The Arizona Freedom Caucus (AFC) issued a statement on Tuesday critical of Governor Katie Hobbs’ veto of a bill that would have provided more energy choices. The group of conservative Arizona legislators accused Hobbs of being influenced by Arizona Public Service Co. (APS), the state’s largest electricity utility. APS was the largest donor to Hobbs’ inaugural festivities.
“PAY TO PLAY?! @APSfyi, AZ’s largest electric utility company, donated $250K to @KatieHobbs in January,” the AFC tweeted. “Today @GovernorHobbs VETOED HB2440 which would’ve required the most affordable & reliable electric service be the priority. Hobbs just raised utility prices for everyone in AZ.”
PAY TO PLAY?!@APSfyi, AZ’s largest electric utility company, donated $250K to @KatieHobbs in January
Today @GovernorHobbs VETOED HB2440 which would’ve required the most affordable & reliable electric service be the priority
Hobbs just raised utility prices for everyone in AZ pic.twitter.com/ug9gmWqiat
— Arizona Freedom Caucus (@AZFreedomCaucus) April 4, 2023
The House Summary of HB 2440 states, “Requires public service corporations and public power entities to prioritize grid reliability and affordability to retail customers when planning electric generation, transmission and distribution resources and further requires these entities to conduct planning and investments to maintain reliable and affordable electric service.”
Hobbs said in her veto message that HB 2440 was unnecessary and “creates regulatory uncertainty in instances where affordability and reliability may be at odds.’’ She said the Arizona Corporation Commission is already compelled by statute and case law to consider reliability and affordability when making decisions. She wants to focus on “solutions that deliver direct assistance to Arizona families struggling with energy costs.’’
Kari Lake, who is still challenging her gubernatorial loss to Hobbs in court, tweeted, “.@Katiehobbs is enriching her friends and punishing her constituents. This is blatant corruption from Hobbs and her administration.”
The Kari Lake War Room Twitter account tweeted at 12 News’ Joe Dana, “.@JoeDanaReports, You’re an Investigative reporter. Report on this.” No local mainstream media outlets have reported on this. Lake, a former news anchor for Fox 10, frequently criticizes the mainstream media for its lack of coverage of newsworthy events.
Others on Twitter were furious. A Twitter user named .6 of 1% is no Mandate asked, “Why is it OK for @katiehobbs to accept $250,000 from a regulated utility that will flow the cost to Customers @Garrett_Archer @JoeDanaReports @azcentral?”
Rangerwife19 tweeted, “Making Arizona California one BS bill at a time.” Nico Delgado tweeted, “She is selling vetoes to the highest bidders.”
Hobbs’ inaugural festivities drew criticism immediately after she took office due to refusing to disclose how much special interests contributed and requiring them to donate $250,000 without explaining where the money was going. Only after weeks of pressure did Hobbs reveal how much the special interests had contributed.
In January, David Pomerantz with the Energy and Policy Institute predicted the APS donation would influence Hobbs. “This is a brazen attempt by APS to try to buy the loyalty of yet another Arizona political leader,” he told AZ Family. “They’re clearly trying to buy some degree of loyalty or curry some favor with Governor Hobbs after spending hundreds of thousands of dollars to defeat her in the election.”
In the fall of 2021, the Arizona Corporation Commission (ACC) voted to punish APS for poor service and bad investment decisions by cutting into its profits and returning some of the money to consumers. APS had intended to charge customers for $216 million it spent on upgrades at its Four Corners Power Plant near Farmington, New Mexico. APS had not provided a rate decrease to customers since 1996.
APS sued the ACC over the vote and is now requesting a rate hike. The utility wants an additional $460 million a year in revenue, which is about $18 per customer, or a 13.6 percent increase in their bills.
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Rachel Alexander is a reporter at The Arizona Sun Times and The Star News Network. Follow Rachel on Twitter. Email tips to [email protected].
Photo “Katie Hobbs” by Katie Hobbs. Background Photo “Arizona Public Service Workers” by Arizona Public Service – APS.
