive director of the Arizona Public Interest Group, told the Arizona Capitol Times that she doesn’t think out-of-state natural gas is the best move for customers.

“Reliability and affordability are rightfully top of mind for regulators, utilities and ratepayers,” Brown said. “However, investing in additional out-of-state gas does not necessarily translate to reliable energy. And, too frequently, volatile gas prices do not bode well for consumers.” 

The pipeline news came the same day as a press release from the APS parent company, Pinnacle West, announcing the company will be reducing its clean energy goals. APS previously committed to a “zero-carbon” approach to energy by 2050, but will now aim to be carbon neutral by that year.

In the press release, APS CEO Ted Geisler said the shift will allow the company to prioritize reliability and affordability. According to APS, 54% of its energy is supplied through clean resources. 

The company is also removing its interim targets, which included using 65% clean and 45% renewable energy by 2030 and zero coal usage by 2031. 

“Clean energy remains an important consideration for us,” Geisler said in the statement. “But always with a focus on a balanced energy mix that best serves reliability and affordability.”

The Arizona Solar Energy Industries Association called the change a “stunning reversal” of APS’s previous clean energy commitments and said the announcement of the natural gas pipeline was just the cherry on top.

“APS is walking away from every clean energy promise it made to the public, to regulators, to shareholders, and to the communities it serves,” AriSEIA Executive Director Autumn Johnson said in a statement.

Johnson attributed both moves to President Donald Trump’s commitment to keep coal and gas plants online across the country. Arizona’s Corporation Commission was criticized by Republicans earlier this year for not halting APS’s decommissioning process for the Cholla Power Plant after Trump suggested it should stay open. 

“This is not about reliability — it is about politics,” Johnson said in a statement. “And customers are the ones who will pay the price, both in dollars and in missed economic opportunities.” 

Electric utility lobbying efforts win big in 2025

Key Points: 
  • Electric utility companies had two bills passed to protect their financial assets in 2025
  • Companies like Arizona Public Service Co. have also donated huge amounts of money across Arizona
  • Some officials warn their financial influence could harm Arizonans

Arizona’s largest electricity provider notched two huge financial wins in the 2025 legislative session with last week’s approval of new laws by Democratic Gov. Katie Hobbs. 

The victories by Arizona Public Service Co. can largely be credited to the utility’s years-long efforts to curry favor with state officials and local politicians and community and business groups across the state. 

Earning that influence involves APS, or its corporate parent Pinnacle West Capital Corp., giving millions of dollars in donations to politicians, business groups and through the company’s well-organized community giving operation, which doles out money to a broad range of entities like food banks, schools and many others. 

Hobbs alone has benefited from at least $350,000 in Pinnacle West donations to special funds for her inaugural and legal bills. According to filings with the Arizona Secretary of State, the publicly traded company, worth nearly $11 billion, has donated to scores of sitting lawmakers’ political campaigns. 

The company is unapologetic about its role in the legislative process and in spreading around cash.

“We engage in the public policy process for the benefit of our customers, shareholders, employees, communities and other stakeholders,” said spokesman Mike Philipsen.

“We advocate for sound, forward-looking public policy that creates shared value for our business, our community and a vibrant Arizona economy,” he said. “We believe that this participation helps to create more robust and better-informed policy outcomes.”

The resulting good will from these contributions allows APS to mobilize support for its proposals in the Legislature and tap into a broad range of people and politicians outside the Capitol. 

And it paid off big last week. Hobbs signed a bill shielding APS from most lawsuits if its equipment sparks a wildfire and a second allowing it to issue bonds to pay itself for assets like old power plants it needs to sell at a loss.

Issuing bonds will mean a new, separate charge will be added to monthly bills paid by 1.4 million Arizona households or businesses. And the liability protection could save APS billions of dollars if a blaze its equipment sparks destroys a town like Prescott or Show Low. 

That lawsuit number isn’t speculation. Utilities in Hawaii, California and Oregon have paid out tens of billions of dollars to victims of wildfires in the past decade. Although Arizona has not had a similar event so far, APS was concerned it could be the next company to face a threat to its business in the event of a major wildfire. 

