Key Points:
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The Arizona Corporation Commission hosted a workshop on natural gas
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The all-Republican panel indicated it is in favor of expanding natural gas generation
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Only one workshop presenter spoke in opposition to new gas infrastructure
The Arizona Corporation Commission indicates it is in favor of new natural gas infrastructure and storage as utility companies say natural gas will be crucial to supporting the state’s increasing demand for energy.
During an Aug. 26 workshop on natural gas, commissioners heard from Arizona utility companies, pipeline companies, the Arizona Chamber of Commerce and Industry, and the American Gas Association about the need for new projects to deliver and store natural gas in Arizona. Currently, most existing natural gas pipelines are at capacity and no utilities store natural gas within Arizona.
“Expanding natural gas infrastructure is definitely critical to ensuring Arizona’s energy reliability into the future,” Commissioner Nick Myers said. “And this workshop has confirmed my belief that we’re headed in the right direction.”
The other four commissioners echoed Myers’ sentiments throughout the meeting and gave enthusiastic support for increasing natural gas generation in the state.
The workshop came just a few weeks after Arizona Public Service, Salt River Project, Tucson Electric Power and UniSource Energy Services announced they would join in on Transwestern Pipeline’s Desert Southwest expansion project. The pipeline expansion will bring new natural gas to the state from Texas, starting in late 2029, at a cost of approximately $5.3 billion.
APS stated that the new pipeline will enable it to serve its customers more affordably, while SRP and TEP indicated that they are both considering converting existing coal plants to natural gas with the construction of the pipeline.
Danny Seiden, CEO of the Arizona Chamber of Commerce and Industry, also informed commissioners that natural gas expansion is a significant selling point for businesses considering relocation to the state.
“Perhaps most importantly for Arizona’s future, natural gas is essential to the success of our advanced manufacturing sector,” Seiden said.
He highlighted how natural gas will support semiconductor companies like TSMC and the increasing energy demand from data center companies that are already approaching Arizona’s utilities with proposals for new facilities.
Beth Hickey, a representative for Transwestern Pipeline Company, thanked commissioners for their warm reception to new natural gas infrastructure.
“It’s really refreshing to come into a room and have so much love for natural gas,” Hickey said. “It’s actually a really welcome change to some of the rooms I’ve been in.”
The workshop did not focus entirely on the benefits of natural gas, despite the overwhelming support for it from commissioners and utilities. Western Resource Advocates, a nonprofit group focused on climate change and clean energy, urged commissioners to consider the risks associated with new natural gas generation.
“I may be the lone voice you hear today that is not telling you that we need new gas in Arizona,” said Alex Routhier, a senior policy adviser with WRA.
Routhier said natural gas generation poses financial, reliability, safety, and health risks to Arizona and advised commissioners to instead lean into clean forms of energy, such as solar and wind. All of the commissioners pushed back on Routhier’s concerns.
“To think that you’re just going to shut off the coal plants and natural gas plants and go 100% renewable is a false hope,” said Chair Kevin Thompson.
Other commissioners emphasized that they are in favor of an “all-of-the-above approach” to energy supplies, which includes natural gas, nuclear, solar, wind, and coal. But one member of the public accused the commission of holding a “one-sided” workshop that only touted the benefits of natural gas with very little discussion of the risks.
Of the 14 stakeholder groups that presented at the workshop, Western Resource Advocates was the only presenter not in favor of bringing more natural gas generation to the state. Thompson and Myers both denied that the discussion was one-sided.
“You’ll notice we did have WRA on our agenda,” Myers said during his closing comments. “We did not intentionally exclude one side or the other. There just happens to be a lot of support for natural gas. It’s that simple.”
Several other stakeholders, including the Arizona Public Interest Research Group and the Sierra Club have expressed concern about the expansion of natural gas in the state, but neither was invited to present at the workshop.
The commission did not take any votes on natural gas expansion at the workshop and is unlikely to vote on approvals for any new natural gas projects this year.