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TED: GOOD EVENING, AND WELCOME TO THIS AZ VOTES 2024 SPECIAL EDITION OF "ARIZONA HORIZON."

I'M TED SIMONS.

WE FEATURE A DEBATE FOR THE SIX CANDIDATES RUNNING FOR THREE OPEN SEATS ON THE ARIZONA CORPORATION COMMISSION, REGULATES MOST WATER AND POWER UTILITIES INCLUDING RENEWABLE ENGINEERS AND COMMISSIONS.

MANAGES RAILROAD AND PIPELINE SAFETY AND HAS EXECUTIVE AND LEGISLATIVE FUNCTIONS.

CANDIDATES WILL BE GIVEN 60 SECONDS TO REPLY AND THERE WILL BE REBUTTALS.

INTRODUCE THE DEMOCRATS, DEMOCRAT YLENIA AGUILAR, ELECTED MEMBER OF WATER CONSERVATION DISTRICT.

JONATHON HILL, REPUBLICAN, RENE LOPEZ, REPUBLICAN LEA MARQUEZ PETERSON, SITTING COMMISSIONER.

JOSHUA POLACHECK, FORMER FOREIGN SERVICE OFFICER AND RACHEL WALDEN, MEMBER OF MESA SCHOOLS GOVERNING BOARD.

LET'S START WITH THE OPENING STATEMENTS AND BEGIN WITH YLENIA AGUILAR.

>> GOOD EVENING, I'M YLENIA AGUILAR.

A MOTHER, AN ADVOCATE, A FORMER SCHOOL BOARD MEMBER AND MEMBER OF THE CENTRAL ARIZONA WATER CONSERVATION DISTRICT BOARD.

I'M RUNNING FOR ARIZONA CORPORATION COMMISSION BECAUSE FAMILIES LIKE MINE ARE UNABLE TO KEEP UP WITH RISING COSTS IN UTILITIES.

UNDER THE REPUBLICAN LEADERSHIP WE'VE SEEN OVER HALF A BILLION DOLLARS SINCE 2023.

WE NEED A LEADER WHO WILL UPHOLD THE ARIZONA CONSTITUTION AND ENSURE THAT WE GET THE BEST DEAL POSSIBLE FROM THE UTILITIES AND KEEP OUR RATES LOW, AND ALSO ENSURE THIS WE HAVE A SAFE, RELIABLE AND DIVERSE GRID.

I WANT TO BE THAT PERSON, THANK YOU.

TED: THANK YOU VERY MUCH.

WE NOW TURN TO JONATHON HILL.

>> GOOD EVENING, MY NAME IS JONATHON HILL, ORIGINALLY FROM KINGMAN, GREW UP IN THE PHOENIX AREA AND LIVE IN TEMPE.

MY BACKGROUND IS IN ENGINEERING AND GEOLOGY.

I'VE WORKED AT ASU ON NASA SPACE MISSIONS, INCLUDING THE SPIRIT AND OPPORTUNITY MARS ROVERS, TWO ASTEROID MISSIONS AND JUPITER MISSION THAT WILL HOPEFULLY LAUNCH TWO WEEKS FROM TODAY.

I STARTED WORKING ON THE MISSIONS AS AN ENGINEER WITH MASTERS IN AEROSPACE ENGINEERING AND FELL IN LOVE WITH THE WORK WE'RE DOING ON THE OTHER PLANETS AND DECIDED TO SWITCH TRACKS AND GET MY Ph.D. ENGINEERING EXPERTISE WHEN IT COMES TO WATER DISTRIBUTION SYSTEMS BUT THE GEOLOGIC EXPERTISE WHEN IT COMES TO MANAGING PRECIOUS GROUND WATER RESOURCES.

TED: THANK YOU VERY MUCH.

NOW WE TURN TO RENE LOPEZ.

>> HELLO, ARIZONA, THANK YOU FOR THE OPPORTUNITY TODAY AND WANT TO REPRESENT YOU ON THE ARIZONA CORPORATION COMMISSION.

I'M AN ARIZONA NATIVE AND HAVE DEGREE IN NUCLEAR ENGINEERING WITH MINOR IN DIRECT NUCLEAR DIVERSION.

I WORKED IN GAS AND OIL INDUSTRY AND CAME BACK TO ARIZONA WORKING IN I.T.

I SERVED ON CHANDLER CITY COUNCIL FIGHTING FOR RESIDENTS FOR CHANDLER AND WINNING FOR THEM, WE GOT CHANDLER TO BE LOWEST COST OF SERVICE IN ANY MARICOPA COUNTY AND TOOK THE FOURTH LARGEST DISTRICT TO THE ARIZONA CORPORATION COMMISSION TO FIGHT FOR YOU AND MAKE SURE RATES STAY AFFORDABLE.

THANK YOU.

TED: THANK YOU VERY MUCH.

AND NEXT WE HEAR FROM LEA MARQUEZ PETERSON.

>> I'M LEA MARQUEZ PETERSON AND RUNNING TO CONTINUE TO SERVE OUT CORPORATION COMMISSION.

I'M A WIFE, MOTHER AND FORMER BUSINESS OWNER AND SERVED AS MEMBER OF TUCSON HISPANIC CHAMBER, I'M PROUD OF THE WORK WE'VE BEEN DOING ON THE COMMISSION, ARIZONA IS A LEADER ON AFFORDABLE COSTS.

ARIZONA IS SECOND LOWEST IN ENERGY COSTS IN THE NATION AND HAS ONE OF THE MOST RELIABLE ENERGY GRIDS.

I HAVE A PROVEN TRACK RECORD.

FIGHTING FOR RATEPAYERS, AS WELL AS HELP PROTECT OUR MOST VULNERABLE CITIZENS FROM SUMMER SHUTOFFS.

YOU HAVE AN INTERESTING AND CHALLENGING DECISION TO MAKE IN THE UPCOMING ELECTION, SHOULD ARIZONA CONTINUE TO BE THE LEADER WE ARE OR GO BACK TO CALIFORNIA-STYLE POLICIES.

CONSIDER ME IN THE UPCOMING ELECTION.

THANK YOU VERY MUCH.

TED: THANK YOU VERY MUCH.

TIME FOR JOSHUA POLACHECK'S OPENING STATEMENT.

>> THANK YOU FOR TAKING THE TIME TO WATCH ME OR LATER ON YouTube.

I THANK MY RUNNING MATES, MYSELF, I GREW UP ACROSS THE RURAL WEST, ENDED UP DOING MIDDLE SCHOOL AND HIGH SCHOOL AND TUCSON AND COMMISSIONED AS UNITED STATES FOREIGN OFFICER.

I HELPED TO PROTECT AMERICAN INTERESTS AND ADVANCE AMERICAN VALUES OVERSEAS.

WHEN I CAME HOME TO RAISE MY FAMILY IN 2019, I REALIZED THERE WAS A BIG NEED TO PROTECT THE FAMILIES IN THIS STATE AGAINST RAPTIOUS CORPORATIONS STEALING FROM OUR POCKETS.

CORPORATION COMMISSION HAS INCREASED RATES AND REDUCED RELIABILITY.

WE WANT TO RETURN THE CORPORATION COMMISSION TO CORE CONSTITUTIONAL DUTIES OF PROTECTING ALL ARIZONA CITIZENS AND ENSURING YOU GET AFFORDABLE AND RELIABLE SAFE UTILITIES.

THANK YOU.

>> THANK YOU VERY MUCH.

TED: MS. AGUILAR, FORMER COMMISSIONER -- I'M SORRY, WE HAVE TO WRAP UP -- I'M SO SORRY.

YOU GO READ.

>> I'M RACHEL WALDEN, RUNNING FOR THE COMMISSION TO UPHOLD THE ARIZONA CONSTITUTION AND MAKE SURE WE HAVE AFFORDABLE AND RELIABLE UTILITIES.

I'VE LIVED HER 34 YEARS, I WENT TO ARIZONA FOR UNDERGRAD AND GRADUATE EDUCATION AND FOR TEN OF THE YEARS CLIENTS WERE LARGE MARKET CORPORATIONS.

I'M A PROVEN FIGHTER, I SERVE ON THE MESA SCHOOL BOARD, I PRIORITIZE ACADEMIC ACHIEVEMENT, TRANSPARENCY AND UPHOLD THE RIGHTS OF THE PEOPLE.

YOU CAN LEARN MORE ABOUT ME AT ELECT RACHEL HOLDEN.COM.

TED: MY APOLOGIES.

WE START WITH YOU RIGHT NOW.

AN OUTGOING MEMBER SAYS THE COMMISSION NEEDS A SHAKE-UP TO GAIN RENEWED FOCUS TO SERVING THE PEOPLE OF THE STATE IS.

THE CORPORATION COMMISSION EFFICIENTLY SERVING THE PEOPLE OF ARIZONA?

>> YES, I THINK WE'RE SEEING A SHAKE-UP ALREADY.

THERE WERE A LOT OF CHANGES IN 2022, AND A STRONG TEAM ON THE COMMISSION, THEY HIRED A NEW EXECUTIVE DIRECTOR, THEY MADE EVERYBODY COME BACK TO WORK, EVERYBODY WAS ON WORKING FROM HOME.

THERE WAS AN EMPLOYEE WORKING OUT OF STATE.

THEY MADE CHANGES TO THE WEBSITE FOR CORPORATE AND LLC FILEINGS AND HELPED GAIN MORE EFFICIENCIES, WE ARE THE SLOWEST STATE FOR PASSING RATE CASES.