Both bills affect other regulated utilities, including Tucson Electric Power, public power providers like Salt River Project and smaller co-ops. They signed on in support and lobbied for the measures.

However, it was mainly APS that initially crafted the measures, garnered the support of the other utilities, and deployed its numerous lobbyists to sell them to lawmakers.

“It shows the kind of political influence they have,” said Sandy Bahr, director of the Sierra Club’s Grand Canyon chapter.

“It’s especially concerning, however, because of what they represent — they are a monopoly utility,” she said. “If we don’t like what they’re doing, how they’re spending our ratepayer dollars, we can’t just go somewhere else for our electricity unless we want to move.”

That leaves state oversight to regulate them.

“We rely on government entities to help hold them accountable – the Corporation Commission, the Legislature and the governor,” she said, “and that’s just not happening.”

Bahr, whose group joined many others in opposing the bills, said the regulated utility’s influence was readily apparent as the proposals moved through various hearings. She noted that, following one Senate committee hearing, there were so many utility lobbyists — most from APS — that she could hardly get through the hallway.

The first new law protects APS from most lawsuits if their power lines cause a fire, even if it obliterates a large town. Initially, the measure gave such sweeping protections from lawsuits that it almost certainly ran afoul of a provision in the state constitution that says lawmakers can’t limit the right to sue or recover damages. 

Class action lawsuits — where community members can band together to sue — would have been banned, and the right to recover for things like lost businesses or the use of a destroyed car would have been barred. And the level of proof needed to win a suit claiming a utility caused a fire would have been raised to near-unattainable levels. 

Minor changes in the House and a major Senate amendment restored many of those rights, but, as signed by the governor, APS still got a lot of what it wanted.

In exchange for creating and largely following a “Wildfire Mitigation Plan,” utilities get the assurance they can’t be sued for failing to take steps to shield the public from equipment-sparked wildfires. But the liability protections remain even if a utility doesn’t completely follow its own plan to minimize fire danger. 

“They are now protected from a lot of wildfire damage liability,” said Sen. Priya Sundareshan, D-Tucson, the Senate minority leader.

Sundareshan voted against House Bill 2201, the wildfire liability measure, but several minority Democrats joined with nearly all Senate Republicans in backing the measure. The same was true in the House, where most Democrats and almost all majority Republicans voted for the liability shield bill.

The bonding measure, called “securitization,” was sharply opposed by Senate Democrats and various health, environmental and consumer advocacy groups. That was mainly because APS wanted to sell their stake in the coal-fired Four Corners Power Plant in northwestern New Mexico rather than shutting down the polluting plant, operated by APS but owned by a consortium that includes APS, a company owned by the Navajo Nation, SRP and Tucson Electric Power.

The plant was supposed to be closed by APS in 2031, but with the securitization law in place, it gives the owners the ability to sell it at a loss, recover their investments through bonds paid by ratepayers and allow the new owners to keep running it.

“This plays into Trump’s coal agenda,” Sundareshan said in an interview before Hobbs approved the measure. She pointed to executive orders signed by the president that encourage continued use of coal and could lead to the restarting of old, polluting coal plants in Arizona and beyond.

“Why should we enable actions that support Trump’s coal agenda?” she asked.

All Senate Democrats opposed the bonding measure, but it earned unanimous support from GOP senators. In the House, all 35 Republicans voted yes along with 10 of 25 Democrats. 

The coalition opposed to the securitization bill — usually aligned with Hobbs — issued a blistering news release after the Democrat signed the measure.

“HB2679 saddles Arizona families with the cost of bad corporate decisions, keeps outdated coal plants running, and offers zero transition support to impacted communities,” JoAnna Mendoza of VetsForward wrote in the news release. “Our communities deserve cleaner air, not corporate bailouts disguised as policy.”

And, in a clear slap at the governor, she said, “Leadership means standing up to powerful interests, not bending to them.”

In addition to the lack of a requirement for plants to be shut down if utility customers are forced to pay off bonds, opponents are concerned that utilities can use bonds for unlimited reasons.

“The bill will benefit Arizona’s largest monopoly electric utilities — APS, TEP, and SRP — to the detriment of ratepayers,” the news release said.

