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Commissioner Lea Márquez Peterson Votes on Arizona Utilities' Future Energy Plans

Oct 10, 2024, 13:18 by Amanda Culp

Phoenix, AZ - The Arizona Corporation Commission voted on the state’s regulated utilities’ Integrated Resource Plans (IRP) which depict the utilities' plans to obtain generation resources necessary to supply customers with electricity in the future. These plans are based on economic, demographic, and weather projections. The plans describe the future energy generation resources proposed over the next fifteen years.

The IRP is updated every three years and forecasts demand and supply of energy for each utility. The process includes working with a team of resource experts, energy planners, cross-sector stakeholders to develop a reliable, cost-effective generation mix.

The Commission discussed and analyzed the following five -year action plans (2023 - 2027) for each utility:

Arizona Public Service (APS) Action Plan outlined investments in new hydrogen-capable natural gas generation, renewables, and storage. APS is also preparing to exit the Four Corners Plant in 2031. They are analyzing the use of the Palo Verde nuclear power plant to manage costs and continuing the use of all source requests for proposals to procure least-cost resources.

Tucson Electric Power (TEP) Action Plan focused on completing a 700 MW storage project, negotiating new solar and storage projects, and continuing seasonal operations at the Springerville Generating Station through 2032. TEP will continue to engage in discussions related to future workforce and coal community transition plans and continue to implement cost-effective energy efficiency programs.

Unisource (UNSE) Action Plan outlined the continuation of negotiating with developers for new solar and storage projects, implementing cost-effective energy efficiency programs, and gradually participating in western regional market initiatives.

Commissioner Lea Márquez Peterson led several modifications to the recommended order. She successfully negotiated the inclusion of more transparency in the modeling data and assumptions made. Additionally, she championed the continuation of natural gas pricing information to gain a better understanding of its impact on customers’ bills in the future. She also spearheaded an initiative to include regional market assumptions and data in future IRP filings, which will allow ratepayers and stakeholders to analyze the value and benefit of participating in a market by each utility.

"As a commissioner, I am committed to promoting transparency and accountability in our utilities’ decision-making process. Integrated Resource Plans (IRPs) play a crucial role in shaping the future of energy generation, ensuring an all-of-the-above approach that delivers a reliable and affordable mix of resources to meet our energy demands for years to come."

Commissioner Lea Márquez Peterson has served on the Commission since 2019 and is the Past Chairwoman. She is a former small business owner and previously served as the President of the Tucson Hispanic Chamber. She has spent her time on the statewide Commission focused on energy reliability at the most affordable utility rates. Her office can be reached at lmarquezpeterson-web@azcc.gov.