This is a great bit of leverage for Arizona I think and I think they should do it. They should indeed cut off the power supply to Cali if they want to force harm onto the Arizona economy. I am sure that Texas and Colorado would take similar measures if their states were going to be boycotted for no real reason.
Shut California down, they cant sustain themselves economically or with their own power or water for that matter.
Better yet just let all of the illegal immigrants move to California for amnesty but they have to stay there.