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From the national to the state to the local level, the state is about to hold some of the country’s most crucial elections.

In 2022, the Arizona Republic published a sentence many Democrats had dreamed of reading for decades: “Arizona,” the paper announced, “is a blue state.”
At the time, it felt true. In 2020, Joe Biden won the Grand Canyon State — only the second time a Democrat had done so since Arizona broke for Harry Truman in 1952 — and Democrat Mark Kelly defeated Republican Sen. Martha McSally in a special election to fill the late John McCain’s Senate seat, a victory that helped the Inflation Reduction Act get over the finish line. The 2022 midterm elections confirmed that the Democrats’ wins in the state hadn’t just been a one-time occurrence: Kelly successfully defended his seat, securing a full term; Katie Hobbs won the governorship; and Adrian Fontes beat a January 6 participant to become the secretary of state, Democrats all.
With the 2024 election still a little more than a week away, it’s too soon to tell whether the blue state proclamations of 2022 were premature. But Arizona hasn’t been looking terribly cerulean. In 2023, the Republican-held state legislature passed eight of 16 anti-environment bills introduced and stranded 22 pro-environment bills without committee hearings. Republican voter registration in the state has also swelled since 2016 as Democratic rolls stayed relatively stagnant, giving the GOP an edge in a place where 10,457 votes can make all the difference.
Arizona is just one state out of 50 (or 11 electoral votes out of 538, if you prefer), but it represents a curious microcosm of the high-stakes climate and energy elections happening all over the country this November. Or perhaps it is not so curious: Arizona is on the front lines of the climate-related impacts of droughts, longer and nastier heat waves, ozone pollution, and wildfires, while also being in a position to weigh the trade-offs of crucial clean energy developments like building new energy transmission, critical mineral mining, and utility-scale solar. “It’s like an incubator. There’s just so much happening here, it’s ready to burst,” Jane Conlin, a co-leader of the Tucson chapter of the Citizens' Climate Lobby, which has been engaging in get-out-the-vote efforts with the Environmental Voter Project, told me.
Aside from its electoral college allocations, the most consequential race in Arizona this cycle will be for outgoing Independent Senator Kyrsten Sinema’s seat. The state is currently leaning slightly toward Democratic Representative Ruben Gallego, who could help stem a total hemorrhaging of blue seats from the Senate — which, in turn, would have implications for the passage of any decarbonization legislation in the next administration.
Two U.S. House elections in Arizona could similarly help determine the balance of power on Capitol Hill come January. AZ-01 is the wealthiest congressional district in the state, in the northeastern corner of Phoenix’s Maricopa County, where a former E.R. doctor is trying to unseat a seven-term Republican incumbent in a battle that has centered on abortion access. (The district is also home to the Rio Verde Foothills, which made national headlines in 2022 when Scottsdale cut off its water supply due to drought-related shortages.)
But it’s the other race, in the sixth congressional district spanning the suburbs of Tucson, that looks more like a proxy battle between different climate ideologies. Kirsten Engel — who previously worked for the U.S. Environmental Protection Agency and serves as the co-director of the Environmental Law Program at the University of Arizona — is challenging Juan Ciscomani, a Trump-endorsed moderate conservative who has backed residential solar projects, promoted himself as an advocate for a “secure water future,”and, earlier this year, co-sponsored a bill seen as a first step toward a carbon border tax. (As his opponents quickly point out, he also voted against the IRA; Ciscomani has also been tied to a groundwater scandal involving a Saudi Arabian-owned alfalfa farm.)
Engel previously lost a tight election against Ciscomani in 2022, and has made abortion a centerpiece of her campaign, too. But she has also gone aggressively after the Republican for his alignment with the mining industry, including his support for a proposed open-pit copper mine that opponents say will pollute Tucson’s air and waterways; supporters, meanwhile, say it’s critical to create a domestic supply chain for the energy transition. The League of Conservation Voters, which identified the sixth congressional district election as one of its priority races, is running ads in the state playing up this pollution angle.
