News Release

Commission Sanctions Promoters of Phony Crypto Offering   

The Arizona Corporation Commission issued a default order against Robert Paul Dunlap of Florida and Meta 1 Coin Trust, stemming from their failure to respond to charges of defrauding over 300 investors with a fraudulent cryptocurrency offering.

Despite claims of backing by diverse assets like artwork and precious metals, Dunlap and Meta 1 Coin Trust never used investor funds to purchase such assets. Operating from a retail store mailbox in Sedona, Arizona, and having prior judgments for securities fraud, they have been ordered to pay $4.15 million in restitution and a $250,000 administrative penalty.

All legal documents relating to this agenda item can be found in the Corporation Commission's online docket at edocket.azcc.gov and entering docket number S-21149A-21-0372

Commission Joins Multiple States in $10 Million Settlement with Robinhood for Failing Investors

The Arizona Corporation Commission announced today that it has joined a multi-state settlement with Robinhood Financial LLC, which will pay up to $10.2 million in penalties for operational and technical failures that harmed main street investors.

Read more details about the Robinhood settlement in the full news release.

All legal documents relating to this agenda item can be found in the Corporation Commission's online docket, edocket.azcc.gov  and entering docket number S-21258A-23-0205

Cactus State Utility Advances Water Consolidation Efforts: Multiple Small Companies Join the Fold

Cactus State Utility Operating Company, LLC is making significant strides in acquiring small water companies in Arizona, with recent joint applications for the approval to transfer various water utility system assets. These transfers include the Certificates of Convenience and Necessity along with the establishment of deferred debits for Sunizona, West Village, Winchester, Santa Cruz, and Green Acres Water Companies. Their total prepaid expenses, recoverable over 30 years, amount to a noteworthy figure that reflects Cactus State's dedication to enhancing water services within the state.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at edocket.azcc.gov  and entering docket numbers W-03912A-22-0314 & WS-21155A-22-0314, W-03211A-22-0327 & WS-21155A-22-0327, W-04081A-23-0013 & WS-21155A-23-0013, W-02127A-22-0309 & WS-21155A-22-0309, and W-02271A-22-0319 & WS-21155A-22-0319

Sulphur Springs Valley Electric Net Metering Tariff Boosts Renewable Energy Users

Sulphur Springs Valley Electric Cooperative, Inc. (SSVEC) was granted a crucial update to the avoided cost rate used for reconciling their net metered customers. Net metering, a system that allows customers to be credited for generating their own energy from renewable sources, is at the forefront of SSVEC's efforts to encourage green energy. Currently set at $0.0412 per kWh, SSVEC proposes an increase to $0.0629 per kWh, a change that stands to make renewable energy more appealing to customers.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at edocket.azcc.gov and entering docket number E-01575A-23-0207

Commission Determines Circle City Water Company Did Not Discriminate: Orders Company to Extend Service to Mr. Broyles' Property

In a complex case involving Circle City Water Company (CCWCo) and landowner Mr. Robert Broyles, the Commissioners voted 5-0 to order that Circle City provide service to Mr. Broyles. Broyles filed a complaint against CCWCo, alleging that the company had violated A.R.S. §40-334(A) by requiring him to enter into a Main Extension Agreement (MXA) before extending water service to his property.

However, after thorough examination of testimony and evidence, it was determined that CCWCo did not discriminate. The Decision orders CCWCo to extend a service line to Broyles' Cardozo Dr. property, subject to tariffed fees, deeming it a temporary service that may convert to permanent upon agreement.

All documents related to this agenda item can be found in the Corporation Commission's online docket at edocket.azcc.gov and entering docket number W-03510A-21-0385

Emergency Rate Increase Approved for Voyager at White Mountain Lakes Water Company

The Arizona Corporation Commission has issued a Recommended Opinion and Order for Voyager at White Mountain Lakes Water Company, Inc., granting an Emergency Rate Surcharge. This action comes after the unexpected death of the company's owner, Lemuel Cook, and the urgent need for system repairs and the hiring of a certified operator. Mogollon Water Management has been contracted by Voyager at White Mountain Lakes Water Company, Inc. to operate and manage the water system.

The agreement, costing $426,180 over a two-year period, will enable Mogollon Water Management to take over the responsibilities of ensuring that the water treatment and distribution system is well-maintained and compliant with necessary regulations serving approximately 779 customers in Navajo County. The Commission approves a monthly emergency surcharge of $29.55 for specific meter sizes, to enable the company to recover $605,317 over a 24-month period. The Company is also directed to file a rate case within two years and reinstate its CC&N when ownership is resolved.

All documents related to this agenda item can be found in the Corporation Commission's online docket at edocket.azcc.gov and entering docket number W-01983A-23-0166

Tonto Basin Water to Recover Costs for Infrastructure Upgrades and Operating Expenses

Tonto Basin Water Co. filed a rate case on October 19, 2022 to continue providing water utility service in parts of Gila County and Pinal County while serving 1002 customers through five systems. Previous rates were approved by the Commission in July 15, 2015. A staff analysis arrived at  revenue requirement of $1,189,992 with a 6.86% ROR that the Commission approved. The proposed residential rate increase is $35.50, or 112.5%, and the rate case expense is recommended at $50,000, resulting in a $1.38 surcharge per customer for three years.

Commissioner Tovar introduced an amendment, adopted 3-2, to propose a low-income tariff for consideration. It is similar to affiliates like Coronado and Payson Water Companies. Modeling it on their low-income tariffs, the Commission authorized a discount rate of $10/month for households where the gross annual income does not exceed 150% of the Federal Poverty Guidelines.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at edocket.azcc.gov and entering docket number W-03515A-22-0266.

Commission Approved New Rates for Tucson Electric Power Company

The Arizona Corporation Commission approved a rate increase for Tucson Electric Power (TEP) that is less than what was originally requested by the utility and recommended order, involving 21 intervenors, and covering a timeframe between 2019-2022. Residential customers will see their bills rise by an average of $11 per month, while business customers will face various increases depending on their service type. The increase for home customers is carefully balanced to lessen the rate shock.

Commissioners introduced measures aimed at achieving fairness in distributing costs and to maintain the integrity of Arizona's energy market. Commissioner Márquez Peterson introduced an amendment that spread more of the revenue requirement to business customers, cutting the residential bill increases to just over 10% instead of 14.7%. The approved return on equity for TEP is 9.55%.

Additionally, adopted amendments removed a discount for electric vehicle owners, prohibited the spread of credit card processing fees among ratepayers who do not use them, and declined calls to use ratepayer funds to finance coal community transition. The Commission’s decisions represent a cautious approach to balancing residential and business interests, reflecting concern for rate shock while ensuring the financial stability of the utility.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at edocket.azcc.gov and entering docket number E-01933A-22-0107