News Release

Phoenix, Ariz. —The Arizona Corporation Commissioners voted on 12 matters, including electric and water utilities, and securities items. Highlights from the meeting include:

Reduced Export Rate for APS, UNSE, and TEP Rooftop Solar Systems

The Commission approved revised Rate Rider Resource Comparison Proxy (RCP) export rates for APS, UNSE, and TEP, effective from October 1, 2023, through September 30, 2024 for UNSE and TEP and effective from September 1, 2023 to August 31, 2024 for Arizona Public Service. For APS, the RCP rate is lowered to $0.07619 per kWh; for UNSE, to $0.0755; and for TEP, to $0.0633. These changes will affect residential and small general service customers interconnecting rooftop solar systems and will remain in effect for a 10-year period for those interconnecting solar systems in the last quarter of 2023 and the first, second, and third quarter of 2024. The proposed changes align with a growing focus on balancing the interests of solar customers with overall ratepayer costs.

All documents related to these agenda items can be found at the Corporation Commission's online docket at edocket.azcc.gov, under docket numbers E-01345A-23-0110 for APS, E-04204A-23-0109 for UNSE, and E-01933A-23-0108 for TEP.

Dates and Responsibilities for Arizona's Next Integrated Resource Plans Unveiled

The Commission approved a proposed timeline for processing the next Integrated Resource Plans (IRPs) made up of several key steps. Load Serving Entities (LSEs) are responsible for filing the final IRPs by November 1, 2023. Following that, stakeholders have until January 31, 2024, to provide comments, and LSEs must respond to these comments by May 31, 2024. The Arizona Corporation Commission staff will then ready a proposed order by August 30, 2024. The final open meeting decision date is yet to be determined and will be made by the Commission.

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-99999A-22-0046

Lagoon Estates Water Company Revised Plans Slashes Loan Amount

Lagoon Estates Water Company, Inc. received approval for long-term financing of $1,375,900 from the Water Infrastructure Finance Authority of Arizona ("WIFA") for various water system improvement projects. However, Lagoon later filed a request to modify the scope of work due to increased costs of materials and labor, engineering issues, an effort to reduce customer costs and address the arsenic treatment requirement more expeditiously.

The revised project scope will reduce the original authorized loan amount by $741,525, potentially cutting costs for customers. The Commission supported Lagoon's request for scope modifications. The final repayable loan amount will depend on WIFA's evaluation of the modifications, and Lagoon is required to submit appropriate documentation to allow the recalculation of any needed revisions to the loan surcharge.

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-01825A-21-0324 & W-01825A-20-0270

Commission Approves UNS Electric’s 2022/23 Energy Efficiency Plan

The Arizona Corporation Commission enacted key amendments to the UNS Electric's 2022/23 Energy Efficiency Blueprint, reflecting a commitment to residential, commercial, industrial, and institutional sectors. The approved adjustments offer incentives for the installation of Carbon Monoxide (CO) and Carbon Dioxide (CO2) sensors, as well as economizers, promoting energy savings through smarter control of ventilation and indoor temperatures.

For public and charter K-12 schools, an advanced rooftop control pilot program is approved, targeting further energy efficiency (EE). Recognizing the best interest of ratepayers, decisions have been made to suspend certain incentives and rebates while focusing on programs that benefit low-income customers. 

These measures include the expansion of the existing Efficient Home Program to 200% of the federal poverty level for new space cooling and heating technologies where HVAC technologies can be deployed demonstrates a strategic and balanced approach.

The Plan enhances energy efficiency through the approval of new energy-saving technologies, supporting low-income households, promoting research and, and approving various measures related to HVAC, utility, infrastructure. It embodies a comprehensive, thoughtful evaluation serving the community's energy needs. 

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-04204A-21-0181

Bermuda Water Company Addresses 20.48% Water Loss in New Rate Plan

Bermuda Water Company (BWC) is making changes to serve its 9,250 customers in Bullhead City, Arizona. The company was losing more water than the 10% limit considered acceptable, so it's now working on a System Water Plan to remedy the issue.

The Commissioners set new rates reflecting an increase of $4.96 for the typical residential customer. This rate structure, along with plans to reduce water loss, aims to balance customer costs while ensuring compliance and efficiency within the community's water utility system.

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-01812A-22-0256

Swift Action to Secure Water Service and Financing in Lord, AZ.

Lord Arizona, a Class E water utility, serves around 466 customers near Show Low in Navajo County. During a busy holiday weekend this year, two of its three nearly failed, causing a crisis in water supply. The company had to bring its backup well online and is now on the verge of complete failure for one of its primary wells.

To solve this issue, the Commissioners authorized Lord Arizona to apply for emergency financing from the Water Infrastructure Finance Authority of Arizona (WIFA) for $347,970. This loan would replace both malfunctioning wells, ensuring a stable water supply for its customers. The Commission recommended approval for this loan at an interest rate of up to 6%. This decision reflects the dire need to maintain service and recognizes the company's sudden hardship.

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-02479A-23-0210

Scottsdale Man Admits to Scamming His Close Friend and Neighbor

The Arizona Corporation Commission ordered respondent Patrick D. Nilles of Scottsdale to pay $75,000 in restitution and a $20,000 administrative penalty for committing securities fraud. 

The Commission found that, while not registered to offer or sell securities in Arizona, Nilles took a neighbor’s money to supposedly invest it in the stock market. After becoming close friends with the neighbor, Nilles used some of the investor’s funds for personal expenses and falsely represented financial gains in his quarterly trading reports to the investor. Additionally, the Commission found Mr. Nilles had state and federal tax liens filed against him, which he did not disclose to the investor.

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 S-21159A-21-0252

FY25 Budget Approved

The Arizona Corporation Commissioner approved a decision package that seeks a combined total of $2.2 million in funding to address two primary areas of need:

Permanent Funding for New Employees ($1,200,000)

To address the ongoing 20% turnover in staffing, primarily due to retirements and resignations, the ACC is asking for a $1.2 million extension of the one-time funds received last year in permanent funding. This will help in continually covering the costs of hiring, training, and retaining employees, along with equipment and certification expenses.

Performance Metrics & Impact: Success will be marked by timely responses to Commission inquiries, fraud investigations, business filings, and meeting various approval request processing timelines. Without this funding, Arizona may continue to rank in the bottom tier nationally in processing utility rate cases, leading to delays and rising costs in critical infrastructure.

These requests are vital to support ACC's constitutional and statutory obligations to the people of Arizona and ensure timely processing, staff retention, and a stable regulatory and investment climate.

Salary Increases for Staff ($1,000,000)

The Commission requests $1 million to address state-wide inflation by offering SPOT bonuses, additional salary adjustments, and job reclassification to staff exceeding expectations on performance evaluations. This amount will cover 3-5% increases across positions and align with ADOA HR guidelines used in previous years.

Performance Metrics & Impact: The measures to quantify success include decreased turnover, timely responses to Commission inquiries, fraud investigations, business filings, workshop coordination, and various approval request processing. The risk of not funding this initiative can result in increased processing times, loss of institutional knowledge, and decreased morale.