Engel herself has slammed the proposed mine, which would be built on public lands, as a “giveaway” to a foreign mining company, and touted the need to protect the region’s “spectacular scenic vistas and the tourism economy.” She has also sought to go toe-to-toe with Ciscomani on water conservation, though as Grist has reported, drought and water rights can be tricky for Arizona politicians to run on because voters don’t have a firm grasp of how the complicated policies work.
The future of climate policy at the regional and municipal levels in Arizona is also in play. Democrats could potentially flip the balance of power in the state House and Senate, each branch currently having just a one-seat Republican advantage, and restart movement on the slate of stalled pro-environmental bills. (The Democratic governor’s term runs through 2026.) “The state legislature in Arizona is so critical,” John Qua, the campaign manager of Lead Locally, told me. “Not only does building a democratic trifecta get the state closer to passing policy that tackles climate change in some of the ways we might more typically understand it — like moving towards clean energy — but it also makes it much likelier that the state legislature will pass water conservation policy.”
The 11 races are “all at a razor-thin margin,” Qua told me, though climate is unlikely to be the issue that tips the balance in any of them. That goes for just about any race in Arizona — except the state’s Corporation Commission, which Heatmap’s Emily Pontecorvo covered earlier this week. Currently, the ACC is operating with a four-to-one Republican majority, but with three Democrats, two Green party candidates, and three Republicans (including an incumbent) running to fill three seats, there’s a wide-open chance that candidates sympathetic to clean energy policy, including the state’s massive solar opportunity, could take control.
“Arizona could lead the world in solar power if politicians would only let it,” Nathaniel Stinnett, the founder and executive director of the Environmental Voter Project, told me. “But that isn’t going to happen unless the climate movement starts showing up in unstoppable numbers whenever there’s an election.”
Conlin, who co-leads the Tucson chapter of the Citizens’ Climate Lobby, has been working on the ground to reach the 230,000 potential first-time environmental voters that Stinnett and his team have identified in the state. (EVP numbers released earlier this week showed that those who vote based on climate issues were about 20% more likely to have submitted an early vote than the average voter.) During a recent folklife festival CCL volunteers attended, “I think about only 25% of people [we engaged with] were really aware of the Arizona Corporation Commission,” Conlin told me. But she’s excited nevertheless: This year, the ACC poll is on the front of Arizonans’ ballots, rather than the back, making it harder for even low-information voters to overlook.
The state is also a case study of how an elected body as small and seemingly insignificant as a school board can make a difference in the progress toward decarbonization. The Tucson Unified School District board of governors will vote next week on a climate action plan that would set a goal of reaching net-zero emissions by 2045. If successful, TUSD would be one of the first school districts in the nation to have implemented such a plan.
Arizona is not the only state in the country that, as Colin put it, feels “on this cusp of being able to reach out — not only to see a 50% cut in emissions but 100%. It’s doable, it’s within reach.” Pennsylvania and Michigan voters will also have opportunities to elect politicians who will advance climate legislation, and voters in Washington, California, and New York can defend their states’ progress. But it’s Arizona where the stakes seem especially immediate — and high. “It’s supposed to be 96 [degrees Fahrenheit] here today,” Conlin marveled when we spoke this week, at the end of October.
I could hear the weariness in the voices of the organizers I spoke to after a long, hard-fought season; candidates are set to make their final pitches to voters next week. Early-voting ballots are already in the mail or in hand. The CCL has just one final day of canvassing planned, on November 2. The polls will close three days later, at 7 p.m. local time, and then the count will begin.
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The gains set up Democrats to potentially flip the utility commission in 2028.
The blue wave has officially reached the Arizona down ballot. Though two Democratic wins in the Arizona Corporation Commissioner race might not drum up the same national coverage as, say, flipping a Senate seat in South Carolina, the election of Clara Pratte and Jonathon Hill to the five-seat commission could have major energy implications in a state that already saw renewables champions take over the state’s largest utility earlier this year. (With close margins in slow-to-count Arizona, the ACC race wasn’t officially called until Thursday evening, when both Republicans conceded.)