ARIZONA IS DOING AN 18 MONTHS, WE'RE CONTINUING TO WORK ON THAT.

IN MY WORK, I WAS ABLE TO CREATE PROCESS EFFICIENCIES TO STREAMLINE ADMINISTRATION AND THAT'S SOMETHING I'LL BE ABLE TO PICK UP WHEN I GET ELECTED TO THE COMMISSION, AND WE'RE SEEING A ROLLBACK IN GOVERNMENT MANDATES THAT INCREASED RATES.

THERE'S A LOT OF POSITIVE CHANGES THAT SERVE THE RATEPAYER.

TED: MS. AGUILAR, SUFFICIENTLY SERVING THE PEOPLE OF ARIZONA, YOU SEE THAT AS IT STANDS NOW?

>> SINCE 2023 WE'VE SEEN HALF A BILLION DOLLARS OF CASES APPROVED FOR UTILITIES AND THE COMMISSION IS UNDER A LAWSUIT.

THERE'S A LAWSUIT BECAUSE OF DISCRIMINATION AND NO INTEGRITY.

PEOPLE CANNOT PAY THEIR BILLS.

WE'RE TRAVELING THE STATE.

WE'RE HEARING THE STORIES, PEOPLE CAN'T AFFORD TO HAVE THE RATE INCREASES, THERE IS LACK OF RELIABILITY, THERE ARE SO MANY ISSUES WITHIN OUR CORPORATION COMMISSION, AND WE'VE BEEN UNDER REPUBLICAN LEADERSHIP FOR DECADES.

WE NEED TO CHANGE THAT.

IF YOU WANT TO SEE CHANGE, YOU NEED TO VOTE FOR THAT CHANGE.

THAT IS PEOPLE WHO UPHOLD THE CONSTITUTION AND ENSURE WE'RE NOT UTILITY FRIENDLY THAT WE ARE DOING WHAT IS RIGHT FOR THE RATEPAYERS, THAT IS ENSURING WE GET THE BEST RATES FROM UTILITIES.

TED: MRS. MARQUEZ PETERSON, NEEDS A SHAKE-UP, MAYBE TARGETING YOU, I'M NOT SURE.

DO YOU AGREE WITH IT NEEDS A SHAKE-UP IN LIGHT OF WHAT YOU HEARD.

>> I DON'T AGREE.

WE MADE INCREDIBLE CHANGES BUT LOOK AT WHAT'S THE PURPOSE OF THE COMMISSION.

THE COMMISSION IS CONSTITUTIONALLY CREATED TO PROVIDE JUST AND REASONABLE RATES.

NATIONAL SURVEYS THAT SHOW WE'RE SECOND LARGEST IN ENERGY COSTS IN THE NATION.

ONE OF THE MOST RELIABLE ENERGY GRIDS.

WE HAVE 40 TO 50 RATE CASES IN A YEAR AND IMPORTANT WE'RE PROVIDING THE INVESTMENT DOLLARS TO KEEP THE ENERGY GRID RELIABLE.

THERE ARE IMPROVEMENTS, OPERATIONAL IMPROVEMENTS TO WORK ON, BUT WE'RE DOING A GREAT JOB AND PEOPLE ACROSS THE NATION ARE NOTICING.

TED: OKAY, MR. POLACHECK?

>> WE HEAR LEA TALKING ABOUT HOW THEY'RE DOING A GREAT JOB.

WE'VE SEEN RECORD INCREASES, THEY'RE UNDER A LAWSUIT BECAUSE THEY FIRED CHIEF COUNSEL AND HIRED SOMEONE WHO WASN'T A LAWYER WHO CAME FROM AMONG THE MOST EXTREME MEMBERS OF THE REPUBLICAN CAUCUS IN WASHINGTON.

THEY HIRED A WASHINGTON LAWYER TO BE LEAD COUNSEL, SOMEONE WHO WASN'T A LAWYER IN ARIZONA AND NOW UNDER A LAWSUIT FOR THAT.

IN ADDITION TO THAT, THE PEOPLE IN ARIZONA KNOW THAT THEIR RATES HAVE BEEN GOING UP IF YOUR HAPPY WITH YOUR RATES, THE FOLKS OVER HERE WHO ARE GOING TO KEEP THINGS THE WAY THEY'RE GOING, IF YOU WANT TO SEE CHANGE, YOU HAVE A CLEAR CHOICE.

TED: QUICKLY, PLEASE.

>> WE'RE SEEING INFLATION, THE COST OF LIVING GOING UP.

COST OF SUPPLY PRODUCTS GOING UP AND PLAYED A ROLE IN RATE CASES.

TED: MR. LOPEZ, THE IDEA OF SUFFICIENTLY SERVING THE PEOPLE OF ARIZONA WHEN PEOPLE SAY THERE NEEDS A SHAKE-UP THERE.

>> THERE IS GOVERNMENT AND GOVERNMENT ISN'T PERFECT.

WHAT GOVERNMENT HAS DONE, THEY HAVE DRIVEN ARIZONA TO THE 49th CHEAPEST COST OF ENERGY IN THE COUNTRY.

SOMETHING IS GOING WELL.

THERE CAN ALWAYS BE IMPROVEMENTS.

I HAVE PROCESS OF IMPROVEMENT.

AS WE DID IN THE FOURTH LARGEST CITY IN CHANDLER.

WE LOWERED THE PROPERTY TAX SEVEN TIMES IN A ROW, WE GOT THE COST OF SERVICE FOR WATER DOWN TO SOME OF THE LOWEST IN THE COUNTY BUT HAD TO RAISE RATES.

RAISING RATES IS BASED ON INVESTMENT OF PRIVATE UTILITIES THEY'VE DONE IN THE PAST TO GET A JUST AND REASONABLE RETURN.

SO RATES ARE GOING TO GO UP, AND LOOK, I'M NOT SAYING THOUGH WE'RE THE 49th CHEAPEST, THE RATES THAT ARE GOING UP, WE'RE FEELING THE PAIN, THE HOUSEHOLDS, THE BUSINESSES.

WE'RE THE SLOWEST SINKING SHIP, WE CAN DO BETTER, WE CAN PARSE THOSE OUT TO BE AS REASONABLE AS POSSIBLE, BUT THEY'RE ALLOWED TO RECOVER.

TED: GET IN ON THIS PLEASE.

>> WE NEED TO ASK THE PEOPLE OF ARIZONA, DO THEY THINK THE CORPORATION COMMISSION HAS BEEN FIGHTING FOR THEM?

I THINK THE ANSWER IS NO.

YOU KEEP HEARING THEM REFER TO THE SURVEY THEY'RE THE 49th CHEAPEST POWER RATES IN THE COUNTRY.

THIS IS THE SURVEY CONDUCTED BY WALLETHUB, WHICH IS AN APP MOST PEOPLE HAVE NEVER HEARD OF.

AS SOMEONE WHO DOES SCIENCE PRFESSIONALLY, IT IS AN EMBARRASSMENT, FATALLY FLAWED AND GAVE A RESULT THAT THE WRITERS WANTED.

SO THE FACT YOU'VE BEEN ON THE COMMISSION FOR FOUR YEARS ALREADY, HAVE YOU ALL THE RESOURCES, ALL THE RESEARCH AVAILABLE TO THE COMMISSION AND THE ONE SURVEY YOU CAN FIND THAT SAYS YOU DID A GOOD JOB CAME FROM AN APP PEOPLE HAVE NEVER HEARD OF IS EMBARRASSING.

>> THEY ARE CLOSING PIPELINES AND NOT LEASING FEDERAL LANDS.

WE'RE SEEING RATE CASES IN NEW YORK, COLORADO GOING UP.

234 ARIZONA YOU SEE 8 OR 10% INCREASE, WE'RE PROVIDING LOW COST OF SERVICE.

PEOPLE NEED TO KNOW THERE IS A MORATORIUM WHERE NO RATE CASES WERE HEARD FOR SEVERAL YEARS.

SOME OF THE UTILITIES HAVEN'T HAD A PRICE INCREASE IN EIGHT OR TEN YEARS.

PRICES HAVE GONE UP.

ENERGY TRACKS INFLATION, THE COST OF NATURAL GAS AND THINGS FLUCTUATE WITH THE MARKET.

WE'RE SEEING MAJOR INCREASES IN PRICING FROM THE FEDERAL GOVERNMENT, FROM INFLATION AND THE COMMISSION IS DOING EVERYTHING THEY CAN TO KEEP THE PRICES AS LOW AS POSSIBLE.

TED: MS. AGUILAR?

>> ARIZONA, DO YOU THINK UTILITY COSTS ARE THE SECOND LOWEST IN THE COUNTRY?

THEY'RE NOT.

AND THE STUDY IS REFERENCING THAT WE ARE ABOVE ELECTRICITY COSTS THE NATIONAL AVERAGE, AND YOU HAVE TO TAKE INTO CONSIDERATION ARIZONA HAS VERY MILD WINTERS SO WE DON'T USE A LOT OF NATURAL GAS.

YOU HAVE TO LOOK AT THOSE THINGS LOOKING AT THE SURVEYS.

THAT MAY BE SKEWED TO A CERTAIN WAY.

LOOK AT ALL THE DATA AND THE FACTS AND THINK ABOUT IT, ARIZONANS YOU HAVE THE OPPORTUNITY TO KNOW, YOU'RE THE ONES PAYING ELECTRICITY BILLS.

TED: IS THERE CHERRY PICKING OF DATA HERE?

