Tobin quits as utility regulator
He’ll work for Ducey; Marquez Peterson is named to replace him
Andy Tobin is out and Lea Marquez Peterson is in at the Arizona Corporation Commission, Gov. Doug Ducey announced Thursday.
The five-member commission sets rates and policies for utilities and oversees other things such as railroad crossings and business incorporation filings.
In 2015, Gov. Doug Ducey appointed Tobin, a former Arizona House speaker, to replace Arizona Corporation Commission Chairwoman Susan Bitter Smith, who resigned amid a conflict of interest challenge.
Tobin subsequently won election to the board that regulates electric, water and gas utilities and oversees other areas such as railroad crossings.
Tobin has had a rocky relationship with the other four commissioners, most recently debating what code of ethics the members should adhere to and whether the regulators should require electric companies to get more power from renewable energy sources like biomass.
Ducey’s office said Thursday that
Tobin will lead the Department of Administration, which has an interim director now.
Shortly after that announcement, Ducey named Marquez Peterson, a former president of the Tucson Hispanic Chamber of Commerce, to replace Tobin on the commission.
Marquez Peterson is the first Hispanic woman to hold statewide office in Arizona.
“Lea is extensively involved in the Southern Arizona community, having led the largest Latino business organization in Arizona, and brings decades of leadership experience that has earned her bipartisan accolades,” Ducey said in a press release.
“As an entrepreneur, she knows firsthand the challenges businesses face navigating a complex government bureaucracy, and will bring a fresh perspective on the commission.”
Marquez Peterson, a Republican, said she will run next year for a full, four-year term on the commission.
Last year, she lost a congressional bid to Democrat Ann Kirkpatrick and quit the chamber to run a public affairs firm, which she said she will step away from to work at the commission. Commissioners earn $80,000 annually.
“I come from a small business entrepreneurship background,” she said. “The role the commission has in business incorporation and hopefully streamlining how to do business in the state of Arizona I think is very interesting as well as the regulation of energy and water.”
She said she plans to immediately begin researching the other big issues the commission deals with, such as the large utility rate cases.
“I was surprised and honored to receive the phone call,” she said.
She will remain in Tucson, where her husband and two children live, and commute to her work at the commission.
Pinnacle West donated to Marquez Peterson’s bid
During her congressional run last year, Marquez Peterson received $5,000 in donations from the Tucson Electric Power CEO and $2,500 from Pinnacle West Capital Corp., the parent company of Arizona Public Service Co., the state’s biggest utility.
Pinnacle West gave Kirkpatrick the same amount during the campaign and another $5,000 afterwards to pay off campaign debt, according to campaign finance records.
She said running for the commission, she will not accept money from utilities.
“I know that from my perspective I would not be taking money from anyone where there would be deemed a conflict,” she said.
Commission elections in recent years have been controversial because Pinnacle West has at times contributed to independent groups that support the candidates who will then set rates and policies for the company and other utilities.
The company did so secretly in 2014, and then publicly in 2016. It stayed out of the commission races last year.
Resignation comes before big meeting
The resignation came about 90 minutes before the Corporation Commission met to discuss a variety of controversial topics, including whether APS should be required to file a new rate case.
APS’ last rate hike from 2017 has been the subject of a massive customer complaint that commissioners refused to dismiss last week. The commissioners are awaiting an audit of the company’s earnings and Tobin and the other commissioners have said the company should file a new rate case, which is required to make any changes to rates.
Commissioners discussed the state’s renewable-energy rules at Thursday’s meeting. The commission has required electric companies to get 15% of their electricity from renewable sources such as solar and wind by 2025, and has a separate requirement on them for energy-efficiency measures.
Tobin is a proponent of boosting those standards while also protecting Palo Verde Nuclear Generating Station by ensuring nuclear energy is counted in some way. Nuclear does not have direct carbon emissions like coal and natural gas.
Tobin also has supported requiring utilities to use more biomass energy created by burning trees harvested in Arizona. He says such a plan would reduce fire risk by thinning out overgrown forests that present a hazard in the state.
Commission Chairman Robert Burns said after the meeting that he was not told of Tobin’s resignation until the morning of the meeting, and he was not told of the Marquez Peterson appointment until it was officially announced during the meeting.
“I thought there might even be a communication between the Governor’s Office and the commission on the selection,” Burns said. “I mean that might be something that would occur but obviously that isn’t the case.”
Burns said he didn’t know Marquez Peterson.
Tobin’s 5th appointment by Ducey
It’s the fifth time Ducey has turned to the Paulden Republican. In 2015 he named Tobin director of the Arizona Department of Weights and Measures.
Next, Ducey appointed Tobin as director of the Arizona Department of Insurance, and later he added interim director of the Arizona Department of Financial Institutions to Tobin’s plate.
“I’m thrilled to be able to bring Andy back into our administration,” Ducey said in a prepared statement.
“His passion for public service is unmatched and his understanding of state regulatory and administrative policy will serve the Department of Administration well as we continue to streamline and improve government.”
Ducey also thanked Elizabeth Alvarado-Thorson for serving as interim ADOA director, and said she will remain a part of state government.