Governor Katie Hobbs delivering the 2025 State of the State Address on the floor of the Arizona House of Representatives at the Arizona State Capitol in Phoenix, Arizona. (Gage Skidmore / Flickr)
By Reagan Priest | Arizona Capitol Times
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.
