In our most recent research study, The High Cost of the APS Plan to Go Net Zero, AOER evaluated Arizona Public Service’s (APS) plan to achieve “Net Zero” emissions by 2050. The study, commissioned by Arizona Free Enterprise Club and the AZ Liberty Network, projects that APS’s Net Zero plan would necessitate an investment of at least $42.7 billion by 2038, potentially increasing residential electricity bills by approximately $100 monthly and commercial bills by about $454 per month.
The plan involves significantly expanding grid capacity from the current 10 GW to 27 GW to accommodate intermittent renewable sources like wind and solar. Despite this expansion, the analysis indicates a possible capacity shortfall of up to 3,701 MW by 2038, which could affect about one-third of customer demand and lead to rolling blackouts. An alternative scenario focusing on reliable, dispatchable power sources could save ratepayers over $20 billion. The study reveals that APS’s current approach is being done voluntarily without direction from the state legislature or the Arizona Corporation Commission.