Trump-Era Energy Policies Shape Arizona Corporation Commission

The Arizona Corporation Commission (ACC) is working to support President Donald Trump's energy policies while managing the state's rapidly growing electricity demands.

During the first year of President Trump's second term, the ACC has approved nearly 1,000 megawatts of new natural gas plants and supported the Transwestern Pipeline project, which will bring natural gas from West Texas to Arizona by late 2029.

These projects aim to ensure reliable electricity as the state's population and business sectors continue expanding.

The ACC recently approved an energy agreement allowing Tucson Electric Power to serve a major new data center. Business groups, including the Arizona Chamber of Commerce, supported the deal, saying it ensures large industrial customers pay standard rates without subsidies from existing ratepayers.

Additionally, nuclear power is becoming a priority for both Arizona and the Trump administration. In May of last year, the ACC held its first workshop on expanding nuclear energy in Arizona.

Vice Chairman Nick Myers noted that with growing demand from data centers, industrial facilities, and residential areas, nuclear power could help meet growing needs.

"We’ve been working closely with the utilities and the Trump administration for some time to expand Arizona’s natural gas infrastructure, so I’m pleased to see this timely announcement of the Transwestern Pipeline Desert Southwest Expansion Project," Nick Myers expressed.  "Additional natural gas infrastructure is essential to meeting the state’s growing energy demand in the years ahead."

This supports the Trump administration's plan to grow U.S. nuclear power from about 100 gigawatts today to 400 gigawatts by 2050.

Major Beneficiaries

Arizona's three major utilities are Arizona Public Service (APS), Tucson Electric Power (TEP), and Salt River Project (SRP), and each has applied for a federal grant to identify potential sites for new nuclear reactors.

Currently, Arizona generates about 50% of its electricity from natural gas and coal, 29% from renewable sources like solar and wind, 11% from nuclear power, and 9% from battery storage facilities.

However, the Commission's recent decisions have drawn mixed reactions. In April 2024, they approved a $460 million rate increase for APS customers, adding around $10- $12 per month to bills. They also added new fees for rooftop solar customers and discontinued funding for communities affected by coal plant closures.

As Arizona's energy infrastructure continues expanding, the Commission's approach aligns with the Trump administration's national energy policies that emphasize domestic production across multiple energy sources.