Arizona is one of 10 states that elects its utility commissioners, with the ACC regulating private water, gas, and electric companies in the state. That includes overseeing Arizona Public Service and Tucson Electric Power, where bills have increased 52% and 10%, respectively, over the past five years, per Heatmap’s data. (The publicly owned Salt River Project, which serves much of the Phoenix area, operates largely without ACC oversight.)
The ACC has been wholly in Republican hands since 2024; during that time, the body repealed Arizona’s Electric Efficiency Standards, which had incentivized utilities to pursue energy efficiency programs, as well as the state’s Renewable Energy Standard and Tariff, which supported the build-out of solar and wind power. “They were a rubber stamp for all our utilities and refused to even consider anything in support of protecting our climate,” Arizona State Representative Brian Garcia, who was reelected on Tuesday, said during a press call with Lead Locally this week. “At one instant, one of the commissioners told someone who got sick from the heat — who turned off their power and their AC — ‘Well, that’s on them.’ And I think our state and our communities have had enough of that.”
Though the ACC remains under Republican control despite the two Democratic additions, it puts full control within a one-seat striking distance for progressives when the other three seats are up in 2028 — a much easier fight to win, and potentially a huge one, given that the party hasn’t controlled the ACC since 1997.
Of particular concern in 2026, though, was the development of data centers. Ralph Heap, a Republican in the race who made the League of Conservation Voters’ 12-person “worst of the worst” list out of all 6,342 seats up for grabs nationwide on Tuesday, previously told the Arizona Capitol Times he supports the data center build-out in the name of American AI dominance. Incumbent Republican Kevin Thompson, meanwhile, has argued that the commission “has done its job of shielding ratepayers from costs associated with servicing data centers and other large load users.”
Voters evidently disagreed, backing Hill and Pratte, who say they support a data center moratorium. “The Corporation Commission might not be able to implement a pause, but I think they can certainly be a clearinghouse for information,” Hill told Yellow Sheet Report, an Arizona political tipsheet, acknowledging the relatively limited role the ACC actually has in regulating data centers beyond demanding transparency of utilities’ energy service agreements.
There are other concerns, too. Climate organizers zeroed in on the ACC race because of its influence over the solar buildout in the nation’s sunniest state, where nevertheless six of the state’s 15 counties have a restrictive ordinance against the resource, Heatmap Pro data shows. Commissioner-elect Pratte, a member of the Navajo Nation and the first Indigenous person elected to statewide office in Arizona, is also the co-founder of Navajo Power, a clean-energy company that helps tribal nations develop solar energy and storage projects.
Arizona Public Service and Tucson Electric Power also both have pending rate increase requests under review by the ACC; a 14% rate increase for residential customers and a 45% or more increase for data centers in the case of APS, and a 10% increase for residential customers in the case of TEP. (The APS’ rate case will likely be decided in December, before Pratte and Hill take their seats.)
Additionally, State Senator Lauren Kuby has introduced a bill to change the name of the ACC to the Arizona Public Utility Commission, a move intended to highlight to voters “its significance to their daily lives,” as she told the Arizona Capitol Times earlier this year. Sure enough, John Qua, the campaign director at Lead Locally, and Caroline Spears, the executive director of Climate Cabinet, previously told my colleague Matthew Zeitlin that part of the trouble with supporting progressive candidates in the ACC race was communicating to Arizona voters that, like the race for governor, it is a partisan election.
But given how things turned out Tuesday nationwide — a referendum on cost-of-living and, perhaps, data centers — it seems they needn’t have worried. Arizonans worked out exactly who to blame.
Electricity companies look like one of the biggest losers of the 2026 midterms.
This is Heatmap Daily, a weekday digest written by our executive editor. Subscribe here.
