As I reflect on the work this Commission has undertaken over the course of this year, and as I close out my term as Commissioner and as Chairman, I could not be prouder that I am leaving the Arizona Corporation Commission operating more efficiently, more productively, and better resourced.  And it will continue its good progress under the leadership of five excellent Commissioners who will be sworn in next week. 

I applaud the outstanding performance of our dedicated Staff.  They processed and prepared some 278 total cases that were heard and voted on by the five Commissioners, with 247 of those being unanimous decisions.  The cases break down approximately as follows:

• 22 securities fraud cases, with $15.6 million in restitution and over $2.1 million in penalties; 
• 14 line siting matters representing 65 miles of new transmission and interconnection lines;
• 20 rate cases impacting over 1.6 million customers, with two of the cases utilizing the Commission’s Settlement Policy which we re-affirmed last year; and 
• A major utility enforcement case; 

With our decisions, we approved to be added, or caused to be added, approximately:

• 1,700 MWs of solar energy
• 2,140 MWs of battery storage 
• 922 MWs of natural gas-fired energy

In addition to hearing cases, we also:

• Held workshops addressing utility preparations for the summer as well as winter seasons; 
• Reviewed and approved Integrated Resource Plans from our major electricity utilities on their expectations and plans to meet the next 15 years of growth in our dynamic Arizona economy; 
• Reviewed alternative ratemaking options to lessen the regulatory lag and remove the unintended consequences that increase the costs to customers that is inherent in the historical approach to setting utility rates the Commission has been using.  Ultimately the Commission voted to approve an additional ratemaking approach known as formula rate plans which, if a utility opts to utilize during their rate case application, will provide the Commission and the public a more thorough review of each year’s utility expenses for approval,  and more closely align the resulting rates with the cost of living and allow for better predictability; and
• Continued to modernize and streamline our administrative rules for Corporations, Line Siting, Securities, Safety, and Electric and Natural Gas that have not kept pace with change to ensure we deter fraud, recognize and incorporate the safe use of electronic resources, and eliminate mandates that shift costs to those who can least afford it.

As the sun sets on the term of this Commission, and stands poised to usher in the next, we are honored to have the continuity of such dedicated public servants ensure the work of the people of Arizona continues without interruption.  I wish you all a Blessed New Year!

Chairman Jim O’Connor