Hobbs issued a lengthy defense of her decision to sign the bill giving utilities the right to issue bonds their customers would pay off. She said she acted to help constituents who complained about high power prices and negotiated with lawmakers to address concerns raised by the opposing groups.

“That’s why I stepped in and fought to make HB2679 a common sense, middle of the road solution for Arizona families,” she said.

“HB2679 will lower costs for everyday Arizonans, improve grid resiliency by growing our energy economy, and ensure utilities are being held accountable to deliver cost savings to Arizonans,” Hobbs continued. “I heard the concerns from clean energy and consumer protection advocates who opposed the original version of this bill, and I made it better.”

Bahr, the Sierra Club’s Arizona director, said the wildfire liability bill and the bonding measure showed just how powerful APS is in the state.

“It is concerning that they are able to spread dollars around in such a way that they’re able to snap their fingers and everyone comes running,” Bahr said. “And that’s on top of being able to have an army of lobbyists to work the bills.”

Philipsen, asked earlier about the utility’s efforts to pass the bills, defended its actions.

“We routinely work with elected representatives to advocate for legislation that impacts APS, our customers or our rates,” Philipsen wrote.

But Bahr called the utility’s ability to get what it wants “really disturbing.”

“I don’t know how to rein them in,” she said. “If the Corporation Commission isn’t going to do it, the governor isn’t; I guess it’s up to the attorney general because the other branches are just not doing it.”

Hobbs signs utility financing bill, foes say legal challenge could follow

Key Points:
  • Gov. Hobs signs bill allowing utilities to transfer debt to bonds
  • Bill was written by Arizona Public Service
  • Opponents say more oversight of securitization process is needed

Gov. Katie Hobbs signed a controversial utility financing measure into law on May 13, despite calls for a veto from environmental groups and some Democrats in the Legislature. 

House Bill 2679 allows utility companies to transfer debt into low-interest bonds that can be sold to recoup funding from aging or inefficient assets in a process known as securitization. The bill was written by Arizona Public Service and given to Republican Rep. Gail Griffin, R-Hereford, to sponsor. 

The legislation has been a point of contention this session and drew the ire of current and former Arizona Corporation Commission members, Attorney General Kris Mayes, Senate Minority Leader Priya Sundareshan and several environmental groups. 

In a statement released May 13, Hobbs said she worked with a bipartisan group of lawmakers on the bill to take it from a “concerning piece of legislation” to a “common sense, middle of the road solution.”

“HB2679 will lower costs for everyday Arizonans, improve grid resiliency by growing our energy economy, and ensure utilities are being held accountable to deliver cost savings to Arizonans,” Hobbs said. “I heard the concerns from clean energy and consumer protection advocates who opposed the original version of this bill, and I made it better.”

The bill has been a headache for lawmakers since it was introduced in January. It first received pushback from the all-Republican Corporation Commission in February, after commissioners said they were not part of the drafting process and were not made aware of the bill until it was filed. 

In early March, the ACC voted to make its position on the bill “neutral,” with several commissioners expressing frustration with APS and Republican lawmakers for not consulting with them prior to filing the legislation. 

A few weeks later, former commission Chairman Bob Burns, a Republican, sent a letter to lawmakers urging them to hold the bill until the ACC could conduct an evidentiary hearing on securitization. In early April, Mayes, a former commission chair, sent a letter to lawmakers saying she believed the bill could violate the ACC’s constitutional authority to set utility rates.

Despite the backlash, lawmakers pushed forward on the bill and added significant amendments to it in both the House and Senate. Opponents say the changes made were good, but still do not provide enough oversight of the securitization process and do not ensure that utility companies cannot securitize coal plants that remain in operation.

Amendments to the bill resolved some sticking points by removing the ability to securitize unrecovered fuel costs and limiting securitization to utility infrastructure in use at the time of the bill’s passage. 

Sundareshan said she felt “extreme disappointment” with the governor for signing the bill because of all the concerns brought to her office and the rushed legislative process the measure went through.

“The plant that this seems to be intended to allow APS to securitize … isn’t even scheduled for retirement for a number of years,” Sundareshan said, referring to the Four Corners Power Plant in New Mexico. “There’s time in which we could have gotten this right. The rush to sign (HB2679) is really inexplicable.”

