Lea Márquez Peterson

Commissioner

Commissioner Lea Márquez Peterson Reflects on a Year of Progress and Achievement

As 2024 draws to a close, Commissioner Márquez Peterson highlights the Commission’s dedication to shaping energy policies that balance reliability, affordability, innovation, and economic growth.

"This year, we made significant strides in modernizing our energy infrastructure, ensuring a reliable energy grid, and protecting Arizona’s ratepayers. I’m proud of the work we’ve accomplished and remain committed to ensuring a reliable and affordable energy future for all," said Commissioner Márquez Peterson.

Key Achievements

Protecting Ratepayers
Commissioner Márquez Peterson voted in favor of key decisions to safeguard ratepayer interests, including:

Rejecting approximately $200 million in ratepayer-funded programs and proposals suggested by APS.
Reducing Tucson Electric Power (TEP) bills by $11.91 monthly for average customers through adjustments in the Purchased Power and Fuel Adjustment Clause (PPFAC).
Approving a $9.5 million refund to TEP customers from uncommitted Demand Side Management Surcharge (DSMS) funds which resulted in a monthly refund of $5.63 in both June and July for the average monthly residential bill.
Focusing attention on high rates in Kingman and Lake Havasu by requesting reconsideration of the UNSE rate case.
Proposed amendments for the Arizona Water Company to introduce a PFAS Cost Recovery Mechanism and cap increases under the Sustainable Water Adjuster Mechanism. These measures will help address the challenges posed by PFAS contamination while protecting ratepayers from excessive rate hikes.
Supported the consolidation of several small water and wastewater utilities, leading to improved efficiency and lower costs for customers.

Modernizing the Grid
To meet growing energy demand and ensure grid reliability, Commissioner Márquez Peterson voted in favor of several transmission line projects, including:

A 6.6-mile transmission line connecting the Wilmot Energy Center II and its battery storage to the Tucson grid.
A 1.7-mile transmission line connecting the Sundog Solar Energy Center to SRP’s Pinal Central Substation, featuring a 200 MW solar facility and 200 MW battery storage.
Transmission lines supporting a 250 MW solar generation and storage facility in Eloy, AZ, and a 100 MW renewable energy facility and battery system in Pima County.
A 19-mile line for the Harquahala Sun Project, integrating hybrid solar photovoltaic and battery storage plants in Harquahala Valley.
Tucson Electric Power’s Midtown Reliability Project, a comprehensive upgrade replacing aging infrastructure with a new 138-kilovolt (kV) transmission line and modern substations.

Planning for Arizona’s Energy Future
Arizona is facing unprecedented energy demand from commercial and industrial customers due to population growth in parts of the state. She has committed to an "all of the above approach" in energy resources to ensure reliability and believes that "growth should pay for growth" to prevent cost shifting that could negatively affect residential customers. Commissioner Márquez Peterson took the following actions:

The Commissioner voted to acknowledge Integrated Resource Plans (IRPs) from regulated utilities, ensuring long-term strategies to meet energy needs.
Commissioner Márquez Peterson sponsored amendments for more transparency in the data and assumptions in these plans and ensured continued information on natural gas pricing to understand its future impact on customer bills.
Commissioner Márquez Peterson is proud to co-chair the NARUC / NASEO Advanced Nuclear State Collaborative which studies and promotes the advancement of small modular nuclear plants in the near future.
Approval of Trico Electric Cooperative’s community solar tariff pilot, allowing members to purchase up to 100% renewable energy.
Advocated for including regional market data in future filings to improve transparency for the public in the collaborative work of the utilities across the western U.S.
Commissioner Márquez Peterson is honored to serve as Vice-Chair for WIRAB (the Western Interconnection Regional Advisory Board)
Extended Graham County Electric Cooperative’s USDA program to attract regional businesses in rural communities.

Ensuring Seasonal Readiness

Participated in workshops on summer and winter preparedness to evaluate utility strategies for managing peak demand and maintaining reliability.
Commissioner Márquez Peterson was honored to be appointed to the national GEAR (Gas Electric Alignment for Reliability Taskforce) by NARUC.

Upholding Accountability

Imposed a $2 million civil penalty on Southwest Gas Corporation for safety violations related to defective piping.
Approved a motion to draft a letter to Congress requesting federal legislation to exempt water and wastewater utilities from CERCLA liability for managing PFAS substances “forever chemicals” that enter their facilities.

Streamlining Energy Permitting

Advocated for the federal Energy Permitting Reform Act of 2024 to streamline the permitting process for energy projects, reducing costs, and accelerating infrastructure development.

Driving Innovative Programs

Encouraged demand response initiatives, such as Trico Electric Cooperative’s program to manage peak demand through thermostat control.
Approved an adjustment to LFCR (lost fixed cost revenue) mechanisms to help support efficiency programs and ensure utilities can continue investing in initiative.

Strengthening Regional and Federal Engagement

Supported Commission and Staff participation in a coalition of 19 states in filing a Motion to Intervene and Protest in BlackRock, Inc.’s latest attempt to obtain blanket authorizations to own significant share positions of public utilities.
Supported engagement between Legal and Utilities divisions to determine the best approach for monitoring FERC-related matters and providing recommendations for action.

In closing, Commissioner Lea Márquez Peterson's efforts have led to key advancements in Arizona's energy landscape this year. By focusing on infrastructure upgrades, a reliable energy grid, and consumer protection, the Commission is setting the stage for a sustainable energy future. She is honored to be re-elected to the Arizona Corporation Commission for an additional four year term. Her office can be reached at lmarquezpeterson-web@azcc.gov.

Contact Commissioner Lea Márquez Peterson

Commissioners and their advisors are prohibited from communicating in writing, by phone or in person with individuals about the merits of any currently active contested case. All emails and letters received related to current contested cases will be filed with Docket Control and available for public inspection. See the Commission’s Ex Parte Rule and FAQs.