Sierra Club Report Accuses Arizona Regulators of Utility Bias Harming Ratepayers

Phoenix — The Sierra Club today published a new report, “Asleep at the Switch: How the ACC is Letting Utilities Fleece Ratepayers,” that considers the power the Arizona Corporation Commission (ACC) has over the future of Arizona’s energy landscape, public health, and utility bill increases. The report also examines the ACC’s role in Arizona’s gas rush, as well as its ethical shortcomings.

It comes as the Commission considers a new rate increase for Arizona Public Service (APS), a new rate increase for Tucson Electric Power (TEP), and mechanisms that would allow both utilities to increase rates every year with less public engagement and stakeholder input opportunities.

Arizona has some of the highest electric bills in the country, with some of the most planned gas in the country. Despite this, the Commission has steadily increased ratepayer bills, making choices that facilitate expensive and polluting fossil gas operations and cutting programs that require utilities to conserve energy, lower electric bills, and invest in energy efficiency.

The report also makes an assessment of the Commission’s ethical shortcomings. Just in the last two weeks, additional accusations have surfaced of the Commission’s proximity to the companies they’re meant to regulate after in 2023 a Commissioner met with the very institutions that invest in utilities. Since the report’s publication, a Commissioner has also been called on to step away from ongoing cases considering rate increases by the Attorney General’s Office.

“We’ve seen the ACC continue to act against the interests of the community members they’re meant to protect, choosing instead to prioritize utility bottom lines,” said Sierra Club Grand Canyon Chapter Director, Sandy Bahr. “These decisions aren’t happening in a vacuum — they’ll come back to haunt us for generations. Keeping track of the Commission’s actions has shown us a pattern of putting utility profits and investors ahead of ratepayers and favoring polluters over the health and wellbeing of our communities. Arizonans deserve better.”