Mayes’ spokesperson Richie Taylor said the attorney general still has concerns about the bill’s constitutionality, despite Republican lawmakers claiming amendments had resolved those issues. 

“Once the ACC greenlights a bond’s terms, it cannot later modify how those bond charges are passed on to customers,” Taylor said in a statement “This effectively hinders future commissions from performing their core regulatory duties over utilities. And (HB2679) enables ratepayer subsidization of utilities’ unprofitable investments by allowing a utility to sell a power plan once ratepayers have paid its remaining book value, letting the utility keep all sale proceeds.” 

The ACC has the exclusive authority to set utility rates under the state Constitution and the Legislature cannot modify that authority. A spokesperson for the ACC did not immediately respond to a request for comment on the commission’s current position on the bill. 

Sundareshan said opponents may challenge the legislation in court or ask Mayes to formally weigh in on its legality, but no concrete plans have been formed yet. 

The signing also comes after reporting from Capitol Media Services found APS’ parent company, Pinnacle West, donated $100,000 to a secretive legal defense fund Hobbs used to win election challenges from her former gubernatorial opponent, Kari Lake. Pinnacle West also donated $250,000 to Hobbs’ inauguration fund in 2023 and recent campaign finance reports show a $5,800 donation from the company’s PAC to Hobbs’ campaign in January. 

Not everyone was disappointed with the bill though. The Arizona Chamber of Commerce and Industry called it a “huge win for Arizona ratepayers” in a post on X on May 13.

Griffin, the bill’s sponsor, also celebrated the passage in a statement released May 14.

“By leveraging innovative financing tools, Arizona’s investor-owned utilities like APS and TEP, and public power entities like SRP, AEPCO and rural electric cooperatives, can lower consumer costs and free up capital to invest in new energy generating resources and grid upgrades,” Griffin said. “It’s a smart, forward-looking way to ensure Arizona’s utilities can keep up with rising demand.”

Arizona utilities law awaiting Gov. Hobbs’ signature is win for affordable, reliable energy

Matthew Gonzales

The Arizona Senate and House of Representatives have struck a victory for affordable, reliable and cleaner energy by sending House Bill 2679 to Gov. Katie Hobbs’ desk for her signature.

HB2679 is commonsense legislation that will enable the use of utility securitization in Arizona. The tool, which is authorized for use in 33 other states across the country, allows electricity providers to refinance assets like aging power plants and infrastructure damaged by natural disasters in order to save customers money on their utility bills. This is similar to when you refinance your mortgage at a lower interest rate to save money every month.

During consideration of the bill, opponents went to great lengths to mischaracterize this legislation, claiming that the proposal would allow utilities to circumvent regulators and be a “blank check for utilities”. These detractors either do not understand what is actually in the bill or are purposefully making specious claims. In reality, HB2679 was crafted with strong safeguards and oversight to guarantee that ratepayers benefit from any future securitization transaction executed in Arizona.

First, HB2679 does not bypass the normal ratemaking process for utilities. On the contrary, the bill requires electric companies like Arizona Public Service and Tucson Electric Power to apply to the Arizona Corporation Commission for review and approval before they can ever proceed with a securitization transaction. Utilities cannot securitize costs without  the commission’s approval, which under HB2679 would have to result from a formal hearing process.

Second, as part of the commission’s requirements before it can approve a securitization transaction, they must find that the transaction is just, reasonable and in the public interest. Most importantly, that will require the commission to determine that a securitization transaction will save customers more than traditional utility company financing. In other words, the only way for a securitization transaction to ever be approved is if the Commission finds that the transaction will actually reduce customer utility bills.

Lastly, the legislation does not give utilities a blank check. On the contrary, the bill requires utilities to completely give up their profit on any costs they securitize. This means that the only motivation for utilities to utilize the tool is to save customers money when unique circumstances arise. 

During her time in office, Hobbs has been laser-focused on delivering relief to Arizona families struggling with challenges related to higher costs of living. By signing HB2679 into law, she will ensure Arizona’s utilities have an important financial tool at their disposal that will enable them to keep costs as low as possible for their customers. We applaud Republicans and Democrats for coming together on this important legislation and look forward to HB2679’s enactment into law.

