Arizona is using more electricity than ever. Extreme heat is pushing the grid to new records, data centers are adding enormous new demand, and families are already struggling with high summer power bills. This is exactly when Arizona should be getting more serious about using energy wisely. Instead, the Arizona Corporation Commission (ACC) has moved in the opposite direction.

Last month, the ACC repealed Arizona’s Electric Energy Efficiency Standards, which had been in place for about 15 years. The standards required regulated utilities to offer programs that help homes and businesses reduce wasted energy through measures such as weatherization, energy audits and more efficient appliances and equipment. These programs were not simply giveaways: each program had to pass a cost-effectiveness test and be reviewed by Commission staff.

The benefits have been significant. According to the Arizona Public Interest Research Group Education Fund, Arizona’s efficiency standard has generated an estimated $1.7 billion in net savings, with close to $4 returned for every $1 invested.

Commissioner Kevin Thompson has been a driving force behind this rollback. In 2024, Thompson made the motion that began the process of repealing Arizona’s electric energy efficiency standards. Then, in December 2025, he authored an amendment that sharply reduced Arizona Public Service’s proposed energy-efficiency investments. Those cuts carry significant consequences for customers. APS’s original plan projected about $127.7 million in lifetime net benefits. After the cuts, its updated plan projected roughly $26 million in benefits, a reduction of more than $101 million in projected annual benefits for customers. Put simply, the ACC’s cuts mean APS customers could lose out on more than $101 million in energy savings and other benefits every year.

Efficiency matters even more as electricity demand grows

The timing of the repeal is especially concerning.

Arizona is among the nation’s leading states for data center development. Pew Research Center counted 98 data centers already operating in Arizona and another 86 planned, under construction or “land banked” as of early 2026. The electricity demands associated with that growth are substantial: according to the ACC, about two dozen data centers already operate in the state with more than 2,000 megawatts of capacity, while more than 10,600 megawatts of additional capacity is planned. At the same time, Arizona utilities are experiencing record demand. As KJZZ reported following the repeal, APS and Salt River Project (SRP) recently set new records for electricity demand, while utilities are also preparing for substantial new demand from data centers and other large users.

Meeting growing demand without first reducing unnecessary energy use can mean a greater need for new power generation and infrastructure, costs that ultimately matter to ratepayers. Energy efficiency is one of the simplest tools available to reduce those pressures. Every kilowatt-hour we do not waste is electricity that does not have to be generated, transmitted and paid for.

The repeal is not the final word

Attorney General Kris Mayes is now challenging the ACC’s repeal. Her office argues that the Commission made a legal error by treating the standards’ 2020 energy-savings target as an expiration date even though the rules contained no sunset provision. The Attorney General also argues that the Commission finalized the repeal before completing a required economic, small business and consumer impact analysis and that the completed analysis contained factual inaccuracies and has asked the Commission to reverse its decision and rehear the matter.

At a time when Arizona is confronting extreme heat, rising electricity demand and rapid data center development, eliminating a proven tool for reducing energy waste makes little sense. Arizona needs an energy system that keeps electricity reliable and affordable while protecting our communities. Using less energy to accomplish the same thing is not outdated. It is common sense.