>> LOOK AT FACTS, IF YOU DON'T LIKE THAT SURVEY, ARIZONA IS 8% THAN THE NATIONAL AVERAGE.

LOOK AT THE WEST IN CALIFORNIA, OPPONENTS ARE SUPPORTING OVERDEPENDENCE ON RENEWABLE ENERGY, PUTTING THE GRID AT RISK.

YOU'VE SEEN WHAT'S HAPPENING IN CALIFORNIA HAVING INCREDIBLY HIGH RATES.

WE NEED TO CONTINUE AS A LEADER IN ENERGY COSTS AND RELIABLE ENERGY.

TED: MR. POLACHECK?

>> I'M GLAD MS. WALDEN DECIDED TO BRING UP THE FACT THAT RATES ONLY GO IN ONE DIRECTION BUT NOT BRINGING UP THE CASES OF NEVADA, WYOMING AND SOUTHERN FLORIDA WHERE AS THEY HAVE OPENED UP THE GENERATION MARKET, OPPONENTS SUPPORT, THAT PUTS THE SUM ON THE MARKET AND PICK WINNERS AND LOSERS ON THE GENERATION SIDE.

WE NEED AN ALL OR ABOVE APPROACH IN NEVADA AND ARIZONA.

RATES HAVE GONE DOWN FOR THE LAST COUPLE YEARS.

IN WYOMING RATES ARE ABOUT TO GO DOWN AND IN FLORIDA AS WELL.

IN ARIZONA, YOU HAVE A COMMISSION COMMITTED TO DOING THINGS THE OLD WAY BECAUSE THAT'S HOW THEY KNOW PEOPLE WHO PULLED THEIR STRINGED TO HAPPEN.

>> COMPARING WYOMING TO ARIZONA IS LIKE COMPARING NEW YORK TO DELAWARE.

THESE ARE COMPARISONS -- >> COMPARING WYOMING TO ITSELF.

>> BUT TRYING TO COMPARE IT TO ARIZONA.

LOOK, IN THE END, IT COMES DOWN TO FIGHTING FOR AFFORDABILITY FOR THE RATEPAYER.

THE COMMISSION HAS OPENED UP PUBLIC MEETINGS TO THE STS, YOU GO OUT THERE.

THEY'RE RUNNING AROUND THE STATE AND SEEING THEM FACE-TO-FACE.

THEY'RE RUNNING OUT THERE MAKING SURE PEOPLE ARE BEING HEARD.

AFFORDABILITY, WE NEED TO LOOK AT POLICY OF YES THE PAST AND THE FUTURE.

WE'RE NOT SAYING THAT THE ACC IS PERFECT AND CAN HAVE IMPROVEMENTS.

WE ARE OF THAT APPROACH AND I DON'T KNOW WHERE MR. POLACHECK SAYS THERE IS DOUBTS US PROVIDING OIL OR GAS MONEY, WE'RE TRYING TO SNEAK SOMETHING IN.

ALL ABOVE APPROACH IS IN, ALL OF IT.

EVERY GENERATION TYPE TO ENSURE WE PULL ON THE LEVERS TO HELP AFFORDABILITY TO ALL ARIZONANS ACROSS THE STATE.

TED: MR. HILL, LAST WORD ON THIS.

>> YOU MENTIONED ABOUT THE COMMISSION TALKING TO THE PEOPLE.

I WAS OUT IN MOHAVE COUNTY IN LAKE HAVASU CITY LAST WEEK, THEY INVITED THE ENTIRE COMMISSION TO COME OUT BECAUSE OVER 12,000 PEOPLE IN THE CITY, RELATIVELY SMALL CITY, SIGNED THE PETITION ASKING THE COMMISSION AND UTILITY PROVIDERS FOR SOME RELIEF ON THE HUGE PRICE INCREASES THEY'VE SEEN.

NO ONE, INCLUDING SITTING COMMISSION PRESIDENT MARQUEZ PETERSON ATTENDED.

WHEN YOU ASK WHAT THE EXPERIENCE IS, THAT DOESN'T TRACK.

TED: YOU'RE THE LAST WORD.

>> AND I APPRECIATE THAT POINT.

I HAVE BEEN VERY RESPONSIVE TO RATEPAYERS WORKING WITH STATE LEGISLATORS AND OTHERS BECAUSE THERE IS A CONCERN ABOUT THE INCREASED USAGE IN MOHAVE COUNTY AND KINGMAN.

I'VE SPOKEN TO DOZENS OF PEOPLE MAKING SURE WE HAD LOW-INCOME BILLINGS IN PLACE.

UNISOURCE HAD MULTIPLE SERVICE CONVERSATIONS WITH THEM.

WE HAVE WRITTEN A LETTER TO THE CHAIRMAN ASKING WE RECONSIDER THE DESIGN ON THE RATE CASE.

>> WHAT WAS HIS RESPONSE?

>> WELL, HE HAS RESPONDED HE'S NOT WANTING TO REOPEN THAT.

I KNOW MR. HILL WENT UP TO MOHAVE COUNTY -- THAT'S NOT HOW IT WORKS WHEN.

CHAIRMAN IS IN THE POSITION, THEY SET THE AGENDA.

WE NEED THE CHAIRMAN TO PUT IT ON AGENDA TO TACKLE RATE DESIGN.

>> I WANT TO GET TO ANOTHER ASPECT I HEARD A LITTLE BIT ABOUT, MARKET PRINCIPLES.

HOW MUCH SHOULD MARKET PRINCIPLES IMPACT DECISIONS MADE BY THE COMMISSION?

>> WELL, I THINK THIS COMMISSION WAS SET OUT SO WE CAN GET THE BEST RATES POSSIBLE, AND WE'RE TALKING ABOUT AN ALL ABOVE APPROACH.

WHY CAN'T WE TALK ABOUT A BEST APPROACH FOR ARIZONANS, AND THAT MEANS FOLLOWING THE MARKET, AND THAT IS RENEWABLES ARE THE LOWEST, ESPECIALLY THE LOWEST COST FOR ARIZONANS AND COULD BE MOVING IN THAT DIRECTION, BUT WE NEED POLICIES AND LEADERS WHO ACTUALLY BELIEVE THAT'S THE DIRECTION WE NEED TO GO IN AND ENSURING WE'RE GETTING LOW RATES FOR OUR CONSUMERS, AND THAT, FOR ME, I THINK THAT IS WHAT WE'RE ELECTED TO DO, WHICH IS ENSURE WE'RE GETTING THE BEST RATES POSSIBLE FOR THEM, WHICH IS AFFORDABLE RATES, THAT'S THROUGH FOLLOWING WHAT'S BEST, WHAT'S THE MOST AFFORDABLE.

TED: MS. WALDEN, MARKET PRINCIPLES OVERRIDING ASPECT ON WHAT THE COMMISSION DOES AND DECIDES?

>> THE MARKET DETERMINES THE CHEAPEST OPTION OUT THERE.

WE HAVE TO GO TO A GREEN PORTFOLIO, WE TALKED ABOUT THIS OVER MULTIPLE DEBATES WE'VE DONE.

WHERE IS THE MONEY GOING TO COME FROM?

THE UTILITY IS GOING TO TAKE LOANS AND FUND INVESTORS THROUGH THE GREEN TRANSITION.

THAT WILL GET PASSED DOWN WITH THE RATE OF RETURN.

IF WE PASS DOWN BECAUSE A SEMICONDUCTOR PLANT IS COMING HERE, FOR EXAMPLE, THEY'RE GOING TO PAY TO HARD KNOW THE GRID TO MAKE SURE THE GRID CAN HANDLE THE GENERATION AS THE DEMAND FOR ENERGY GOES HIGHER AND HIGHER BECAUSE OF ELECTRICAL VEHICLES, THEY DO AN RFP AND BID WHAT'S THE CHEAPEST SOURCE OF GENERATION, THAT'S WHAT WE MEAN BY ALL OF THE ABOVE, WE'RE NOT RULING ANYTHING OUT.

THERE'S NO MANDATES FOR WHAT REPUBLICANS WANT TO DO.

WE'LL ALLOW ALL OPTIONS.

LET THE MARKET DETERMINE WHAT'S THE CHEAPEST OPTION AND BRING THE OPTION IN AND HAVE THE RELIABILITY SO WE DON'T HAVE BROWNOUTS AND BLACKOUTS.

TED: MR. HILL, LETTING THE COMMISSION DETERMINE THE OPTION?

>> THE CORE PURPOSE OF THE CORPORATION COMMISSION, SET UP BY OUR STATE CONSTITUTION TO REGULATE THE MONOPOLIES.

YOU DON'T HAVE A CHOICE WHO YOU BUY THE PRODUCT OR SERVICE FROM.

DEPENDING WHERE YOU LIVE, WHO YOU BUY YOUR WATER OR GAS OR ELECTRICITY IS SET IN STONE.

MARKET FORCES DO NOT APPLY TO MONOPOLIES, THAT'S WHY THEY'RE OUTLAWED THROUGHOUT THE COUNTRY EXCEPT IN THE RARE CIRCUMSTANCES.

SO THE COMMISSION NEEDS TO TAKE RESPONSIBILITY SERIOUSLY AND MAKE SURE THEY ARE PROPERLY REGULATING UTILITIES TO REPLICATE THE MARKET FORCES THAT SHOULD BE ACTING ON THEM BUT IMMUNE FROM.

TED: MS. MARQUEZ PETERSON, YOU ARE REGULATING UTILITIES, OKAY?

