Latest news with #CorporationCommission
Axios
05-08-2025
- Business
- Axios
Data centers could boost rising electricity costs
Electricity costs are rising nationwide, including in Arizona, and could get even higher for some amid the explosion in data centers powering AI and more. Why it matters: Surging power bills could further stress many Americans' budgets as pretty much everything else also gets more expensive. By the numbers: The nationwide average retail residential price for 1 kilowatt-hour of electricity rose from 16.41 cents to 17.47 cents from May 2024 to May 2025, per the latest available data from the U.S. Energy Information Administration, a gain of about 6.5%. Some states had large increases, such as Maine (36.3%) and Connecticut (18.4%), while just five states had decreases. State of play: Arizona had one of the smallest electricity cost increases during that time, from 15.49 cents to 15.76 cents (1.7%). The intrigue: The Corporation Commission is preparing for the strain that data centers are expected to put on Arizona's energy grid. Possibilities include higher energy rates for data centers to pay for the extra infrastructure and power generation facilities they could necessitate, or allowing them to generate their own power. Gov. Katie Hobbs vetoed legislation this year that would've waived some environmental and zoning regulations to make it easier for large industrial power users like data centers to place small modular nuclear reactors at their facilities. Arizona Public Service, Salt River Project and Tucson Electric Power this year announced that they're exploring the possibility of building a nuclear plant. Zoom in: There are several plans for massive new data centers in Arizona, including a 3,330-square-foot, $33 billion "data center corridor" in Eloy, which would be among the largest in the U.S. Project Blue, a proposed data center in Tucson, has faced public backlash over concerns about energy and water use. Zoom out: Electricity prices vary regionally and have many influences, including basic supply and demand, fuel rates and infrastructure costs. Yet many analysts point to power-hungry data centers as a driver of rising rates, especially in data center hotspots. That's partly because of data centers' immediate demand for energy, but also because grid operators are investing in new transmission lines and other gear to handle their expected proliferation — and passing those costs along to customers.
Axios
11-06-2025
- Politics
- Axios
Arizona Freedom Caucus slate looks to make a splash in GOP primary
A slate of GOP candidates recruited and backed by the Arizona Freedom Caucus is likely to shake up next year's Republican primary. The big picture: The far-right Arizona Freedom Caucus, a coalition of GOP lawmakers led by state Sen. Jake Hoffman (R-Queen Creek), has drafted several candidates for next year's statewide races. The caucus finalized its lineup Tuesday when state Reps. Ralph Heap (R-Mesa) and David Marshall (R-Snowflake) launched Corporation Commission campaigns. Hoffman, who is also a Republican National Committee member for Arizona, told reporters part of his job "is to help find good, strong candidates that match the Republican Party platform, and then to recruit them … [for] every office from the school board to the dog catcher to statewide races." State of play: The Freedom Caucus slate includes: Alexander Kolodin, a GOP state representative from Scottsdale, is running for secretary of state, and so far is the lone Republican looking to unseat Democratic incumbent Adrian Fontes. Kimberly Yee, the current state treasurer, is challenging incumbent Tom Horne in the GOP primary for superintendent of public instruction. On Tuesday, the caucus backed Heap and Marshall in their bids to unseat GOP incumbents Nick Myers and Kevin Thompson in the Corporation Commission race. 1 big race: The Arizona Freedom Caucus also enthusiastically supports U.S. Rep. Andy Biggs, who's running for governor. Meanwhile, the caucus isn't recruiting candidates for attorney general or treasurer. Hoffman said last month he's a "big fan" of Senate President Warren Petersen, who's running for attorney general. Elijah Norton is the sole GOP candidate for treasurer. Hoffman said he'll help Norton to ensure he's "pointed in the right direction." The intrigue: "The grassroots are on fire" for Freedom Caucus candidates, who should expect "a ton of grassroots support," Hoffman told reporters Tuesday. What we're watching: Biggs is also backed by conservative youth organization Turning Point USA, a Freedom Caucus ally whose political action committee recently announced it would spend $500,000 on his campaign advertising.
Axios
16-04-2025
- Business
- Axios
Data center boom tests Arizona's power grid
Data centers consume an inordinate amount of electricity, and the Corporation Commission is trying to figure out how to cope with the demand. The big picture: With low energy costs and few natural disasters, the Phoenix metro area has become one of the top data center markets in the U.S. Those buildings house computer equipment for data storage and are critical for companies including Amazon and Google and technologies such as AI. Driven by the growth of AI and other technologies, data centers are increasing energy usage not only in Arizona but across the U.S. Why it matters: Arizona has enough energy to meet its current needs, but that may not be the case in three to five years, Corporation Commission chair Kevin Thompson told Axios. "That horizon is what I'm concerned about. That's what keeps me up at night," he said. By the numbers: Arizona data centers could more than double their energy usage by 2030, according to a 2024 report by the Electric Power Research Institute, consuming up to 16.5% of the state's total electricity. What they're saying: "It's something that Arizona needs to deal with in order to make sure we can continue our economic development position and keep growing and creating high-tech jobs," said Court Rich, an attorney with Rose Law Group who specializes in energy and utility issues. State of play: Thompson earlier this month started a formal review, known as opening a docket, on data centers, the first step in allowing utilities, other stakeholders and the public to weigh in on the subject. Like other customers, data centers pay for the energy they consume. But the amount of power they use could necessitate new infrastructure and generation facilities. Thompson compared it to a city requiring a developer to pay for streets, sidewalks and gas lines for 500 new houses. He said one possibility is that the commission could impose special higher rates for data centers to cover the costs. Between the lines: Thompson said the commission could also look at permitting data centers to generate energy themselves to offset increased demand. As battery technology improves, they could increasingly rely on solar power with battery backups. State Rep. Michael Carbone, R-Buckeye, sponsored legislation that would loosen state regulations so data centers and other major industrial energy users could place small modular nuclear reactors at their facilities, which Thompson said could be a potential solution. Zoom out: Arizona Public Service, Salt River Project and Tucson Electric Power announced in February they're exploring the possibility of building a nuclear plant that likely wouldn't be online until the early 2040s.