Matthew Gonzales is the Southwest Regional Director for Consumer Energy Alliance.

The Arizona Corporation Commission’s duty is to us, not utilities

Ylenia Aguilar

Arizonans know extreme heat can be deadly, so it was incomprehensible this week when Arizona Corporation Commissioner Nick Myers blamed an elderly woman’s heat-related death last May on her and her family, not the power shutoff that left her without air conditioning during a brutal heatwave.

Instead of demanding answers about why her electricity was disconnected or how future tragedies can be prevented, Commissioner Myers claimed that neither the Commission nor the state’s utility companies bear any responsibility to protect vulnerable customers during extreme weather. His post on X showed a callous disregard for people’s lives, and for the wellbeing of his constituents. It wasn’t just tone-deaf, it was deeply irresponsible, and dangerously out of touch. The Commission is meant to protect the best interests of our communities, but Commissioner Myers made clear where his loyalties lie.

Utilities like Arizona Public Service (APS) are monopolies with a responsibility to ensure their ratepayers, particularly vulnerable individuals, have access to reliable and affordable power. It’s not just about paying bills — it’s about protecting lives. Utilities like APS do offer programs to help low-income customers who are struggling to pay their bills, but those programs can be complicated and difficult to navigate. Many low-income individuals, veterans, people living on fixed incomes and elderly residents struggle to access these resources or may not even be aware of them. Commissioner Myers criticizes the very existence of these programs, and blames the vulnerable ratepayers who have a hard time accessing the programs. Disconnecting power during extreme heat is dangerous, and it’s the Commission’s  responsibility to ensure that utilities prevent this harm by ensuring that vulnerable communities are protected.

Myers’ post also ignores the fact that the Commission’s role is to regulate utilities to serve the public good, not to defend corporate practices. When we look at the case of Kate Korman, who tragically died after her power was shut off, we see how existing protections are insufficient. While programs exist to help customers, they should not be used as an excuse to justify putting lives at risk by allowing power shut offs during extreme weather conditions.

Blaming families for not reaching out to take advantage of programs fails to address the broader issue: These programs are often complicated and inaccessible to those who need them most. Additionally, not everyone qualifies for assistance, and many don’t have the means to keep up with rising utility costs. It’s crucial that utilities maintain power, particularly during extreme conditions, and that they be held accountable for any harm caused when they fail to do so.

We must recognize that extreme heat is a problem that affects all of society, not just those who can afford to pay their bills. Arizona’s most vulnerable residents — low-income families, the elderly, and communities of color — should not be left to suffer during extreme heat. It is the moral obligation of the ACC to prioritize human life over corporate profits and to ensure that policies are in place to protect all Arizonans, no matter their income.

As heat advocate Stacey Champion has said repeatedly, it is time — past time — for the Commission to enact stronger regulations that prevent power shut offs during extreme weather conditions. The solution is simple: Stronger protections need to be in place to ensure that vulnerable residents are not left without the resources they need to survive.

The death of Kate Korman is a tragic reminder of the consequences of neglecting our most vulnerable citizens. We cannot allow these preventable tragedies to continue.

Ylenia Aguilar is a Senior Organizer with the Sierra Club’s Beyond Coal Campaign.

Utility financing bill on Hobbs’ desk, some Democrats urge veto

Key Points:
  • A bill allowing public utility companies to securitize assets passed out of the Legislature
  • Republicans say the governor will sign the bill with new amendments
  • Some Democrats say the bill does not have enough safeguards for utility customers

A controversial public utility company financing measure goes to Gov. Katie Hobbs, and while Republicans say they are confident she’ll sign it, some Democrats are urging her not to.

House Bill 2679 passed a final vote in the House on May 7 after being amended in the Senate a day earlier. However, critics of the measure, which would allow utility companies to transfer debt into low-interest bonds that can be sold to recoup funding from aging or inefficient assets, say it still has significant issues.

The bill, sponsored by Rep. Gail Griffin, R-Hereford, has been hotly debated and sparked conflicts between lawmakers and the Arizona Corporation Commission. It split both the Republican and Democratic caucuses during different floor votes, but the Senate only gave it final approval on party lines. 

