by Matthew Holloway | Sep 21, 2025 | News
By Matthew Holloway |
In a key vote on Wednesday, the Arizona Corporation Commission, led by Commissioner Rachel Walden, unanimously repealed the state’s Energy Efficiency (EE) and Demand Side Management (DSM) Rules. The regulations, now 15 years old, have been expired since 2020, and according to the board, have cost Arizona ratepayers more than $1 billion in additional surcharges since inception.
Both APS and TEP have exceeded the requirements, the board noted, with Commissioner Márquez Peterson explaining, “The current standard required the accumulated savings of 22% of retail sales by 2020. We’ve had(sic) reconfirmed that as of 2024, APS is at 26.2% and TEP is currently at 28.52%. Both utilities have exceeded the standard which is out of date.”
“I cast my vote to repeal the rules because the rules were not based on any cost-effectiveness tests, nor did they contain any other ratepayer protection requirements. The mandates instead passed all program costs in support of the few on the backs of all ratepayers, especially onto those who can least afford it—our low- and fixed-income ratepayers, and our hardworking Arizona families,” Commissioner Walden said in a statement Thursday.
“I fully support the use of EE mechanisms and DSM programs, which have demonstrated energy savings, especially during peak summer heating days when our energy needs have stressed the electrical grid. What I do not support is the cost shifts and economic burdens these mandated programs have created, costing ratepayers in excess of $1.1 billion.”
Commissioner René Lopez noted during the meeting that the rules “were written over a decade ago.” He added, “We’ve had a lot of changes in technology, and a lot of changes in demand are coming, It served its purpose, everyone has met the requirements, now it’s time for them to go away.”
The commission explained that the repeal of the rules does not eliminate the EE/DSM program; instead, Arizona utilities will now be required to use All-Source Requests for Proposals when they create plans to address forecasted energy demands, with EE and DSM programs continuing as two categories of solutions that can be proposed for the utility’s consideration.
“I urge technology stakeholders to continue to propose these types of solutions to offset utility generation needs,” Walden added. “The solutions must be cost-effective, and the Commission will continue to evaluate these programs on a case-by-case basis during rate cases. I recently offered an amendment to approve a Bring Your Own Device DSM program for APS customers that did not create a cost shift, and that amendment was adopted by majority vote by this Commission.”
Commissioner Márquez Peterson added in a statement, “As a Commissioner, I will continue to communicate to utilities my support for effective EE programs in future rate cases. These programs can save ratepayers on their electricity bills and help us ensure we have reliable energy during peak times of the day.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Jul 30, 2025 | News
By Matthew Holloway |
During its July 24th Contingency Open Meeting, the Arizona Corporation Commission (AZCC) unanimously assigned the construction cost of a massive 1.5-million-gallon subterranean water tank to the Sedona customers of Arizona Water Company. The decision follows a nearly four-decade efffort to find a location for the water tank that was agreeable with the City of Sedona and local residents.
According to the AZCC, the “extra costs incurred” by the water tank, concealed with a fake home, will fall “solely on the Sedona customers of Arizona Water Company.” However, Pinetop Lakes, Munds Park, and Payson will also see a significant rate increase.
According to a press release from the AZCC, for Sedona residents, the estimated rate increase is 45%, which would bring the average residential bill to approximately $60 per month. Meanwhile, other Northern Group customers will see an increase of roughly 34%, with a billing estimate of $52 per month.
Prior to the meeting, the notion of assigning the costs to the ratepayers outside of Sedona was opposed by Republican Arizona Rep. David Marshall (R-LD7), who publicly condemned it in a press release. Marshall cited the “City’s requirement that Arizona Water Company bury a new water storage tank underground and disguise it with a fake home built on top—an aesthetic demand that made the project one of the most expensive the utility has ever undertaken.”
Rep. Marshall stated, “Arizona Water Company’s northern Arizona ratepayers—including the good people of Pinetop-Lakeside, Heber-Overgaard, Rimrock, Munds Park, and the Village of Oak Creek—did not ask for these costly design features. Quite frankly, it’s absurd to ask them to fork over millions to subsidize the excessive, big-government design mandates of a city nearly 200 miles away. This is a matter of fairness and affordability. Sedona chose to inflate the cost of this project for its own benefit. The rest of northern Arizona shouldn’t be stuck footing the bill for Sedona’s multi-million-dollar expectations.”
