Key Points

• The ACC oversees regulation of state utility companies.
• There has been unusual friction this session between commissioners and lawmakers.
• Legislation imposed on ACC causing tensions.

Tensions are high between the Legislature and the Arizona Corporation Commission this session as lawmakers attempt to address issues like residential utility costs, energy reliability and wildfire mitigation through legislation. 

The ACC, which oversees the regulation of the state’s public utility companies, has been the subject of many bills aimed at providing solutions or guardrails to ensure utility ratepayers are protected from extreme weather events, rising utility costs and power outages. However, commissioners say they haven’t been included in the drafting of some bills, many of which place additional burdens on them and their staff. 

Those familiar with the ACC say the back-and-forth between the two entities is unusual — especially given that both are currently controlled by Republicans — but not unheard of.

The friction between the two was on display during an open staff meeting of the ACC on March 12. Commissioners expressed frustration with several Republican lawmakers and Arizona Public Service for attempting to push through legislation without giving the ACC enough time to provide feedback. 

“I can’t stress how frustrating it has been to have such an incredible, complex piece of legislation like this that got introduced to the Legislature and APS never even shared a copy of that bill or the language with the commission in advance,” ACC Chairman Kevin Thompson said of one bill at the March 12 meeting. “Especially when we’re being asked to carry such a heavy load and responsibility.”

Thompson was referring to legislation introduced by Rep. Gail Griffin, R-Hereford, that would require utility companies to develop wildfire mitigation plans and submit them to the ACC for approval. That bill, and another introduced by Griffin, were written by APS without commissioners participating in the drafting process — or even being shown the bills — until they were filed. 

The ACC sent letters to lawmakers regarding the wildfire mitigation bill and another bill related to securitization of utility assets detailing their concerns and lack of involvement. Commissioners also voted to formally oppose several bills during their March 12 meeting. 

Rep. Justin Olson, R-Mesa, received the harshest criticism from members of the ACC for bills he is running this session. Olson served on the ACC before being elected to the House in 2024 and has brought his experience with the ACC to his legislation.

Olson introduced a bill to close the “revolving door” between utility companies and the commission. In its original form, the bill would have required commissioners or employees of the ACC to wait four years before working for a utility company and employees of a utility company to wait two years before working for the ACC. 

During the ACC meeting on March 12, Thompson said the bill “was so poorly written and so ill-conceived that I thought surely (it) would never even make it to a hearing.”

“A high schooler could have probably done a better job in actually writing this if they would have just used A.I. and a little bit of Googling,” Thompson continued.

He also personally attacked Olson, saying the lawmaker had done nothing to improve working conditions at the ACC and had learned nothing during his four-year tenure as a commissioner. 

Thompson told the Arizona Capitol Times that he has a lot of respect for Olson, but he “expected more from him” as a former commissioner. He said he is particularly frustrated with Olson’s bill because it targets ACC staff. 

“I spoke with Representative Olson, and talked to him about … the impact that (the bill) would have on the commission, and the impact that it would have on the employees,” Thompson said. “And his response was, ‘Well, that wasn’t my intent,’ but yet he didn’t do anything to amend his bill. And that was, for me, the frustrating part, because we offered to provide amendments to make his legislation better, but it fell on deaf ears.”

Olson’s bill ultimately failed in the House on March 13. After the vote, Olson said he did not agree with commissioners’ characterization of the bill as poorly written.

“The bill accomplished what it was designed to accomplish, and that is to prevent regulatory capture,” Olson said. “Now I can appreciate that the commission may be opposed to having these additional guardrails placed upon them. That doesn’t mean that it’s not the right policy.”

On a motion for reconsideration on March 19, Olson proposed an amendment to the bill on the House floor that significantly scaled back the policy. Now the bill only requires commissioners to wait two years before being hired at a utility company and any mention of staff has been removed.

Andy Kvesic served as the ACC’s chief counsel and legal division director from 2017 to 2019 and said commissioners and lawmakers had a “good working relationship” during his time at the commission.

“There’s a natural tendency of the Legislature to want to get involved and want to influence certain policy decisions,” Kvesic said. “But it never crossed the line in my time where we were locking horns with the Legislature.”

Kvesic attributed the working relationship between the two bodies to members of the commission having experience in the Legislature as former lawmakers, where they developed good relationships with members of leadership and the Governor’s Office. 

Sandy Bahr, a longtime lobbyist with the Sierra Club, said the ACC has not been pushing back on the Legislature in recent years and she was surprised to see it happening during this session, given that both entities are controlled by Republicans.

“I am a little bit surprised by that, because it seemed like they should be pretty close to being on the same page,” Bahr said.

She said she was also surprised that the ACC waited so long to take a stance on bills moving through the Legislature. By the time commissioners voted on their position, many bills had already moved out of their chamber of origin. 

“These bills have been around for a while, starting in January and they’re just getting around to opposing some of Olson’s bills,” Bahr said. “Why didn’t they speak up sooner?”

Thompson said the ACC has been largely uninvolved in legislation during the two years he has been at the commission. He attributed this year’s involvement to the number of bills introduced this session related to the commission and the sectors it regulates. Thompson said commissioners have been made aware of at least 25 bills that deal with public utility companies, securities, business registration or the ACC itself. 

“I think because (of) the number of bills that were written that were impactful, not only to the organization, but to the ratepayers as well, I think there was a feeling from all of the commissioners that we needed to do a better job of communicating our concerns, our issues with some of this legislation,” Thompson said.

He noted that not all interactions with lawmakers have been bad. Thompson said Griffin has been very open to meeting with the ACC and said Rep. Jeff Weninger, R-Chandler, collaborated with commissioners and staff on a bill extending funding for the ACC’s online filing system for businesses.

“What I would love to see is better coordination and communication with our counterparts at the Legislature,” Thompson said. “Consider us your experts on securities and your experts on energy-related matters. Our doors are always open.”