Phoenix, Ariz. - The Arizona Corporation Commission held its first in a series of workshops on Natural Gas Infrastructure and Storage on Tuesday, August 26, 2025. Vice Chair Nick Myers hosted the event, with the purpose of discussing with stakeholders and the public, the costs and benefits of expanding natural gas pipelines and storage in Arizona, ongoing and future natural gas projects, and market and regulatory updates related to the expansion of natural gas infrastructure.  “I was thrilled to oversee the focused and collaborative discussion on the critical role of natural gas in ensuring Arizona’s energy reliability,” stated Vice Chair Nick Myers, “Expanding natural gas infrastructure is essential to securing Arizona’s long-term energy reliability, and the workshop reinforced my belief that we are moving in the right direction.” 

The workshop included presentations from more than a dozen agencies across the country, including the American Gas Association (AGA), Federal Energy Regulatory Commission (FERC), National Energy Dominance Council (NEDC), Arizona electric and natural gas utilities, and the Arizona Chamber of Commerce & Industry.  Representatives from the Trump Administration offered their support in Arizona’s efforts to expand natural gas infrastructure.

“We have a lot of the same priorities, we want to ensure we are building pipelines, storage and infrastructure,” said Senior Policy Advisor Brittany Kelm. “We are constantly working with stakeholders here for data centers and nuclear projects in Arizona. We love Arizona here, so I was thrilled to have this opportunity."  Kelm went on to explain “The NEDC was … created to get projects built and off the ground, ensure projects can get permitted and offer investment certainty.”

“In Arizona, we need to continue our approach to seek all forms of power generation to meet our organic growth and new economic opportunities while prioritizing reliability and affordability,” said Commissioner Rene’ Lopez.  “Natural gas will be a major contributor to meeting these demands for generations to come and we need to ensure our utilities are making prudent investments in order to maintain Arizona’s position as one of the lowest cost of energy states AND one of the most stable grids.”

Currently, there are 49 applications for gas infrastructure and storage projects pending with FERC, which is the federal commission that oversees natural gas companies’ applications to build and operate interstate natural gas pipelines and storage projects.  In Arizona, the state’s three largest electric utilities discussed the necessity of the Desert Southwest Expansion Pipeline Project, a $5.3 billion initiative to expand the Transwestern Pipeline system by adding 516 miles of new pipeline and nine compressor stations from Texas to Arizona.  The capacity of the current pipelines is 100% subscribed, additional capacity would not be possible without building new infrastructure.

“It’s important at the Commission that we study all sources of energy generation to support in ‘all of the above approach’,” said Commissioner Lea Márquez Peterson. “We speak frequently about the importance of energy reliability at the most affordable rates - especially during the intense heat of summer. I appreciate the update from the various organizations and companies on possible natural gas expansion in our state.”

According to the most recent data provided by the Energy Information Administration (EIA), natural gas provided about 45% of Arizona’s electricity needs in 2024.  The director for resource planning with APS, Mike Eugenis, stated “Dispatchable, flexible natural gas plays a vital role in providing power, especially when intermittent resources are not available, and batteries are depleted.” To address variability during the day, APS matches gas generation to solar output.  The recent dust storm’s effect demonstrated how that works. “We lost about 1,000 MW of solar resources, and the load was still growing,” said Eugenis. “There’s no question, if we did not have access to natural gas resources, we would have not been able to maintain reliability.” 

“Arizona is poised to retain its position as a top-tier state for energy in reliability and affordability,” said Commissioner Rachel Walden. “Natural gas is one component of an all-of-the-above approach as we work to provide energy that will be the most reliable and the least cost.”

“Our workshop demonstrated why natural gas generation must continue to play a pivotal role in meeting Arizona's increasing energy demands and keeping the lights and AC on, especially during extreme weather events," said Chair Kevin Thompson. "Maintaining a reliable energy grid requires the ‘all of the above’ approach this Commission has been pushing, and for our utilities to adequately combine natural gas with coal, nuclear, and renewables, so that we can continue to make affordable electricity readily available when customers most need it, not just during times of sunshine or ideal weather conditions."