HOW MUCH DO YOU STAND BACK AND SAY MARKET, DO YOUR THING?

>> SEES ON THE INTERESTING, I WANT TO DEFINE THE ALL OF THE ABOVE APPROACH WE'RE TALKING ABOUT.

FOR ME AND RACHEL AND RENE, SUPPORTING ALL TYPES OF ENERGY GENERATION.

30% OF ENERGY COMES FROM NUCLEAR POWER, THE PALO VERDE NUCLEAR POWER STATION.

20% FROM COAL.

NATURAL GAS.

SOLAR AND WIND AND HYDROELECTRIC AND NEW TECHNOLOGIES COMING.

WE NEED THE UTILITIES TO USE ALL SOURCES OF APPROVAL TO FIND THE MOST RELIABLE AND AFFORDABLE ENERGY SOURCES FOR STATE.

THAT'S THE WAY WE'VE BEEN DETERMINING HOW WE GO ABOUT ENERGY SOURCES WE'VE BEEN GOING ABOUT.

WE HAVE LOT OF LARGE COMPANIES REQUESTING RENEWABLE POWER AND SOURCES, UTILITIES ARE RESPONDING TO THE CUSTOMERS.

TED: RESPOND, PLEASE, MR. POLACHECK.

>> WHEN WE TALK ABOUT RETURNING THE MARKET PRINCIPLES.

THE CURRENT CORPORATION COMMISSION ARE A SET OF REGULATIONS THAT ARE OLDER THAN I AM THAT TELL THE UTILITIES THAT THEY HAVE TO RELY A CERTAIN TYPE OF GENERATION, AND THESE REGULATIONS DID NOT ANTICIPATE THAT WE ARE GOING TO HAVE A REVOLUTION IN OUR ENERGY PRODUCTION, AND INSTEAD, WE JUST HAD A ONE GIGAWATT, A THOUSAND MEGAWATT PROPOSAL BY APS TO BRING IN NEW GENERATION TO THE GRID.

APS WOULD HAVE BEEN HAPPY TO BE 100% CLEAN ENERGY THAT WE OWNED IN OUR STATE AND THE CORPORATION COMMISSION LEANED ON THEM TO TAKE 250 MEGAWATTS AND BUILD NEW FOSSIL FUEL CAPACITY TO MAKE US RELIANT ON THE FOSSIL FUEL SUPPLY CHAIN INSTEAD OF BUILDING ENERGY INDEPENDENCE IN OUR STATE.

TED: YOU ARE SHAKING YOUR HEAD.

>> I DON'T KNOW WHERE HE'S GETTING THE FACT TA OUR APPROACH HAS TO EDICT A CERTAIN COMMISSION.

THAT ALL OR ABOVE APPROACH, WE NEED ALL THIS.

TALK ABOUT GREEN AND SOLAR OR WIND -- >> THEY ARE LETTING THEM PUT THEIR WORDS INTO OUR MOUTHS.

>> LET HIM SPEAK, PLEASE.

>> WE ARE NOT IMPARTIAL TO WHATEVER THE GENERATION IS GOING TO BE.

WE DON'T KNOW WHERE THE ADVANCEMENTS IN TECHNOLOGY ARE GOING TO COME FROM.

WE DON'T KNOW WHERE THE COSTS OF GAS, COAL, ANY OF IT IS GOING TO HAPPEN.

ADVANCEMENTS IN NUCLEAR COULD COME THROUGH.

THAT'S WHY WE NEED THE ALL OR ABOVE APPROACH.

SOLAR IS THE APPROACH.

THE AMOUNT OF DATA WITH THE COMMAND CENTERS AND THE AMOUNT OF PEOPLE COMING IN, NOT ANY ONE OF THESE MAKES UP THE AMOUNT ENERGY THAT IS NEEDED TO HELP SUPPLY AND KEEP US COOL IN THE SUMMERS AND KEEP OUR BUSINESSES RUNNING.

THAT IS WHY WE WANT THAT APPROACH AND THE BALANCE BETWEEN THE AFFORDABILITY THAT WAS TALKED ABOUT, WE NEED TO MAKE SURE THERE IS THE DEPENDENCY OF THE STABILITY OF GRID, ARIZONA ONE OF THE TOP TEN STABLE GRIDS IN THE COUNTRY.

TED: MR. HILL, PLEASE.

>> I WANT TO RESPOND TO THIS, YOU ARE PUTTING A LOT OF WORDS IN OUR MOUTHS.

YOU KEEP SAYING WE ARE QUOTE, UNQUOTE GREEN, KEEP SAYING WE ARE LIKE CALIFORNIA.

ARIZONANS ARE TRYING TO SCARE YOU, LIKE WE DO NOT HAVE YOUR BEST INTEREST IN MIND.

THE REASON WE SUPPORT RENEWABLE ENERGY IS OUR CLEAN FOR OUR COMMUNITIES, IT IS CHEAPER NOW THAN A LOT OF OTHER GENERATING CAPACITY AND SOMETHING WE HAVE HERE IN ARIZONA, WHEN WE USE FOSSIL FUELS WE SEND THAT MONEY OUT OF ARIZONA, TO TEXAS, TO OTHER PLACES, IT DOESN'T STAY HERE.

WHEN WE GENERATE ENERGY HERE, ARIZONA DOES NOT HAVE FOSSIL FUEL RESOURCES, WHEN WE GENERATE THE RESOURCES HERE, THAT MONEY STAYS HERE, JOBS STAY HERE AND ECONOMY GROWS.

>> YOU CAN DEFINE RENEWABLES?

HE'S SAYING WE'RE PUTTING WORDS IN YOUR MOUTH.

TED: DEFINE RENEWABLE.

>> A WIDE RANGE OF TECHNOLOGIES, SOLAR, IT CAN INCLUDE WIND, IT CAN INCLUDE HYDRO THERMAL, IT CAN INCLUDE HYDRO, IF HYDRO IS DONE RIGHT.

IT CAN INCLUDE TIDAL, WHICH WON'T HAPPEN UNTIL CALIFORNIA SLIDES OFF INTO THE OCEAN.

OUR AIR QUALITY IS FIFTH LOWEST IN THE NATION.

THAT'S BECAUSE OF THE TYPE OF ENERGY GENERATION WE USE.

TED: DOES IT INCLUDE NUCLEAR?

>> RENEWABLE?

YES.

TED: IT DOES?

>> I WOULD SAY IT'S NOT RENEWABLE BUT CLEAN IN THE SENSE IT DOES NOT PRODUCE A LOT OF THE POLLUTANTS THAT POLLUTE OUR AIR.

TED: CLEAN, NUCLEAR IS AN OPTION?

>> YES, NUCLEAR IS AN OPTION, IT'S VERY COSTLY, THE TECHNOLOGY IS EVOLVING, IT'S CHANGING, GETTING MORE AFFORDABLE AS IT EVOLVES, AS A COMMISSIONER I'D BE EXCITED TO SEE AND HAVE THE UTILITIES LOOK INTO MICRONUCLEAR, BUT, YES, I WANTED TO GO BACK TO WHAT'S BEING STATED.

WE ARE -- AND I WORK IN THE SPACE, THE FIFTH, MARICOPA COUNTY WITH THE MOST CONTAMINATION IN THE COUNTRY.

THIS IS UNACCEPTABLE.

WE NEED TO ENSURE THAT THE COMMISSION IS ESTABLISHED SO WE CAN ENSURE THAT WE HAVE LOW AFFORDABLE RATES, AND IF WE HAVE THE OPPORTUNITY, WHY DO WE HAVE TO BE FIFTH IN NATION WITH SOLAR WHY, CAN'T WE BE FIRST?

WE HAVE ABUNDANCE OF SUNSHINE.

WHY ARE WE FIFTH PLACE, THAT IS RIDICULOUS.

>> ENCOURAGE EVERYONE TO WATCH THE CLEAN ELECTIONS DEBATE TO KNOW WHERE OUR OPPONENTS STAND.

HE'S SAYING WITH SOLAR, WHEN YOU ADD THE STORAGE, THE BATTERIES, THE SOLAR PANELS ARE CHEAP, WHEN YOU'RE IN THE BATTERIES, IT'S THE SAME PRICE AS COAL.

WE HAVE LOTS OF RENEWABLES IN ARIZONA, COMMISSION APPROVED 8,000 MEGAWATTS OF SOLAR IN ARIZONA BUT DOESN'T GET THE JOB DONE DURING PEAK DEMAND.

WE GET TOO MUCH ENERGY WHEN THE DEMAND IS LOW AND GET ENERGY FROM CALIFORNIA, THEY'RE PAYING ARIZONA TO TAKE IT OFF OF THEIR HANDS, IT IS PASSED THROUGH THE TAXPAYER IN REALTIME.

IF WE ADD TO THE STORAGE IT'S THREE TO FOUR STORAGE, IT CAN BE RAMPED UP AND DOWN QUICKLY TO MEET THE DEMAND.

THAT'S WHY YOU'RE SEEING THE PEAKER PLANS DEVELOPED BECAUSE WE'RE GOING TO HAVE THE BROWNOUTS AND BLACKOUTS.

>> HOW ARE THEY CHANGING THEIR POSITION FROM PREVIOUS DEBATES?

>> PREVIOUS DEBATES, WE NEED TO GO TO 100% PORTFOLIO.

THEY TALKED ABOUT SOLAR AND WIND IN THE PREVIOUS DEBATE.

THIS IS THE FIRST TIME I'VE HEARD ANYBODY TALK ABOUT PRO NUCLEAR.