According to the AZCC release, an amendment to the decision by Commissioner Rachel Walden resulted in the “non-operational aesthetic expenses” being shifted to Sedona Residents. “My job is to ensure expenses are just, reasonable, and prudent,” Walden said. “That is why I offered my amendment to ensure that non-operational aesthetic expenses will not be paid for by those who do not benefit from them. I thank my fellow Commissioners for fully supporting my amendment.”
The Corporation Commission said in a statement, “The Commission deemed a new tank was prudent and appropriate; however, it was adamant that the extra costs from the aesthetic requirements were not to be assigned to the other 15,000 customers who do not reside in Sedona. The City and residents expressed disapproval for construction of an above ground water tank, which is the conventional design. The Sedona Project is one of only three water tanks that have been undergrounded in the state, by Commission regulated companies.“
The construction tab for the East Sedona Water Storage Tank and Booster Project came to approximately $20 million, as reported by the Arizona Daily Independent. The Arizona Water Company explained that to obtain approval for a conditional use permit (CUP) by the Sedona Planning and Zoning Commission and City Council, it was required to comply with requirements to bury the storage tank and “camouflage” the tank by building a structure on top of the tank that resembles a home for aesthetic purposes, so that it will blend in with the neighborhood and scenery.
“Hopefully this is a strong signal to all water companies, local governments, and residents moving forward that if you require special conditions or place limitations on infrastructure based upon aesthetic preferences, you may be responsible for those extra costs,” said Chair Thompson. “I’m sympathetic to the majority of the Sedona customers who will be solely responsible for these added costs, but it is not an equitable requirement for the 15,000 customers in other communities to be responsible for millions in extra costs because a vocal minority didn’t like the way a water tank looked.”
“After a robust discussion today, the Commission reached a Decision in Arizona Water Co.’s Northern Group’s rate case that strikes a fine balance between ratepayer protections and company viability,” Commissioner René Lopez said. “Thursday’s Decision also signals to ratepayers and local governments that, even in a consolidated group, the Commission will equitably allocate costs to certain customer groups when extraordinary expenses are incurred at their request or for their exclusive benefit. Nevertheless, the compromises and decisions made ensures ratepayers continue to have access to reliable and safe drinking water in some of Arizona’s most beautiful terrains.”
“The final determination of rates for Arizona Water came after a very thoughtful discussion at the Commission about the additional requirements by the City of Sedona for the undergrounding of the water tank and the appropriateness of the financial burden on other ratepayers within their northern division,” stated Commissioner Lea Márquez Peterson, who voted in support of the amended case. “I am appreciative of my fellow Commissioners’ support for my amendment that requires the company to present possible improvements to their customer assistance programs within their next rate case.”
“I’m pleased the Commission directed Arizona Water to engage in discussions with the City of Sedona about funds to help cover the incremental costs to bury the East Sedona Storage Tank,” Vice Chair Nick Myers added. “Because the City required and is directly benefitting from undergrounding the tank, it’s only fair that they contribute financially to cover the City-imposed aesthetic costs. Otherwise, the entire incremental cost of burying the tank will be borne by Arizona Water’s Sedona System customers.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Daniel Stefanski | Jan 10, 2025 | News
By Daniel Stefanski |
The Arizona Corporation Commission is now entirely under Republican leadership.
On Monday, Lea Márquez Peterson, Rachel Walden, and Rene Lopez were sworn into office at the Arizona Corporation Commission (ACC), giving Republicans control of all five positions on the state agency. Peterson returned to office, while Walden and Lopez entered this position for the first time.
During the inaugural meeting of the new year, first-term Commissioner Kevin Thompson was voted as chairman of the ACC. Nick Myers became (what appears to be) the first-ever vice chair of the ACC.
In an exclusive comment to AZ Free News, Thompson said, “During our campaign, Commissioner Myers and I often spoke on the trail about our objectives once elected. We expected it to take our full four-year term, but instead we accomplished our goals within the first two years of office.”