Two Senate Democrats who are cosponsors of the bill, Flavio Bravo and Catherine Miranda, ultimately voted against it. But in the House, several Democrats flipped from ‘no’ votes to ‘yes’ votes, with 10 voting alongside Republicans to pass the bill on May 7. 

If Hobbs signs the bill, she could be running afoul of members of her party, including Senate Minority Leader Priya Sundareshan. Hobbs’ office typically does not comment on pending legislation and has declined to comment on this specific bill in the past. 

Proponents of the bill, like Griffin and most Republicans, say it will help utility companies like Arizona Public Service and Salt River Project lower customer costs. The Arizona Chamber of Commerce and Industry has urged lawmakers to support it, saying it will also help attract businesses to the state.

Opponents, like Sundareshan, Attorney General Kris Mayes and environmental groups, say the bill lacks oversight and guardrails that will allow the Corporation Commission to ensure utility companies only use securitization when it is in the best interest of customers. Mayes has even said the bill might infringe upon the constitutionally-granted ratemaking authority of the ACC.

Sen. T.J. Shope, R-Coolidge, sponsored an amendment to the bill in consultation with the Governor’s Office, Senate President Warren Petersen and the Corporation Commission that he says addresses concerns raised by the commission, former commissioners and other stakeholders.

“It will be signed,” Shope said while discussing the bill on the Senate floor on May 6. 

Shope’s amendment did address some problems that Democrats and environmentalists said made the bill unworkable, including removing the ability to securitize unrecovered fuel costs and limiting securitization to current assets with a few exceptions. 

And Griffin said she believes the amendment addressed the constitutional concerns raised by Mayes.

“The Commission’s constitutional ratemaking authority is reinforced with explicit discretion for approval, modification and rejection of any plan that is not acceptable by the Commission,” Griffin said. 

Sundareshan, D-Tucson, and fellow Democratic Sen. Rosanna Gabaldon, D-Green Valley, introduced their own amendments to add more limits to the bill, but those amendments failed in the Senate. Sundareshan’s amendments would have limited securitization to retired assets and would have prevented utilities from securitizing power plants they plan to sell to another company that would keep the plant active.

Sen. Lauren Kuby, D-Tempe, speaking on behalf of Sundareshan as she was absent from the floor May 6, said the amendments were proposed in good faith. 

“These amendments that we’re moving here today, they are truly an attempt to make the bill better,” Kuby said. “We’re not opposed to the tool of securitization … In fact, it’s been used across the country, but not in the case where we don’t have these guard rails. It’s very concerning the way the utilities are pushing to use securitization in Arizona. Our ratepayers must be protected.”

Nevertheless, Republicans voted against all three amendments offered by Democrats. Shope also disagreed with Democrats, who said that not enough stakeholder input was sought to draft or amend the bill.

“I think my colleagues on both sides of the aisle know that this has been stakeholdered, this has been discussed, this has been worked out, and we all have come to this conclusion that — with the Shope floor amendment — the bill is what it is, and we have worked it out,” Shope said during his final comments on the amendment.

After the Senate passed the bill, Sundareshan told the Arizona Capitol Times that she and Democrats were not invited to participate in those stakeholder meetings.

“I’m not aware who exactly was being stakeholdered with, but certainly my caucus was not meaningfully involved,” Sundareshan said. “And I like to point out that I am the member of the Senate Democrats who is an energy and environmental lawyer, so I would think that I should be consulted and maybe engaged on some of this.”

On April 29, Sundareshan joined former Corporation Commissioners Bob Burns and Sandra Kennedy in urging a veto of the bill if Republican amendments did not assuage their concerns. She hopes the Democratic opposition will encourage the governor to consider a veto. 

“I hope that the governor will take notice of the concerns that our caucuses are raising, and that the environmental communities are raising, that the ratepayer communities are raising, that the attorney general is raising, and so even though (Shope’s) communication with (the Governor’s Office) may have indicated that she is willing to sign it, I think that this is additional knowledge that may not have been made public before that they should take into account,” Sundareshan said.

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