Open Meeting - January 14, 2026

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Arizona Corporation Commission 1h 17m 7 agenda items transcribed 3 days ago official recording ↗

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What opening remarks and ceremonial actions set the tone for the meeting?

Kevin Thompson 0:02

Good morning, everyone. Welcome to our January 14th run of open meeting. Hope everyone had a wonderful holiday break. But now it's time to get back to work. And I know we're going to build on our successes of 2025. I thought December was going to be my final open meeting. but I'm going to handle this one today as well. And at the end of the meeting, we're going to elect a new chair and vice chair. So it looks like I get an encore. I'm going to, I'll do the pledge this morning since it's my last moment as the chair. And then our Vice, Commissioner Marquez-Peterson is going to do our prayer. So if you would please stand.

Kevin Thompson 1:04

Let's do the pledge first. I pledge allegiance to the flag

Kevin Thompson 1:18

And

Marcus Peterson 1:21

please remain standing if you'd like, and bow your heads if you'd like. Dear Lord, thank you for being here with us today on our first meeting of 2026 for our Arizona Corporation Commission. Please be with us, Lord, and help us lead with integrity and make good decisions on behalf of all of Arizonans. Lord, be with our staff, our interveners, our utilities, our rate payers, and look after us, Lord, in this upcoming year. In your name,

Unknown 1:45

amen.

Kevin Thompson 1:52

Before we get moving, I'd like to do a couple of housekeeping items. And really, that is just acknowledging our corporations division and our IT team. administrative services, and everyone else who helped make the launch of our new business filing portal, Arizona Business Center. This has been a project many years in the making, and the new site just launched this week. It was a great success, so I just wanted to say thank you to everyone involved in that for helping make that transition. We have four items today that are subject to 40.252. Those agenda items are items 12, 14, 15, and 16. If any parties to those items would like to speak, please come forward. Seeing no one, I'll ask my fellow candidates.

Kevin Thompson 2:51

Chairman Thompson?

2:52

Yes.

Marshall Magruder 2:53

My name is Marshall Magruder. I'd like to discuss consent agenda item number one.

Kevin Thompson 2:59

Okay, go ahead then.

Marshall Magruder 3:01

Go ahead. Good morning, Chairman Thompson and commissioners. I'm Marshall Magruder, Santa Cruz County Energy Commissioner for over 20 years, appointed in 2000. I intervened or participated in an early rate or line signing case during that period. Five routes were considered in this project that connected the TEP Kanoa Ranch substation in Green Valley to the UNSC Kantor substation in Santa Cruz County with 138 KV line. Of the five routes, four and five were deleted early, and one and two are the proposed routes. My favorite, route three. That's why I'm talking. Route three runs parallel to Interstate 19 starting near the northern terminus Cantor Ranch substation, past another TEP Cantor substation, continuing to Cantor.

Marshall Magruder 4:02

Route 3 is the shortest, least expensive of these five routes. In 2004, I proposed and had approved a second transmission line from Kanoa to Cantor, about two-thirds the length of Route 3. This 46 KV line provided emergency backup power to the Santa Cruz service area. TEP's transmission director told me it is designed to carry 238 KV lines. Thus, Route 3 already has two-thirds of the transmission poles in place. Only one-third needs to be constructed. Over 100 of the 250 comets the company received, concerned Route 3's impact on the Santa Cruz River Mountain views by residents west of Interstate 19. In Green Valley, view is the most important homeowner value and why they oppose. Thus, however, I-19 road segment cuts through a very steep ridge over 100 to 150 feet high

Marshall Magruder 5:14

on top of which these homes have great mountain views. The monopoles, however, are only 75 to 85 feet tall, well below the horizon of these homes and would not be seen in front of the mountains. I-19 has four runways, east and west frontage, high north and south roads, each separated by medians of various widths. The median between I-19 South and West Frontage Road could be a safe monopole corridor. This eliminates the concerns on Route 3 and is considerably less expensive. I'd estimated save about $10 million with resulted lower rate base and increases for UNSC ratepayers.