>> THIS IS THE FIRST TIME WE'RE HEARING THIS.

WE WANT TO RETURN THE CORPORATION COMMISSION TO CORE RELIABILITY AND STABILITY.

GETTING RID OF GOVERNMENT REGULATIONS THAT ARE IMPEDING THE MARKET FROM ACTUALLY FUNCTIONING ON THE GENERATION SIDE.

WE WANT TO SEE ABOVE THE APPROACH.

THEY KEEP TALKING ABOUT THE DIVERSITY OF OUR GRID.

50% OF GRID GENERATION COMES FROM NATURAL GAS.

20%+ COMES FROM COAL.

THAT DOESN'T SOUND LIKE A DIVERSE GRID TO ME.

IT IS CHEAPER TO BUILD CHEEN ENERGY AND BUILD INDEPENDENCE FOR OUR STATEMENT WE'RE SPENDING $5 BILLION A YEAR TO BUY WHOLESALE FOSSIL FUELS TO POWER THE GRID.

REASON IT WORKS OUT IS BECAUSE THESE REGULATIONS ALLOW THE UTILITIES TO PASS THE COSTS TO YOU THE CONSUMER.

>> HOW IS IT CHEAPER TO MANDATE THEY DO SOLAR AND WIND, HOW IS IT CHEAPER THAN DOING AN RFP?

>> WE'RE NOT TALKING ABOUT MANDATES.

TED: THEY'RE NOT MENTIONING MANDATES.

>> WILL SHOW US WHAT THE CHEAPEST OPTION IS.

IF WE FORCE GENERATION, THAT'S A WHOLE DIFFERENT BALL GAME.

THE RFP PROCESS ENSURES WE'RE GETTING THE BEST DEAL.

THAT'S WITH ALL OF THE ABOVE.

THE SOLAR AND WIND, JUST FOR SUBSIDIES, NOT THE TOTAL COST, THE SUBSIDIES HAVE COST $4 TRILLION.

OUR DEPENDENCE ON FOSSIL FUELS CONTINUE TO GROW.

WE NEED BOTH.

TED: MS. AGUILAR?

>> WHAT'S HAPPENING IS YOU'RE SEEING THEIR INSECURITIES.

WE KNOW WHAT WE'RE DOING WHAT WE'RE TRYING TO ENSURE WHEN WE GET ELECTED WE'RE DOING THE BEST FOR RATEPAYERS.

NUCLEAR IS VERY EXPENSIVE.

I WISH WE WEREN'T IN A POSITION WHERE IT WEREN'T.

SOLAR IS GOING TO OUTPRICE, IT'S WAY CHEAPER THAN MICRONUCLEAR AND THAT'S EMERGING TECHNOLOGY.

WE NEED TO -- ARIZONA YOU NEED TO HEAR THEY'RE TRYING TO PUT WORDS IN OUR MOUTH, THEY'RE TALKING ABOUT MANDATES AND US TALKING ABOUT 100% SOLAR.

WE'VE NEVER SAID THAT.

YOU CAN GO BACK AND WATCH THE OTHER DEBATE.

WE'RE HERE BECAUSE WE WANT WHAT'S BEST FOR THE RATEPAYER.

I AND A LOT OF FAMILIES ARE SUFFERING BECAUSE OF THE RISING COSTS AND AT THE END OF THE DAY, THIS IS THE BIGGEST RESPONSIBILITY WE HAVE IS TO ENSURE WE'RE GETTING THE BEST RATES AND ENSURING A SAFE, RELIABLE GRID.

TED: MS. MARQUEZ PETERSON.

>> VOTERS, LOOK CLOSELY TO THE CONTRAST.

I KNOW IT'S GETTING MUDDLED IN THE DEBATE.

SOLAR DOESN'T WORK AT NIGHT, WIND DOESN'T ALWAYS BLOW.

WE NEED OTHER SOURCES OF ENERGY TO PROVIDE THE RELIABLE ENERGY.

WE'VE SEEN STATES NOT TRANSITIONING.

ARIZONA IS IN A CLEAN TRANSITION NOW.

OTHER STATES ACQUIRED MUCH FASTER, MORE LIKE FLIPPING A SWITCH AND YOU'VE SEEN INCREDIBLE INCREASE COSTS IN ELECTRICITY RATES FOR RATE PAYERS AND OTHERS.

THAT'S THE MAJOR CONTRAST.

THEY'RING ABOUT IT TO MOVE MUCH FASTER AND NOT SEE A TRANSITION LIKE WE HAVE.

>> MS. MARQUEZ PETERSON, YOU HAVE SET UP A PAPER TIGER.

YOU ACT LIKE THOUSANDS AND THOUSANDS OF ENGINEERS WHO WORKED ON THE TECHNOLOGIES DON'T REALIZE THE SUN GOES DOWN AT NIGHT.

OF COURSE WE KNOW THE SUN GOES DOWN AT NIGHT.

SO MUCH INVESTMENT HAS BEEN MADE IN THE LAST DECADES TO BUILD UP STORAGE.

TO MS. WALDEN'S POINT, THE COST OF STORAGE, AND DIFFERENT STORAGES NOT JUST BATTERY STORAGE, PUMP STORAGES THERMAL STORAGE, THOSE TECHNOLOGIES ARE GETTING MUCH BETTER AND MUCH CHEAPER AT A TREMENDOUS RATE, SO WE WANT TO TAKE ADVANTAGE OF THE TECHNOLOGICAL IMPROVEMENTS.

>> SO DO WE.

TED: MR. LOPEZ, PLEASE.

>> AGAIN, IT'S GETTING A LITTLE HEATED HERE.

I HAVE NO DOUBT THAT OUR COMPETITION WANTS TO DO THE BEST FOR PEOPLE.

WE ALL DO.

I DON'T DOUBT THEY WANT THE BEST FOR ARIZONA.

AS LEA SAID, WE NEED TO LOOK AT THE PRAGMATISM THAT GOES ON WITH THE TRANSITION.

WE ARE NOT AGAINST GOING DOWN THE SOLAR PATH BUT WE ARE FOR MAKING SURE WE RETAIN THE RELIABILITY AND AFFORDABILITY AS THE BALANCE ON OUR GRID.

WE'RE NOT QUESTIONING THE SUN GOES DOWN, WHEN YOU TALK ABOUT THE BATTERY TECHNOLOGIES, WE WITNESSED IT TWICE WITH THE BATTERY TECHNOLOGIES HOW THEY CATCH FIRE, THOUGH THEY'VE GONE THROUGH NEXT GENERATION IMPROVEMENT AND CAUGHT ON FIRE AND BURNED FOR 11 DAYS, IN CHANDLER, WE HAD A FIRE ON THE NEWEST AND LATEST TECHNOLOGY AND YOU WANT TO PUT THAT IN PEOPLE'S HOMES, IN THE DESERT, WHICH CAN CAUSE MAJOR ISSUES WHEN THEY CATCH ON FIRE.

I'M NOT AGAINST THE BATTERY ADVANCEMENT TECHNOLOGY.

BEFORE WE PUT INVESTMENTS INTO THE WHOLESALE TECHNOLOGIES, IT'S PROVEN SAFE SO THEY CAN GO INTO THE NEIGHBORHOODS AND WE'RE NOT GOING TO HAVE 11-DAY FIRES IN NEIGHBORHOODS.

>> AGAIN, YOU'RE PUTTING WORDS IN OUR MOUTH WE WANT TO PUT BATTERIES IN NEIGHBORHOODS.

>> WHERE DO THEY GO?

>> IN POWER PLANTS.

IN NEVADA -- I'M SORRY, I'M SPEAKING.

IN NEVADA, YOU TALK ABOUT THE TRANSITION IT'S TOO FAT.

I DON'T THINK PEOPLE ARE COMPLAINING RATES ARE GOING DOWN BECAUSE THEY'VE GONE FROM 5% SOLAR TO 50% SOLAR BECAUSE THEY OPENED UP THE GENERATION TO ALLOW THE BEST OF ABOVE APPROACH.

>> WE'VE HEARD FROM APS THEY'RE GOING TO SEE A 40% INCREASE IN ENERGY DEMAND OVER THE NEXT SEVEN YEARS.

BATTERY TECHNOLOGY IS NOT THERE YET.

IF IT'S BUILT TODAY TO WORK WITH RESIDENTS AND COMMERCIAL DEVELOPMENTS TOMORROW AND THE NEXT DAY, WE NEED TO HAVE THE ALL OF THE ABOVE APPROACH, CONTINUING USE OF COAL PLANTS, NUCLEAR PLANTS AND SOLAR AND WIND.

TED: MS. AGUILAR?

>> IT'S NOT OKAY TO PUT ALL THE CONTAMINANTS THAT IMPACTS CHILDREN, IMPACTS PEOPLE WHO HAVE ASTHMA.

THAT'S OKAY?

>> NATURAL GAS YOU'RE TALKING ABOUT.

>> NATURAL GAS POWER PLANTS.

>> WHY DON'T WE ASK THE COMMUNITY THAT SAID THEY DON'T WANT THE PLANT AND YOU DECIDED TO OVERRULE YOUR CITING COMMITTEE TO EXPAND THE PLANT AGAINST THE WILL OF THE COMMUNITY.

>> WE NEED ADDITIONAL GROWTH, WHETHER THAT'S UTILITY SCALE SOLAR OR NATURAL GAS PLANTS AND FOLKS DON'T WANT THAT IN THEIR BACKYARD.

