What Arizona's Energy Taskforce Means for Chambers Across the Nation
Like many states, Arizona is experiencing rapid and significant growth in electricity demand and rising utility costs.
Arizona’s energy demand is projected to rise by 40% over the next 15 years, and utilities are already seeking double-digit rate increases to keep pace. For chambers of commerce, this presents a challenge to business costs and long-term economic competitiveness.
Last fall, Governor Katie Hobbs appointed me to serve on the Arizona Energy Promise Taskforce to develop recommendations for the state’s energy future. In April, we delivered our final report outlining steps to modernize the grid, support economic growth, and protect families and businesses from rising costs.
Here’s what matters most for chamber and economic development leaders across the country facing similar pressures.
The report focuses on three priorities:
Affordability: Ensuring large energy users like data centers pay their fair share, so costs don't shift onto small businesses and other ratepayers
Reliability: Modernizing the grid and advancing an all-of-the-above energy strategy, including solar, wind, battery storage, geothermal, and advanced nuclear, to meet growing demand
Economic competitiveness: Accelerating project timelines through a centralized permitting coordination council to reduce delays for energy generation and transmission
Utilities are already moving to recover rising costs, and without thoughtful policy, those costs will increasingly fall on local businesses. At the same time, demand is being driven by population growth, extreme heat, and large commercial energy users—trends that extend well beyond Arizona.
Chambers belong in energy policy conversations. Business and economic development perspectives are often underrepresented in decisions that directly shape regional competitiveness. When chambers and EDOs engage, policy outcomes are more likely to reflect the needs of employers and communities.
Arizona isn’t unique. States across the country are facing similar pressures, and many are just beginning to confront how to balance affordability, reliability, and growth. The approach Arizona is taking—particularly regarding permitting coordination and cost allocation—offers a useful model for other states navigating similar challenges.
The work now shifts to implementation. The Arizona Corporation Commission and the state legislature will take up many of these recommendations, and continued engagement from the business community will be essential to achieving strong outcomes.
For chambers and EDOs in Arizona—and across the country—now is the time to engage. That means participating in regulatory processes, weighing in on siting and permitting, and ensuring business perspectives shape how new energy demand is met.
Read the full Arizona Energy Promise Taskforce Report or the summary of recommendations, and reach out to Colin Diaz, CICE’s Western Regional Director, to learn how your organization can engage in these conversations.
