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House OKs securitization bill after hours of debate over consumer protection and renewable policy
Summary
Lawmakers gave final passage to House Bill 2,679, authorizing utility securitization for certain costs, after lengthy floor debate about consumer savings guarantees, constitutionality and effects on energy transition policy.
The House gave final passage on Wednesday to House Bill 2,679, a measure authorizing utilities to use securitization — a financing tool that converts certain costs into lower-cost, long-term bonds — to recover expenses for storm and wildfire infrastructure damage and other specified plant costs.
Proponents said the revised bill tightened limits and requires the Arizona Corporation Commission to find that securitization “will result in lower cost to utility customers as compared to traditional financing options.” Representative Connolly and Representative Griffin, who spoke in favor, said recent drafting and stakeholder work narrowed the bill’s scope and added protections to ensure transactions lower customer costs.
Opponents urged caution. Representative Mathis called it “the broadest and most sweeping version of securitization in The United States,” voiced constitutional concerns he said were raised by the corporation commission and the attorney general, and criticized anti‑renewable provisions he said were inserted during negotiations. “This is not legislation that should be signed into law in its current state,” Mathis said.
Representative Cabarro and others warned the bill does not guarantee cost savings will be directed to ratepayers and asked for clearer, enforceable consumer protections. Representative Cabarro said she opposed the measure because it did not ensure savings “apply directly to our consumers.”
Action taken: The bill passed final passage by a recorded vote of 43 ayes, 15 nays and 2 not voting and was sent to the governor. Sponsors and stakeholders said the bill includes findings and new limits intended to require the Arizona Corporation Commission to approve only transactions that produce net savings to customers.
Why it matters: Securitization is a tool used in about 33 other states to lower borrowing costs for utilities and shift some financing benefits to customers; critics worry broad language could be used to finance costs that should otherwise be retired or scrutinized more closely, and some warned of potential constitutional or policy implications for the state’s clean-energy transition.
Ending: Supporters noted the bill’s guardrails and the ACC’s explicit role; opponents asked for appropriations, transparency, and stronger statutory language to ensure customers receive direct savings.