WE'RE FIGURING OUT WHERE THEY WANT IT TO GO.

WE'VE HAD THE SAME PUSHBACK IN THE COUNTY.

>> MOHAVE COUNTY HAD SOLAR PLANT LITTERING THE SOLAR GRADE RECOVERY, ALL REUSABLE LAND FOR HOUSES AND/OR INDUSTRY, SO THEY PUT A MORATORIUM ON IT.

THAT'S IS TO THEM TO CONTROL AND LA PAZ COUNTY NEXT DOOR.

WE NEED TO OPEN UP THE DOORS TO SAY WHERE DO YOU WANT TO GO?

WHAT DO YOU WANT TO HAVE?

AND THE ALL ABOVE APPROACH.

SOME COMMUNITIES THEY WANT IT AND SOME MAY WANT.

TED: SHIFTING GEARS, MS. WALDEN, WATER.

WHAT CAN THE CORPORATION COMMISSION DO TO ENSURE ARIZONA HAS ENOUGH WATER?

>> SO WE DON'T REGULATE THE WATER RIGHTS BUT DETERMINE THE SERVICE TERRITORIES.

THE THING THAT THE COMMISSION IS GOING TO FACE ISN'T WATER RIGHTS, IT'S CONSOLIDATION OF THE SMALL WATER COMPANIES.

THERE'S 350 DUMPS -- COMPANIES REGULATED BY THE COMMISSION.

THEY NEVER HAD INVESTORS, DIDN'T INVEST IN INFRASTRUCTURE AND THEY'RE IN A BAD SITUATION AND A LOT OF THE WATER COMPANIES SERVICE 20 HOUSE HOLDS.

YOU CAN'T PUT A MASSIVE RATE INCREASE ON THAT.

YOU WILL SEE THEM BUY THE WATER COMPANIES AND WE HAVE TO BE SMART, CAREFUL WHERE WE MAKE SURE EVERYBODY IS TREATED FAIRLY.

TED: MR. POLACHECK, WHAT CAN THE CORPORATION COMMISSION DO REGARDING WATER IN ARIZONA?

>> THE FIRST THING IS WHEN YOU SEE THE SMALL WATER COMPANIES, THE CORPORATION COMMISSION SHOULD MAKE SURE WATER HEDGE FUNDS AREN'T EJECTING AS MUCH PROFIT AS THEY CAN FROM THE SMALL RURAL COMMUNITY.

SEEN RATE INCREASES APPROVED BY COMMISSIONER MARQUEZ THAT ARE 100, 200, 300% INCREASES.

WE'VE BEEN TO EASTERN ARIZONA, PEOPLE PAYING MORE FOR WATER BILLS THAN MORTGAGE.

THERE IS SOMETHING THE COMMISSION CAN DO.

EVERY TIME YOU PUT A NEW NATURAL GAS POWER PLANT ONTO THE GRID, THAT'S ON THE GRID FOR 60 YEARS UNDER THE CURRENT CORPORATION COMMISSION'S REGULATIONS AND EVERY 100 MEGAWATTS OF NATURAL GAS IS 140 ACRE FEET OF WATER THAT WE USE THAT WE'RE NEVER GETTING BACK.

THE CORPORATION COMMISSION CAN MAKE SURE THAT THE POWER GRID IS NOT DEMAND ON OUR WATER.

TED: MS. MARQUEZ PETERSON.

>> GET TO HOW THE WATER INDUSTRY IS STRUCTURED.

350 WATER UTILITIES.

I'M VICE CHAIR OF THE NATIONAL WATER CHAIR COMMITTEE OF COMMISSIONERS AND WE LOOKED AT SMALL WATER UTILITIES.

WE HAD MORE THAN 20 SMALL -- I'M SORRY, 80 SMALL WATER UTILITIES THAT HADN'T HAD A RATE CASE IN 20 YEARS.

THAT'S NOT GOOD.

THEY NEED TO MAKE SURE THEY HAVE ADJUSTMENTS, REASONABLE RATES AND PROVIDING GREAT SERVICE TO THE RATEPAYERS THEY ARE SERVING.

WE ARE SEEING A NUMBER OF THEM BEING ACQUIRED AND I THINK THAT'S GOOD IN MANY CASES BECAUSE THEY ARE RUN SOMETIMES BY VOLUNTEERS OR HOA BOARDS OR GRANDCHILDREN BECAUSE GRANDPA STARTED THE SMALL WATER UTILITY.

WE HAVE A LOT OF WORK TO DO WITH WATER.

TED: MR. HILL, PLEASE.

>> SMALL WATER COMPANIES ARE A HUGE PROBLEM FOR ARIZONA.

ANY VIEWERS THAT GET WATER FROM THEM KNOW THEY HAVEN'T BEEN INVESTING IN INFRASTRUCTURE.

THEY HAVEN'T BEEN INVESTING IN WATER QUALITY IMPROVEMENTS.

SO THAT'S THIS ONGOING ISSUE THAT THE COMMISSION HAS FACED AND WE'VE HAD REPUBLICAN CONTROL THE COMMISSION FOR OVER TWO DECADES NOW AND AS MS. MARQUEZ PETERSON SAID, THIS ISSUE HAS BEEN BUBBLING FOR TWO DECADES.

WE NEED CHANGE, A DIFFERENT APPROACH TO THE SMALL WATER COMPANIES TO GET THEM BACK ON TRACK.

TED: BUBBLING IS A GOOD WAY TO PUT IT HERE.

AND I'VE BEEN DOING THESE DEBATES FOR A WHILE.

YOU DON'T HEAR ABOUT SMALL WATER COMPANIES.

YOU DO NOW.

WHAT'S GOING ON OUT THERE?

>> THEY'RE FEELING THE CRUNCH AND AGING INFRASTRUCTURE.

WE'VE HAD THE BIG BOOM, RIGHT?

ALL THE BIG CITIES HAVE HAD THAT AND THAT DOES NOT EXCLUDE RURAL COMMUNITY.

WE TALK ABOUT WATER, WE NEED TO STAY IN THE WHEEL HOUSE.

WE DON'T DO WATER RIGHTS.

WE TALK ABOUT QUALITY AS WAS MENTIONED BEFORE.

WE DON'T DO THAT.

ADEQ NEEDS TO TALK ABOUT THE BEING ON ADEQ.

WE DO AFFORDABLE RATES AND OVERSEE THE PRIVATE MONOPOLY UTILITIES TO ENSURE THEY'RE DOING WHAT IS JUST AND REASONABLE.

WHEN IT COMES TO WATER.

WE NEED TO BE RESPONSIBLE FOR WATER.

WE USE THE SAME AMOUNT OF WATER BROUGHT INTO THE STATE AS THE 1960s WITH 3 MILLION LESS PEOPLE BUT CONTINUE TO PRODUCE AG AT ALMOST TWO TIMES THE AMOUNT BECAUSE OF ADVANCEMENTS IN TECHNOLOGY AND USE A LOT OF LESS WATER, ALL THE CITIES AND COUNTIES ARE RECYCLING THE WATER.

WE'RE A LOT MORE CONSERVATIVE WITH THE WATER AND THE INDUSTRY THAT'S COME IN, THEY RECYCLE THE WATER ALSO.

THERE'S A LOT OF SOLUTIONS THEY CAN TAKE IN PLACE.

IF WE CAN GET CALIFORNIANS TO DO 10% OF WHAT WE DO IN ARIZONA, AT LEAST 10% OF IT, WE WOULDN'T HAVE A WATER PROBLEM ON THE COLORADO RIVER.

TED: MS. AGUILAR.

>> I'M GLAD YOU KNOW WHAT ADEQ DOES NOW, WHEN WE STARTED YOU TALKED ABOUT CALIFORNIA TAKING OUR WATER AND FIGHTING FOR WATER RIGHTS, THAT'S WHERE I SERVE, I WAS GOING TO ASK YOU TO RUN FOR THAT BOARD SINCE THAT IS SOMETHING YOU WERE PASSIONATE ABOUT.

WHAT THE CURRENT CORPORATION CAN DO, I'VE HEARD FROM A LOT OF SMALL BUSINESS WATER OWNERS AND YOU, COMMISSIONER, LEA MARQUEZ PETERSON, SMALL BUSINESS OWNERS SHOULD CARE ABOUT THE PRIVATE WATER COMPANIES ACQUIRED BY LARGER COMPANIES AND THE REASON THAT THAT'S HAPPENING IS BECAUSE CURRENTLY IN THE COMMISSION, THESE SMALL PRIVATE WATER COMPANIES CAN'T AFFORD TO GO IN FRONT OF THE COMMISSION FOR A RATE CASE BECAUSE IT COSTS APPROXIMATELY 150 TO $250,000 TO HIRE ENGINEERS, LAWYERS, EXPERTS JUST TO BRING A CASE IN FRONT OF THE COMMISSION.

WE NEED TO MAKE SURE WE MAKE IT EQUITABLE SO THE SMALL BUSINESS OWNERS -- THAT CREATES A SHOCK FOR ALL OF THE PEOPLE LIVING IN THE RURAL COMMUNITIES THAT NOW CAN'T AFFORD TO PAY FOR WATER BECAUSE THE CURRENT COMMISSION IS SET UP IN A WAY WHERE THERE IS NO EQUITY.

TED: MS. MARQUEZ PETERSON?

>> MUCH MORE COMPLEX THAN THAT.

THE SMALL WATER UTILITIES THAT HAVE NOT MADE THE PROPER CAPITAL INVESTMENT OVER TIME, WE NEED TO TACKLE THAT.