I’m still wrapping my head around the size and scale of the Democratic victory on Tuesday. I suspect Wall Street is, too. Yesterday, the S&P 500 gained about 1.6% as investors saw an upside in the Democratic blow-out. Today, they lost their nerve: The S&P fell almost 4.4%, and the tech-focused Nasdaq slid by more than 5%. That AI-loaded index is now down more than 10% from its all-time high in October, which means it’s technically entered a “correction.” (If it drops by 20%, it’ll be in a bear market.)
Amid the market carnage, utilities have held out alright. The Vanguard utilities index fell by less than one percent today, and two of the country’s biggest vertically integrated electricity monopolies — Duke and Southern Company — actually gained ground. Other power companies — including Xcel Energy, which serves the Midwest and Dominion Energy in the Southeast — did okay as well.
I find that surprising, because utilities strike me as one of the biggest losers of Tuesday’s election.
That’s partly because utilities showed up in surprisingly specific ways in candidate policy proposals this cycle. Last night, I wrote about how Senate Democratic candidates took a fairly moderate tack on climate and energy policy this year. What I didn’t mention is that Adam Hamilton, Kansas’ newly elected Democratic senator, called out utilities specifically in his proposal for major new transmission. One of his four big energy policy proposals is as follows:
Require competitive bidding processes for transmission projects instead of handing utility companies lucrative contracts at taxpayer expense. When a nearly half-billion-dollar transmission project is handed to a single utility with no competitive bidding, Kansas ratepayers can end up paying far more than they should. Competitive bidding has been shown to cut these costs by twenty to thirty percent. Politicians on both sides of the aisle should speak out against harmful policies that avoid competitive bidding, like the $493 million project that was handed to Evergy.
I mean, sounds great to me, but transmission policy does not normally rank among Democrats’ biggest applause lines. Hamilton’s other energy ideas are far more conventional, including ending Trump’s tariffs, his war on domestic energy projects, and restoring the clean energy tax credits.
Hamilton wasn’t alone in targeting utilities. David Pomerantz, who leads the watchdogging Energy and Policy Institute, has a great blog post today looking at utility politics in the 2026 election. He argues that we’re about to see utilities endure a much tougher oversight regime than they’ve faced in decades.
Why? There was much more attention on public utility regulators in this election than there have been in previous ones, he argues. Historically, public utility commission appointments have been sleepy affairs. But “incoming new governors Amy Acton (Ohio), Jocelyn Benson (Michigan), David Crowley (Wisconsin), Aaron Ford (Nevada), and Hannah Pingree (Maine) all campaigned overtly on a promise to appoint commissioners who would put ratepayers first,” he writes. In a few of those gubernatorial races, the losing Republican candidate had also promised to fire or replace the existing utility commissioners.
It goes beyond just oversight. The incoming governors in Pennsylvania, Iowa, and Maine have all vowed to reform or lower utility profits. Democrats won a majority on Georgia’s public utility commission — and flipped two seats in Arizona’s five-person board — promising to look closely at the utility profit structure, too.
In one state, voters even directly intervened to limit utility action. Michigan’s Proposition 2, which bars regulated utilities from making campaign contributions, passed overwhelmingly with more than 80% of the vote (although it now faces a legal challenge). And more than 100 politicians, including the winning Benson, pledged not to take utility campaign contributions.
Anyway, it’s an interesting post. You might remember I spoke to David last week for Shift Key about how the bipartisan permitting legislation would weaken monopoly utilities. As my colleagues Jael Holzman and Emily Pontecorvo wrote yesterday, Democrats and Republicans are now negotiating a top-down amendment to that permitting package. We’ll soon learn if the new version — which could come out any time in the next two weeks — preserves the same tough-on-utilities provisions that Dave praised.
When it comes to energy and data centers, everyone loves Texas. Its pro-business political consensus, unusually deregulated electricity market, wide-open plains, sunny skies, and large natural gas and oil deposits have attracted data center developers, renewables developers, liquefied natural gas export terminals, and battery storage entrepreneurs alike.
But this all happened under decades of unified Republican control of Texas’ government. That’s ending on January 19, when Gina Hinojosa is sworn in as governor alongside every other holder of statewide elected office who won this year. In Austin, they will join a Democratic majority Texas House of Representatives, which has been under Republican control since 2003.
