Arizona has one of the country’s biggest data center pipelines—and, in a few weeks, will hold one of the most closely watched governors’ races. Like other gubernatorial contests around the US, energy affordability ranks as a top priority for candidates amid rising ratepayer frustration.
But further down the ballot, another race will have more direct impacts on utility bills: the election for two seats on the Arizona Corporation Commission (ACC).
The agency regulates the state’s privately- and investor-owned utilities, along with co-ops, and oversees the rate-making process. They also have a say over which energy sources utilities invest in.
The stakes: Recently, ratepayers urged the ACC to reject requests from Arizona Public Service (APS) and Tucson Electric Power (TEP) to raise residential rates by 16% and 14%. And in 2024, the commission drew criticism for approving an APS rate hike with a 4-1 vote—but the latest batch of ACC candidates includes hopefuls who say they’d take a tougher stance on utility spending.
The election could also influence the state’s energy mix, which is mostly composed of natural gas and nuclear. Arizona’s solar capacity has spiked over the past few years, but clean energy advocates say that some of the state’s Republican lawmakers (and the ACC) are trying to hobble the buildout.
On the ballot:
Kevin Thompson (R): Thompson has served on the Commission since 2023. He previously worked as a Southwest Gas lobbyist.
Ralph Heap (R): An AZ state rep., Heap notched a surprise win in the Republican primary over sitting ACC Chair Nick Myers. Heap’s platform (endorsed by right-wing group Turning Point) centers on prioritizing coal.
Clara Pratte and Jonathon Hill (D): Pratte and Hill are running on a combined platform to lower rates, prioritize renewables, ensure data centers cover their costs, and improve utility transparency. They’re framing Thompson and Heap as “rate raisers."
If Heap wins: His coal push seems unlikely to work, said Stephanie Chase, research and communications manager at the utility watchdog org Energy and Policy Institute. This coal comeback attempt “feels more like a MAGA loyalty test than an actual argument based on economics.”
And if both Dems win? “You would see a lot more scrutiny of utility company decisions,” Chase predicts. While they wouldn’t hold the majority, individual Commissioners have the power to subpoena and request records from the utilities that they regulate.
Pratte and Hill have already called for an investigation into the claim that APS residential and commercial customers paid nearly $600M to subsidize data center growth. (APS and the executive director of the ACC have denied this allegation.)
One issue to watch: Decisions on formula rate plans proposed by APS and TEP (these enable companies to adjust rates annually). The ACC has sung their praise, claiming they “provide a more streamlined and predictable method for setting rates.” Pratte and Hill, meanwhile, are firmly opposed.
“The commission has been the source of a lot of really bad ideas over the last couple decades. This has got to take the cake,” Hill said during a recent panel. “Why do we have a commission if they're not actually gonna fulfill their constitutional role and actually serve as guardians, as consumer advocates for Arizonans?”