Thompson added, “Looking forward to serving as Chairman, I’m confident we will be able to build upon our recent successes with this talented and motivated group of Commissioners. As Chair, my focus is going to be on ensuring our collective efforts are always pushing Arizona forward, making the Commission more efficient and responsive to the public, and never losing sight of our duties to ratepayers and the trust voters have placed in us.”
Peterson posted to her X account about her first day of this new term of office, saying, “I am honored to serving a second term at the Arizona Corporation Commission! Thank you to Chief Justice Timmer for conducting my oath of office. I’m looking forward to serving with Nick Myers, Kevin Thompson, Rachel Walden, and Rene Lopez!
Nick Myers said, “As best we can tell, the Arizona Corporation Commission has never had a Vice-Chairman position. Today we made history… Again. After I nominated Commissioner Kevin Thompson as the new chairman, he nominated me as the very first Vice-Chairman!”
Rachel Walden wrote, “It’s official! Thank you to the Commission staff for organizing today’s swearing in ceremony and agenda. Thank you to my friends and family for attending! And a massive thank you, Arizona! It’s an honor to go to work for you.”
All five commissioners are excited about their upcoming work at the ACC over the next two years – even in a divided state government with a Democrat as Governor and Republicans maintaining control of the Arizona Legislature. In his remarks following his unanimous election as chairman of the ACC, Thompson said, “I want to continue to support this Agency and build upon a culture of success and further ensure the Commission is a place the brightest and best want to work. Where we can all be excited to step foot in this building and be proud of what we do to ensure Arizona remains a great place for our children and grandchildren and businesses for decades to come.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Nov 18, 2024 | News
By Daniel Stefanski |
Arizona’s Corporation Commission will be completely governed by Republicans after the party experienced a clean sweep of three contests during November’s General Election.
Republicans emerged victorious over their Democrat opponents for three Corporation Commissioner spots on the ballot. Those individuals were newcomers Rachel Walden and Rene Lopez, and incumbent Lea Márquez Peterson, finishing in that order. Márquez Peterson received 100,000 more votes than the fourth-place candidate.
After winning the election, Walden released a statement, saying, “It is a great honor to be elected to the Arizona Corporation Commission. Thank you. To all of the volunteers who knocked on doors, made calls on my behalf, and put up signs. I am so grateful for all of the grassroots efforts. But I am especially grateful for the hundreds of thousands of votes. Thank you for trusting me to serve on the Arizona Corporation Commission. I look forward to serving you to make sure our utilities are affordable and reliable.”
Lopez wrote, “Thank you to everyone for your vote and to: Jessica, Brianna, Andrew & family for your sacrifices in supporting me on this journey. All the PCs, LDs, clubs, Rep Women’s clubs for the opportunities, your work and support. Rachel and Lea for the year long grind. We did it!”
Márquez Peterson said, “Thank you to every campaign volunteer and supporter across the state. I’m honored to continue to serve at the Arizona Corporation Commission for a second term!”
In an exclusive statement to AZ Free News about the coup for Republicans, current Commissioner Kevin Thompson, said, “Despite liberal activist groups spending millions of dollars this cycle to defeat Republican Commission candidates, Arizona voters demonstrated they want Commissioners who will ignore activist politics and prioritize reliability and affordability for ratepayers.”
Thompson added, “The current Commission has focused on the long term reliability of our grid and doing what is best for Arizona, not the activists who want to turn us into another California at the expense of ratepayers. I’m confident the incoming Commission will build upon that work and make sure Arizona remains successful and affordable for the foreseeable future.”
Despite Democrats winning the major statewide offices in 2022 (Governor, Attorney General, and Secretary of State), Republican majority control of this Commission has been a bright spot for those attempting to keep leftwing policies from taking root and blossoming in Arizona. According to its website, the ACC works to ensure “safe, reliable, and affordable utility services,” and Republicans have been instrumental in directing policies to do just that for the state. Without a single Democrat on the panel going forward, starting in January, Republicans will have even more of an opportunity to enact their vision for Arizona utilities and other areas within their jurisdiction on the Commission.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
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