Arizona Governor Hobbs’ Executive Order (2025-13) with a goal of shortening bureaucratic delays related to infrastructure generation and transmission, promote energy infrastructure development, and by doing so, mitigate energy costs for residential ratepayers.
It sets up the Arizona Energy Promise Taskforce, directs state agencies to study affordability, and sets clear expectations that energy growth must not lead to rising costs for families.
For many Arizona families, electricity is already the second-biggest household expense—only rent exceeds it. Food often ends up taking a back seat. Rising electricity costs are not just an issue of comfort or budget; they impose real health risks.
As Arizona plans for more capacity to meet a projected ~40% increase in peak electricity demand over the next 15 years, there is intense interest in new generation sources, including those fueled by methane (natural gas) or similar fossil fuels.
Beyond making climate change worse focusing on methane burning rather than renewables, methane-based generation infrastructure requires large capital investment. When these costs are built into utility rates, residential customers, especially those least able to pay, end up footing the bill.
Public policy must prevent this kind of cost shift. When governments or utilities subsidize capital costs for fossil fuel infrastructure to pay for generation for data centers through ratepayer bills, it makes everyday households subsidize large data center users – the very entities that are making the new generation facilities necessary.
We already know that the Arizona Corporation Commission doesn’t care about ordinary residential ratepayers, which is why it was important for the Governor to step in to the extent that she can.
- The Order calls for energy affordability studies to find opportunities to reduce costs for consumers.
- The Taskforce must plan to enable energy infrastructure growth without pushing up energy costs.
- Streamlining siting and development on state land could lower the non-fuel costs of projects—those are often shareable savings that can help avoid rate increases.
- No hidden subsidies: Capital, maintenance, and fuel costs of new generation should not be shifted to households unless there’s a clear benefit and fair allocation.
- Favor clean or renewable sources: Where possible, invest in renewables whose fuel cost is zero and whose environmental cost is lower—both for health and future rate stability.
- Transparency and accountability: Let families see what they’re being charged for—and whether rate increases are driven by necessary costs or by poor planning.
Governor Hobbs’ action is a promising step. But ensuring that ratepayers, especially low-income families, don’t end up subsidizing costly, polluting methane plants for data centers is essential for an energy future that is both affordable and fair.