It Takes an All-of-the-Above Approach On Energy to Ensure Reliability in Arizona
It Takes an All-of-the-Above Approach On Energy to Ensure Reliability in Arizona
Commissioner Lea Márquez Peterson argues for the Arizona Corporation Commission to adopt an "Arizona first" policy on energy.
A note to our readers: Today, we are joined by Corporation Commissioner Lea Márquez Peterson, who serves on the statewide elected board that regulates public utilities and business incorporation in Arizona. She argues for an “all-of-the-above” approach to energy that insulates Arizona ratepayers from California’s policy decisions.
As a reminder, this is a guest column. It differs from our weekly round-ups, which are straight news.
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Arizona continues to be one of the fastest-growing states in the country — and for good reason. Here in the Grand Canyon State, we enjoy beautiful weather, a booming economy, and a unique culture that embraces the fact that so many Arizonans are originally from outside the state.
Top of mind for most business and community leaders is how we continue this growth and how we, as a state, ensure that we have the energy and the water resources that are needed for our existing and future residents and businesses.
At the Arizona Corporation Commission, we play an important role in economic development in that we regulate the private, investor-owned utilities in our state to ensure that we have reliable energy at affordable rates.
While serving as Chairwoman of the Commission from 2021 to 2022, I launched the Energy Reliability Summit to address this question of reliability for the upcoming summer as well as the near term. Our Commission continues to have frequent check-ins with our electric utilities with summer preparedness meetings to ensure that they are prepared for the existing energy load during our hot summers. This past summer was certainly a challenge as Arizona experienced record-breaking heat, with more than 50 days of temperatures surpassing 110°. But it’s not just our weather that we have to worry about. At the same time, we are impacted by our neighboring states and their potential lack of assured energy that is due to stiffer competition for energy resources during heat waves.
It’s no secret that our neighbor to the west — California — has experienced numerous rolling blackouts during peak periods in the summer, and we are now well aware of the stakes at hand when dealing with energy reliability. Many experts from within the energy industry have perceived California’s rolling blackouts to be the result of the state’s policy decisions to “switch” to clean energy sources rapidly rather than transition like the states around them – including Arizona. The consequences of these policy decisions made in California, unfortunately, expand well beyond state lines.
Indeed, the decisions made by California policymakers can have a real impact on those of us here in Arizona. More specifically, the decision by California policymakers to institute rolling blackouts increased the risk of energy shortages to Arizona residential customers and businesses.
This is precisely why we need an “Arizona first” mentality at the Commission to ensure that we do not experience energy shortages like California. As a Commissioner, I have fought for assurances from our utilities that we are prepared to supply energy to every Arizonan – regardless of California’s actions or how hot our summers get.
As another way to ensure energy reliability, I have been a staunch supporter of what the energy industry calls “all-source RFPs,” or “requests for proposals.” All-source RFPs essentially allow our utilities to consider all types of resources – including natural gas, wind, solar, nuclear, etc. – to produce electricity. Further, this ensures that the utility companies procure their energy based on the resources’ reliability and affordability for our customers. This also makes sure that we are making the best decisions on behalf of our ratepayers, rather than making purchases based on a political ideology.
I am a firm believer in taking an “all of the above” approach to ensuring energy reliability in Arizona. During my time as Commissioner, I have approved many solar and battery projects, as well as natural gas peaker plants, to ensure that we have a consistent source of power when the sun is not shining and the wind is not blowing. Additionally, I would like to see the inclusion of advanced nuclear technologies as the cost becomes more viable in the future.
As individuals, families, and businesses continue to flock to Arizona in droves, the demand for clean energy and new technologies will only continue to increase as well. I am proud of the work my fellow Corporation Commissioners and I have done to ensure all Arizonans have access to electricity – especially during our grueling hot summer months – but there’s no time to be complacent. At the end of the day, we live in a desert and to sustain our explosive growth, we must always be looking for new and innovative ways to meet the energy demands of Arizona families and businesses.
Lea Márquez Peterson is an Arizona Corporation Commissioner and has served statewide since 2019. She is the only Commissioner based outside of Maricopa County and served as the Chairwoman of the Commission for two years. She is currently seeking re-election. She can be reached at lmarquezpeterson@azcc.gov.