SOME OF THEM ARE FACING PFAs, THERE ARE A LOT OF DIFFERENT ISSUES RELATED TO WATER THAT THE UTILITIES NEED TO SPEND MONEY ON.

A LOT OF THEM ARE NOT ABLE TO GO TO THAT DIRECTION SO THE FOLKS ARE CONTINUED TO BE SERVED WITH WATER.

WHETHER THOSE ARE LARGE OR MEDIUM UTILITIES WE NEED TO HAVE MERGERS AND ACQUISITIONS OCCURRING WHERE IT MAKES SENSE FOR THE COMMUNITIES.

THE MOST IMPORTANT QUESTION IS THE CUSTOMER BEING SERVED.

TED: DO THEY NEED THIS FOR COMMISSIONS TO BE AFLOAT?

>> YES, IT'S NEEDED.

THE CORPORATION COMMISSION ENSURES THE WATER UTILITY COMPANIES PROVIDE CLEAN DRINKING, RELIABLE WATER BECAUSE THE LARGER CORPORATIONS, WHEN THEY ACQUIRE THE SMALLER ONCE THEY ARE DELIVERING WATER WITH CONTAMINANTS.

PFAs, ARSENIC, LEAD, I WORK WITH EDEQ AND EPA AND LOOK AT THE REPORTS.

EVEN WHEN THEY'RE ACQUIRED IT'S A SHOCK FOR THE CUSTOMER AND THEY'RE STILL NOT DELIVERING QUALITY WATER SO THE COMMISSION CAN REGULATE.

TED: LAST QUESTION BECAUSE WE'RE RUNNING OUT OF TIME, THE RECENT APS RATE HIKE.

AMONG THE REASONS, MR. POLACHECK, WAS TO REASSURE LENDERS THAT PINNACLE WEST HAS THE CREDIT RATING AND PROFITABILITY NEEDED TO CONTINUE IN BUSINESS AND CONTINUE GOING STRONG AND CONTINUE TO DO WHAT IT DOES.

IS THE VIABILITY OF PINNACLE WEST OR A PARENT COMPANY, IS THAT REASON ENOUGH FOR A RATE INCREASE?

>> WE WANT OUR UTILITIES TO BE A STRONG PARTNER FOR A FUTURE IN ARIZONA, BUT THE UTILITIES NEED TO SHARE THE VISION OF ENERGY INDEPENDENCE, MAKING SURE WE STABILIZE RATES AND POTENTIALLY BRING DOWN RATES.

NO REASON EXCEPT FOR LACK OF LEADERSHIP ON THE CORPORATION COMMISSION THAT ARIZONA IS NOT NUMBER ONE IN THE NATION FOR MAKING THAT TRANSITION TO ENERGY INDEPENDENCE AND CLEAN ENERGY.

OUR OPPONENTS KEEP TALKING ABOUT THE NEED FOR DIVERSIFICATION.

THREE QUARTERS OF OUR GRADE IS OUT-OF-STATE FOSSIL FUELS.

I DON'T KNOW ABOUT YOU, BUT I HAVEN'T SEEN A SINGLE OIL WELL OR FRACKING WELL IN ARIZONA BUT A LOT OF SUNSHINE.

THERE'S A REASON OUR STATE HAS THE POTENTIAL, NOT ONLY TO STABILIZE OUR RATES BUT FOLLOW THE EXAMPLE OF OUR NEIGHBORS UP NORTH IN NEVADA AND BRING RATES DOWN, AND IT'S PURELY BECAUSE OF THE LACK OF THE LEADERSHIP ON THE CORPORATION COMMISSION IT'S HAPPENED.

TED: MS. WALDEN, RETURN ON INVESTMENT, IS THAT ENOUGH OR A MAIN REASON FOR A RATE HIKE?

>> NO, YOU COME IN FOR A RATE HIKE BECAUSE YOU'RE GETTING COST OF SERVICE REIMBURSED.

I'M OPEN TO CHANGING THE WAY WE DO OUR RATES.

WE'VE BEEN DOING IT THE SAME WAY FOR 100 YEARS.

UTILITY COVERS COST OF SERVICE WITH NO MARKUP, NO PROFIT.

THEY HAVE PROJECTS AND INFRASTRUCTURE, THEY GET LOANS AND INVESTORS AND THEN YEARS DOWN THE ROAD AFTER THE PRICES CONTINUE TO GO UP, THEY GO TO THE COMMISSION FOR A RATE INCREASE.

WE DIDN'T CHANGE THE WAY THAT'S DONE.

IT WILL BE HARD, BUT DO A CURRENT YEAR RATE CASE WHERE WE'RE LOOKING AT INCREMENTAL ADJUSTMENTS RATHER THAN HEY, IT'S BEEN TEN YEARS.

IMAGINE IF WALMART TOOK LOANS AND INVESTORS TO FUND COST OF BUSINESS AND TEN YEARS LATER SAID WE HAVE TO PAY THE LOANS OFF.

IT'S GOING TO BE EXPENSIVE.

THE TALK OF SOLAR, THE ONLY TALK OF RENEWABLES, YOU CAN GO LOOK IT UP AND THERE'S ARTICLES THAT THE ONLY TIME RENEWABLES MET THE YEAR WAS 2020 WHEN WE SHUT EVERYTHING DOWN.

>> WE'VE HEARD THE RATE CASES ARE GOING UP EVERY FEW YEARS.

I ASKED PEOPLE IN MARICOPA AND COMMISSIONER PETERSON -- >> I'D LIKE TO RESPOND.

>> I THINK IT'S MY TURN TO TALK, RIGHT?

I THINK -- APS -- [ TALKING OVER EACH OTHER ] .

TED: YOU GOT TO LET HER RESPOND, PLEASE.

>> YOUR QUESTION WAS ABOUT THE RETURN OF INVESTMENT AND THE FINANCIAL MARKET RESPONSE.

THE FINANCIAL MARKET IS NOT SOMETHING I ENGAGE WITH.

WHAT WE NEED TO DO IS LOOKING AT THE INVESTMENT THAT APS MADE IN THIS CASE FROM THE LAST TIME THEY CAME IN FOR A RATE CASE, THEY GET COST RECOVERY FOR THAT, I'M OUT TALKING AROUND THE STATE, WITH A SCALPEL TO IT.

WE CUT MORE THAN $200 MILLION OUT OF RECENT APS CASE.

I THINK WE NEED TO HAVE REGULATORY STABILITY LIKE ANY COMPANY.

IT SHOULDN'T BE BASED ON FINANCIAL MARKET.

TED: REAL QUICKLY, THE IMPRESSION IS THAT RATE HOLDERS ARE TAKING A SECOND SPOT TO SHAREHOLDERS OF PINNACLE WEST.

>> I WOULD ARGUE THAT'S NOT THE CASE.

YOU NEED TO PROVIDE COST RECOVERY TO THE COMPANY BECAUSE THEY'RE SPENDING MONEY HISTORICALLY AND WE GIVE COST RECOVERY WHEN THEY COME IN FOR THE RATE CASE.

THEY NEED TO BE WHOLE FOR THE MONEY SPENT FOR THE TIME THAT PASSED.

TED: MR. HILL, THERE IS A BALANCE THAT NEEDS TO BE CONSIDERED?

>> YES, I AGREE THE UTILITIES NEED TO BE FINANCIALLY HEALTHY OTHERWISE WE'LL HAVE THE POWER UTILITIES GOING THE WAY OF THE SMALL WATER UTILITIES.

WE NEED THE POWER UTILITIES TO BE FINANCIALLY HEALTHY, BUT THAT DOES NOT WRITE THEM A BLANK CHECK FOR WHATEVER INCREASE THEY ASK FOR.

WHEN THE APS INCREASE WENT BEFORE THE COMMISSION, ALL FOUR OF THE REPUBLICAN MAJORITY COMMISSIONS VOTED YES, ANNA TOVAR, THE LONE DEMOCRAT WAS THE DISSENT.

WHY WOULD APS NOT ASK FOR EVERYTHING AND MORE.

>> CUTTING 200 MILLION OUT OF THE RATE CASE.

>> SHOULD HAVE BEEN MORE.

THEY ASKED FOR 10% ON THE ORDER OF $1.6 BILLION OF RETURNS AND THE CORPORATION COMMISSION INTERVENED AND SAID I THINK IT WAS CUTTING 240 MILLION OUT OF CASE AND DROPPED IT TO 8.

YES RATES GO UP.

I HELP RUN THE UTILITY FOR THE FOURTH LARGEST WATER DISTRICT IN THE STATE.

OUR PRICES WENT UP.

WE ARE THE LOWEST COST OF SERVICE IN ANY CITY IN MARICOPA COUNTY, WE HAD TO RAISE RATES BETWEEN 6 TO 9% EVERY OTHER YEAR BECAUSE COST IS UP FOR EVERYTHING.

STEEL, PEOPLE, INFRASTRUCTURE, IT ALL GOES UP OVER TIME WITH THE INFLATION, SO THOSE RATES GO UP AND DOESN'T MEAN WE'RE TRYING TO FLEECE THE CITIZENS OR THE RATEPAYERS BUT THERE'S A DUE JUST UTILITIES REIMBURSEMENT THEY ARE ALLOWED.

>> WE WORK WITH THE COMMISSION WORKS WITH THEM, THEY'RE INCREDIBLY IMPORTANT BY THE TECHNOLOGY INFRASTRUCTURE UP-FRONT.

