Arizona consumers are contesting a proposed $90 million Southwest Gas rate increase that analysts say would only benefit future - but not current - customers.

Its application to the Arizona Corporation Commission seeks to raise rates for natural gas customers by 11.5% to pay for increased profits, fund carbon offsets to reduce greenhouse gases, recover trade association dues, and recoup late-payment charges waived during the pandemic.

Keriann Conroy, research associate with the watchdog group Energy and Policy Institute, said the utility's two million Arizona customers can't afford another rate hike.

"Asking customers to foot the bill to build the customer base of Southwest Gas to folks who currently don't have gas," said Conroy, "which should not be the responsibility of the customers, and absolutely goes against greenhouse gas emission goals."

Southwest is asking for a 9.9% built-in return on equity, up from 9.1% granted in 2020.

Arizona regulators are recommending a rate of 9.3%. Nevada regulators rejected a similar rate request from Southwest earlier this year.

Conroy said that in the current economic climate, raising natural gas rates doesn't make any sense.

"In Arizona, the state is still recovering from the ongoing pandemic and we're at record inflation, and customers are already struggling to pay their utility bills," said Conroy, "And so now, to see such a high rate increase can have a really negative impact."

Conroy noted that the Southwest Energy Efficiency Project, an intervenor in the case, claims Southwest Gas has never committed to specific goals for greenhouse gas reductions and is concerned about the lack of accountability in the utility's proposal.

"As of now, all the letters at the Arizona Corporation Commission from customers have been in opposition, and there have been many of them," said Conroy, "So, customers are very much engaged and they don't want to see this rate increase happen."

Conroy expects a ruling by year's end or in early 2023.

While lawmakers and environmental groups strive to lower vehicle emissions and the nation's carbon footprint, many truckers see unrealistic timeframes for new Environmental Protection Agency rules for heavy-duty truck emissions.

Some believe the EPA's push is an attempt to force people into buying electric vehicles, despite the cost and lack of a national charging infrastructure for commercial vehicles.

John Boesel is CEO of the nonprofit CALSTART, which he said has come up with a roadmap to achieving such a network. Boesel is convinced the nation needs to move faster to make an impact on climate change.

"In the future," he said, "we can see a society where we have trucks rolling around with zero emission and zero noise, truck drivers being much happier driving an electric truck, and benefiting communities that have been hard hit by diesel pollution and emissions."

Boesel said today's fleets are exposed to the volatility of the global oil markets, but that would change if they're powered by hydrogen or electricity. He added the Biden administration has an opportunity to make progress in supporting communities that have been disproportionately affected by diesel trucking and pollution.

Hilary Lewis, steel director at Industrious Labs, a group working to decarbonize heavy industry, said Detroit is well positioned to lead on "clean steel" and vehicles, with its robust supply chain and manufacturing capacity. She said the Inflation Reduction Act provides funding for clean steel facilities.

"The auto industry, they have a huge stake in the future of clean steel," she said. "If they were to wake up one day and decide, 'We need clean steel, we need to reduce the embodied emissions of our vehicle,' that would send a huge market signal to steel companies."

Ryan Gaul, president for commercial vehicles at Workhorse, which manufactures EVs in the Midwest, said decarbonizing supply chains has been a priority for a while now, but when it comes to making heavy-duty electric trucks, the regulations are what's missing.

"EVs are a competitive technology; that range is not really a problem anymore, and the benefits of the transition to EV have great effects - not just for the environment, but also for the creation of jobs," said Gaul. "Now, what we're doing in our company is, we're bringing jobs back to the Midwest."

Gaul said he also thinks investment in the public sector would help speed up the transition.


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Just as New York State prepares for its first offshore wind farm to come online, a new report predicted the state will not meet its climate goals.

The Public Power New York report showed, despite great progress, the state will not meet its 2030 clean-energy targets. In October, Gov. Kathy Hochul announced a multibillion-dollar investment in renewable energy projects which would accomplish 70% of the state's goal.

Patrick Robbins, coordinator of the New York Energy Democracy Alliance, described some of the factors at play.

"One answer is a kind of uneven marketplace for financial investment when you're looking at renewable energy," Robbins explained. "There was a number of contracts and leases that fell apart for utility-scale renewables, just in the last two months, here in New York."

He also cited supply chain issues and increased costs for construction materials. Some renewable energy developers canceled projects because their contracts were negotiated prior to the pandemic. But Robbins is confident New York can make up lost ground, and pointed out the New York Power Authority is taking advantage of Inflation Reduction Act funds for renewable energy projects.

While the pandemic may have slowed New York's progress on its climate goals, it is not the entire issue. Robbins emphasized there is more than enough blame to go around. He argued the state could have done plenty of things differently since the goals were set in the Climate Leadership and Protection Act.

"The support from the state itself has really been uneven at best," Robbins contended. "Especially, actually, at the time of the CLCPA's passage. When you're not talking about a strong and dependable state partner, there's only really so much you can do."

Over the next year, Robbins stressed he and other climate activists hope to educate legislators and the public about New York's climate goals and what more could be done to achieve them.

Though 2030 may not be the year the goals are met, Robbins is confident they are within reach. He said the timeline depends on Gov. Hochul and the New York Power Authority's board.

"I am confident that, if the governor and the NYPA board craft an ambitious implementation plan for 2025 and see that through, we will usher in a new era in New York's energy generation that can set a positive example for the country and the world," Robbins added.

Plenty of legislation has passed in recent years to ensure the state moves closer to its goals. However, lawmakers have said some bills like the New York HEAT Act failed due to competing priorities in the budget process.

Utilities and government agencies in the U.S. are carrying out plans to transition to cleaner electricity sources. To avoid being left behind, rural communities, including in Minnesota, are leveraging federal resources to expand their power portfolios.

The topic was part of a recent congressional briefing hosted by the Rural Power Coalition.

Sen. Tina Smith, D-Minn., took part, saying investments from the Inflation Reduction Act provide grants and loans to rural electric co-ops, so they can purchase or develop renewable energy systems. There is also funding for municipal utilities and tribal governments.

"These voluntary, technology-neutral programs put rural electricity providers on the path to unleash clean energy for the communities that they serve in a way that works best for them," Smith explained.

Smith noted recent applications are likely to surpass available funds, underscoring strong demand from smaller communities to diversify energy sources. Rural electric co-ops have had a harder time competing with investor-owned utilities in the decarbonization movement, in part because of being locked into coal contracts. In Minnesota, co-ops serve roughly one-third of the state.

Gabriel Chan, associate professor of public policy at the University of Minnesota and co-director of the Electric Cooperative Innovation Center, spoke in the briefing. He said the extra federal support allows co-ops to scale up clean energy production while still managing their existing debt.

"This ensures that the energy transition can move at a rapid pace," Chan pointed out. "While also ensuring that the transition happens on an affordable and reliable path."

He suggested keeping costs lower for the energy transition in rural areas puts their local economies in a better position. According to the National Rural Electric Cooperative Association, such operations serve more than 90% of counties experiencing persistent poverty.