Arizona's rising power demand needs adult choices, not slogans

Arizona just got a blunt reminder from one of its own lawmakers: the state's electricity demand is climbing fast, and pretending otherwise is a good way to invite blackouts. In an Arizona Capitol Times column, Sen. Vince Leach argues Arizona has hit record daily peaks and only stayed ahead because utilities kept real capacity on hand.

The consequence is obvious. If policymakers get cute with ideology or stall projects that actually produce electrons at 5 p.m. in August, families and factories will pay through outages and higher bills. Leach credits the Arizona Corporation Commission's all-of-the-above posture, nuclear, natural gas, coal and renewables, for keeping the lights on.

Leach also points to a late-July U.S. Department of Energy emergency order that pressed backup generation into service across multiple states. He notes Arizona was not on that list and calls it a testament to grid resiliency here. Take the compliment, then take the hint: you only dodge those orders if you keep firm, dispatchable power available.

On the mix itself, Leach says natural gas supplies nearly 50 percent of Arizona's energy and should remain the workhorse while renewables expand with battery storage. He highlights APS's proposal to revive the retired coal-fired Cholla plant with natural gas. That kind of life extension is not glamorous, but neither is sitting in the dark.

Rural Arizona is doing more than its share in this story. According to Leach, renewable projects paired with utility-scale batteries are already generating, storing and dispatching power where it is needed, while also paying tens of millions in property taxes that support schools, law enforcement and first responders. He singles out Pinal County as ideally situated for more buildout.

Prices matter. Leach writes that, even as demand grew, Arizona's retail electricity prices were flat from 2019 to 2024 once you adjust for inflation. If that holds, it is proof that a pragmatic portfolio can protect wallets. The challenge is ahead: Leach says utilities are forecasting roughly 5 percent annual demand growth.

Translation for adults: expand firm capacity and transmission now. Batteries are getting better and solar is abundant at noon, but neither replaces gas or nuclear during a week of monsoon humidity when the sun sets and everyone's still running AC. If you want modern fabs, data centers and defense manufacturing, you need kilowatts on command, not on vibes.

Leach backs completion of the Transwestern Pipeline from West Texas to Arizona to secure more gas supply. That is the type of unglamorous infrastructure that makes or breaks reliability. The state should align permitting, interconnections and siting to move proven projects first, while still leaving room for next-generation nuclear and other advances when they are actually ready.

Regulators and utilities do not need to pick favorites so much as enforce one standard: meet load in all conditions at the lowest prudent cost. If APS's Cholla conversion clears that bar, approve it quickly. If a rural storage project can shave peak and cut costs, greenlight it. Mandates that ignore grid physics are how you end up in a federal emergency order next time.

Leach's closer is the right one. Arizona can rest on a good month, or it can keep building the backbone that lets families stay cool and employers keep hiring. Choose wisely.

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