IT SHOULD BENEFIT BUT SHOULDN'T BE AT THE COST OF RATEPAYERS AND THERE'S A BALANCE THAT NEEDS TO BE HELD AND WORKING TOGETHER TO MAKE SURE WE ACHIEVE THAT BALANCE IS CRITICAL.

TED: WE HAVE ABOUT 30 SECONDS LEFT AND BECAUSE YOU ARE THE ONLY PERSON ON THE STAGE THAT VOTED FOR THE RATE HIKE INCREASE, WHAT DO YOU SAY TO RATEPAYERS WHO SAY MY ELECTRIC BILLS ARE THROUGH THE ROOF?

>> IF THEY ARE HAVING ISSUES I INVITE THEM TO INVESTIGATE THAT.

WE NEED ENERGY RELIABILITY.

IF WE WERE TO LOSE ENERGY IN THE SUMMER, THIS IS A LIFE-AND-DEATH ISSUE.

ROLLING BLACKOUTS CANNOT HAPPEN HERE.

PRIORITY HAS TO BE ENERGY RELIABILITY AT THE MOST AFFORDABLE RATES.

TED: CANDIDATES, THANK YOU VERY MUCH.

GOOD DEBATE.

GOOD CONVERSATION.

THANK YOU, CANDIDATES.

NOW TIME FOR CLOSING STATEMENTS AND GOING IN ALPHABETICAL ORDER, WE START WITH YLENIA AGUILAR.

>> THANK YOU VERY MUCH, ARIZONA FOR SPENDING TIME WITH US TONIGHT.

YOU GOT TO HEAR CONTRAST.

YOU GOT TO HEAR WHO IS GOING TO FIGHT FOR YOU.

WHO IS GOING TO ENSURE THAT WE KEEP OUR RATES LOW, AND THAT WE ARE NOT JUST LOOKING FOR THE SOLUTION FOR TODAY BUT FOR OUR LONG-TERM FUTURE.

I HOPE TO COUNT ON YOUR SUPPORT.

I'VE BEEN SERVING ARIZONA FOR THE PAST NINE YEARS AND HOPE TO CONTINUE TO SERVE YOU.

TED: THANK YOU VERY MUCH.

NOW THE CLOSING STATEMENT FROM JONATHON HILL.

>> THANK YOU, ARIZONANS, FOR TUNING IN TONIGHT.

I KNOW THIS DEBATE GOT SPICY AT TIMES, BUT I THINK THAT'S AN INDICATION HOW KOERNT THIS RACE IS.

SO MY FINAL WORD TO YOU IS, NO MATTER WHAT PARTY YOU BELONG TO, WHAT OPINIONS YOU HAVE ON THE ISSUES, PLEASE BECOME AN INFORMED VOTER ABOUT THIS RACE.

IT'S GOING TO IMPACT ALL OF YOU EVERY MONTH ON YOUR ELECTRICITY BILL, WATER BILL, NATURAL GAS BILL.

IT'S GOING TO AFFECT YOUR POCKETBOOK, THE ABILITY TO MAKE ENDS MEET.

RESEARCH ALL OF US, BECOME INFORMED VOTERS AND MAKE SURE YOU VOTE IN THIS ELECTION.

TED: THANK YOU VERY MUCH.

AND FOR OUR NEXT CLOSING STATEMENT, WE GO TO RENE LOPEZ.

>> THANK YOU, TED.

I THANK ALL THE OTHER CANDIDATES.

I HOPE I EARNED YOUR SUPPORT TODAY, RENE LOPEZ.

WE FIGHT FOR AN ALL-ABOVE APPROACH.

WE HAVE AN ELECTED RECORD.

WE'VE BEEN FIGHTING FOR TAXPAYERS AND RESIDENTS OF ARIZONA FOR THE LAST TWO TO EIGHT YEARS.

IF YOU DO YOUR RESEARCH AND LOOK US UP, WE'LL BE FIGHTING FOR THE RATE PAYER TO MAINTAIN THE STABILITY AND AFFORDABILITY YOU'VE BEEN ABLE TO EXPERIENCE FOR THE LAST TEN YEARS.

THERE IS NO PANACEA FOR ENERGY, WE NEED IT ALL TO MAINTAIN THE AFFORDABILITY AND RELIABILITY FOR ARIZONA.

WE APPRECIATE THE RATES ARE GOING UP, WE NEED TO FIGHT FOR YOU TO BE PRAGMATIC WITH THE SOLUTIONS.

TED: THANK YOU VERY MUCH.

CLOSING STATEMENT FROM LEA MARQUEZ PETERSON.

>> MY NAME IS LEA MARQUEZ PETERSON, I'M THE PAST CHAIRWOMAN, WOULD BE HONORED TO EARN YOUR VOTE IN THE ELECTION.

I'M PROUD OF THE WORK WE'VE BEEN DOING AT THE ELECTION IN ELECTRICITY AND WATER AND GAS AND APPRECIATE THE TIME YOU LEARNED LEARNING ABOUT OUR WORK.

WE INCORPORATE EVERY BUSINESS IN THE STATE.

THAT'S AN IMPORTANT ROLE THAT WE PLAY WITHIN THE STATE AND IMPORTANT TO THE FUTURE ECONOMIC DEVELOPMENT OF ARIZONA.

AGAIN, THERE'S A CLEAR CONTRAST BETWEEN THE THREE REPUBLICANS ON THE STAGE AND THE THREE DEMOCRATS, IF YOU'D LIKE ARIZONA TO BE A LEADER IN LOW-COST ENERGY AND THE MOST RELIABLE ENERGY GRID IN THE NATION, PLEASE VOTE FOR YOUR REPUBLICANS HERE ON THE STAGE, AND I APPRECIATE YOUR SUPPORT.

THANK YOU.

TED: THANK YOU, AND JOSHUA POLACHECK HAS OUR NEXT CLOSING STATEMENT.

>> GOOD EVENING, AND THANK YOU ALL FOR THIS EVENING.

WE OBVIOUSLY HAVE A PRETTY STRONG CONTRAST BETWEEN MYSELF AND MY TWO RUNNING MATES, JONATHON HILL AND YLENIA AGUILAR AND OUR REPUBLICAN OPPONENTS.

IF YOU ARE HAPPY WITH YOUR BILL, HAPPY WITH ONE OF THE LARGEST RATE INCREASES IN ARIZONA HISTORY, GO AHEAD AND CONTINUE WITH THE LEADERSHIP PRESENTED HERE TONIGHT.

IF YOU WANT A CHANGE, A SET OF CITIZENS STANDING UP, WHO ARE NOT CAREER POLITICIANS WHO WANT TO RETURN THE CORPORATION COMMISSION TO CONSTITUTIONAL DUTY TO MAKE SURE YOU HAVE AFFORDABLE, RELIABILITY, SAFE UTILITIES, THE CONTRAST IS CLEAR.

I SAY THIS AS SOMEONE WHO SERVED MY COUNTRY FOR NEARLY 20 YEARS.

I SAY THIS BECAUSE I'M NOT DOING SOMETHING AFTERWARD OR RUN FOR CONGRESS PREVIOUSLY.

I'M DOING THIS TO HELP THE PEOPLE OF ARIZONA AND MAKE SURE WE HAVE THE FUTURE WE DESERVE.

WE KNOW WHAT WE'VE HAD FOR 25 YEARS.

THE PEOPLE OF ARIZONA DESERVE BETTER.

THANK YOU.

TED: THANK YOU, FOR OUR FINAL CLOSING STATEMENT.

WE TURN TO RACHEL WALDEN.

>> WE HAVEN'T TALKED ABOUT THE BIDEN-HARRIS ADMINISTRATION AND THE INCREASE ON ENERGY PRICES.

WE'RE UP AGAINST A LOT WITH THE FEDERAL GOVERNMENT AND EPA AND REGULATIONS INCREASING THE COST OF EVERYTHING.

WE WANT TO WORK HARD TO MAKE SURE WE'RE GETTING THE BEST DEAL WE CAN GET.

I HAVE THE RIGHT FINANCIAL EXPERIENCE FOR THAT.

LEA MARQUEZ PETERSON IS A FORMER CHAIRWOMAN AND RENE LOPEZ HAVE THE UTILITY EXPERIENCE THAT WE CAN BE A STRONG TEAM TO PUT ARIZONA FIRST.

THE COMMISSION DOES REGULATION FOR SECURITY REGULATION ENFORCEMENT.

THAT'S ON THE AGENDA EVERY MONTH THEY MEET FOR FINANCIAL FRAUD AND I AM THE ONLY CANDIDATE THAT IS FINANCIAL LICENSED AND ENTERED MONEY LAUNDERING AND TRAINING AND REGULATIONS THAT INVEST IN OUR PRODUCTS.

MY WEBSITE IS ELECT RACHEL WALDEN.COM.

TED: THANK YOU TO OUR CANDIDATES AND THANK YOU FOR WATCHING TONIGHT'S DEBATE.

OUR NEXT "ARIZONA HORIZON" DEBATE IS MONDAY OCTOBER 14 AS WE HEAR FROM CANDIDATES RUNNING FOR ARIZONA'S 4th CONGRESSIONAL DEBATE.

OCTOBER 14.

5:00 AND 10:00, YOU CAN WATCH ALL OF THESE LIVE OR STREAMED LIVE ON YouTube AND FACEBOOK.

THAT IS IT FOR NOW.

I'M TED SIMONS.

THANK YOU SO MUCH FOR JOINING US.

YOU HAVE A GREAT EVENING.