Arizona Attorney General Sparks Turf War With Corporation Commission Over Utility Decisions

Mayes Files Multiple Challenges, Accuses Regulators of Violating Procedures

PHOENIX — Arizona Attorney General Kris Mayes is challenging several recent Arizona Corporation Commission decisions, sparking frustration from a body often considered Arizona's fourth branch of government.

In the month of March alone, Mayes' office filed three rehearing requests in three separate commission matters, accusing commissioners of violating state law, ignoring the commission's own rules or acting contrary to the best interests of utility customers.

Renewable Energy Standard Repeal

Mayes' office filed an application for rehearing on March 30 in the Renewable Energy Standard and Tariff Rules docket. The commission voted unanimously on March 5 to repeal the rules that required the state's major utility companies to get 15% of their energy from renewable sources like solar and wind.

The rules were originally adopted by the ACC in 2006, when Mayes was serving as a Republican commissioner. Mayes called the repeal "silly and ridiculous" which led Kevin Thompson, then the commission's chair, to take a jab at her during an August 26, 2025, hearing on natural gas plants.

Mayes' office argued the ACC violated its own rulemaking process by finalizing the repeal before a required economic impact statement was completed. "Arizonans never got the chance to review the completed analysis or comment on it before the commission voted — completely undermining meaningful public participation in the process," Mayes said in a statement.

Rate Case Interventions

Mayes' office also filed another rehearing application in a rate case for two water and wastewater companies serving the Robson Ranch retirement community near Eloy. The commission approved a 22% rate increase for water and 154% increase for wastewater for the Picacho Water and Picacho Sewer Companies.

"While commissioners grew irritated, residents in the area celebrated. 'We were pleasantly surprised about the AG's office involvement,' said Raul Salmon, the leader of a local task force formed to oppose the rate increase."

Mayes argued the ACC erred in approving the rate increases because commissioners did not adequately consider the impact on ratepayers and did not review documents related to a stock sale of the utilities to JW Water.

Mayes also requested a rehearing on the commission's approval of a formula rate structure for UNS Gas, allowing the company to adjust customer rates annually rather than going through the typical rate case process every few years.

Commission Pushback

The commission's general counsel, Tom Van Flein, took issue with Mayes' assertions that recent commission decisions violated any laws. "The Commission takes each complaint or application for rehearing seriously. However, policy disputes are not the same as legal error," Van Flein said in a statement.

Commission Chair Nick Myers went further, accusing Mayes, herself a former commissioner, of wading into the commission's jurisdiction to score points for her reelection campaign. "(Mayes) needs to get her name out there, and she's using the office and using these goofy lawsuits to get her name in the public eye for campaign purposes," Myers told the Arizona Capitol Times.

Consumer Advocate Defense

Mayes' communications director Richie Taylor defended the attorney general's foray into ACC issues in a statement. "When the commission springs 154% utility rate increases on senior citizens, or gives sweetheart deals to data center operators, AG Mayes is going to stand in their way," Taylor said.

Former Democratic Attorney General Terry Goddard, who served in the role at the same time Mayes served on the commission in the early 2000s, told the Arizona Capitol Times that his office did not intervene in ACC matters. "But I think that's because the commission was doing its job," Goddard said. "I didn't see any reason for us to get involved, the Residential Utility Consumer Office was, as far as I could tell, advocating for consumers and we didn't have the same environment that AG Mayes does."

Political Context

Currently, the commission is made up of five Republican members. Without a single Democratic commissioner, many decisions are made unanimously and tend to favor conservative energy priorities, like promoting coal and natural gas generation and ending Green New Deal policies.

The tension between Mayes and the ACC has been simmering for months, with tempers flaring in August as the commission was in the process of repealing its Renewable Energy Standard and Tariff Rules. The day after filing an application for rehearing in the REST rules docket, Mayes' office filed another rehearing application in a rate case for the Robson Ranch utilities.

The commission has 30 days to respond to Mayes' requests. The battle is likely to head to court as Mayes looks to reverse several policy and rate decisions.