APS funds fossil fuel front group advertising in Arizona
Social media advertisements released this week by fossil fuel advocacy front group Consumer Energy Alliance (CEA) are boosting Arizona Public Service’s (APS) recently announced proposal to convert two units at its retired Cholla Power Plant from coal to methane gas. According to a CEA internal budget document obtained by EPI via public records request, APS paid $15,000 for its membership in the organization in 2025.
APS noted the project, “will need to go through formal permitting and planning processes.” The chair of the regulator responsible for the final determination in that permitting and planning, Nick Myers, was onsite at the northeast Arizona plant for APS’s announcement.
Myers, Chair of the Arizona Corporation Commission (ACC), the agency which regulates investor-owned utilities in the state, was vocal in his support of the plant conversion in the days following the decision, stating that, “[c]onverting a retired coal-fired plant to natural gas is an important step in strengthening Arizona’s energy future.” Myers ran for reelection this year with his fellow incumbent commissioner, Kevin Thompson, who reposted CEA’s advertisement on his social media account saying that Myers and he “have pushed for natural gas since we were sworn into office. The fruits of our labor have paid dividends as we see APS announce the conversion of Cholla.”
Myers and Thompson also issued press releases about APS’s proposal, highlighting their roles in influencing the proposal. Thompson stated, “Chair Myers joined me in encouraging APS to consider the priorities of this Commission with decisions like Coronado and Springerville as they contemplated the future of Cholla.” The ACC approved the conversion of the Coronado and Springerville generating stations from coal to methane gas earlier this year.
Myers and Thompson faced Dr. Ralph Heap in a competitive Republican primary on July 21. Heap narrowly beat Myers for the second slot on the ballot after Thompson, with the support of conservative groups such as Turning Point Action and the Arizona Free Enterprise Club. Heap blamed the current ACC for the shutdown of the Cholla coal plant.
APS executives stated there was no definitive plan for Cholla weeks before their announcement
APS’s general rate case is currently under evaluation at the ACC. APS Chief Operating Officer Jacob Tetlow testified on May 26 about the company’s plans for Cholla, stating that APS did not “have a definitive plan” and that the company was “evaluating different alternatives.” The hearing in the rate case concluded on July 7, just days after the Cholla announcement. Parties are expected to submit briefs in late August and early September, and a decision from the ACC is due no later than December 31, 2026.
APS also plans to submit an integrated resource plan (IRP) to the ACC in August, assessing the company’s required energy needs and potential resources over the next 15 years. If the conversion of Cholla from coal to methane gas use is the lowest cost alternative, the company may use the IRP to help make its case. If the conversion is motivated by pressure from the ACC or the federal government, customers may end up paying the price.
Front group CEA has funded efforts in Arizona before
CEA is operated out of the offices of the Houston-based public relations and lobbying firm HBW Resources (HBW). According to CEA’s IRS 990’s, since 2010, the front group has allocated 56% of its $46.9 million revenue to HBW. The 990s also reveal that CEA has no staff; nearly all the representatives listed on CEA’s website are HBW employees. Recent CEA Board of Directors documents obtained by EPI show robust representation by the utility sector for CEA’s advocacy. In 2025, the group allocated more than $900,000 to support utility advocacy in several states including Arizona. This allocation also included dedicated funds for advocacy on behalf of the Edison Electric Institute, the utility industry’s national lobbying association.
CEA’s Southwest Director, Matthew Gonzales, celebrated the Commission days before its 2024 election, which ushered in a 5-0 Republican majority, including current Vice Chair Rachel Walden, who was recruited to run for her seat by Myers.
Thompson and Heap will face Democrats Clara Pratte and Jonathon Hill in the general election on November 3.