Immediately following the election, stocks linked to data center development in Texas swooned — Elon Musk’s SpaceX is down 12.5% since Tuesday, data center developer CoreWeave is down almost 19%, Oracle is down 9%, Texas-based independent power producer Vistra is down 19%. Sterling Infrastructure, a civil construction company headquartered outside Houston, has seen its shares fall 32%.
On the campaign trail, Hinojosa called for a moratorium on data centers until the legislature could pass legislation putting guardrails around development, including protecting residential ratepayers from electricity price hikes and giving local communities more leeway to restrict and condition development. Two weeks before election day, she released a video criticizing Governor Greg Abbott’s “Batch Zero” review process — which had been broadly characterized as a “pause” when it was announced over the summer — for allowing new permits, and she said that she would issue a “ban” on all data center approvals until new laws could be passed.
When Abbott introduced his pause over the summer, Texas’s electricity market ERCOT had 474 gigawatts of data center interconnection requests in its queue (almost all from data centers), a figure he said was around five times the electricity market’s peak demand. That review is due to end next month, shortly before Hinojosa is due to take office, leaving little time for new projects to get approved before the moratorium goes into effect.
Some observers and investors took a sanguine view of Hinojosa’s data center policies. Gavin Baker, a longtime investor in SpaceX, said on X that Hinojosa’s policies “sound reasonable” and pointed to an interview she gave saying that the moratorium would be on new permits and would not affect the pipeline of permitted projects.
The data center and energy industry, however, is in wait-and-see mode when it comes to the severity of the moratorium.
“If she was thinking of trying to go after projects that had begun the construction process,” Brandt Vermillion, U.S. research lead at Modo Energy, said, “I think it would change the overall outlook a ton.”
According to Modo Energy analysis, there are some 25 gigawatts worth of projects under construction in Texas, another 4.6 gigawatts permitted, and another 90 gigawatts that are either just announced or have only submitted grid studies. If Hinojosa “is only going after non-permitted projects,” Vermillion added, then anyone thinking about the future path of data center development in Texas should be more concerned about supply chain constraints like obtaining enough chips to power the data centers.
That being said, the Texas legislature’s session doesn’t end until May 2027, meaning that Hinojosa’s pause could last several months before lawmakers put guardrails into law.
“I don’t think we’re going to not build another data center in the state,” Joshua Rhodes, a research scientist at the University of Texas at Austin, told me. “But I think that they’re going to be under quite a bit more scrutiny.”
That being said, analysts are now much more uncertain about the future path of electricity demand in the state. “Texas demand is difficult to project after Gina Hinojosa’s surprise win,” Jefferies analyst Julien Dumoulin-Smith wrote in a note to clients on Thursday.
That means more trouble for developers in Texas, especially for storage projects, which had already been seeing extremely volatile monthly revenue.
“Batteries and energy storage have been counting on demand to go up because they’re having a rough time out there right now in terms of revenues,” Rhodes said. “Demand will have a pretty big impact on supply.”
One thing the battery storage industry, as well as solar and wind developers, can cheer is that Democratic control of the governorship and the state House means that the threat of anti-renewables bills has fallen to essentially zero.
The renewables industry is hoping that data center development does continue in Texas, but that it looks more orderly and grid-connected.
Going forward, Vermillion expects that data center developers will have a harder time getting tax abatements, which means that a “well-capitalized hyperscaler” could potentially still pursue projects.
“Project A that was going to go about development in a certain way of seeking tax abatements and buying a bunch of reciprocating engines and trying to run themselves off grid” is much less likely to be able to go forward in Hinojosa’s Texas, Vermillion told me, especially as she is able to appoint new commissioners to the Texas Public Utility Commission or the Texas Commission on Environmental Quality.
Tim Woodruff, the data center lead at Modo, told me similarly. “In the near term, if you're one of the neo clouds, maybe now you start pushing a little harder on your projects that you have in MISO or in CAISO,” he said.