News Release

Phoenix, Ariz. -  The Arizona Corporation Commissioners voted on 20 matters, including energy, telecommunications and water utilities, securities, and safety items.  Highlights from the meeting include:

UTILITIES

Commissioners voted 5-0 to approve the following Consent Agenda items:

• Wilmot Energy Center II, LLC

This Project includes construction of a new 6.6-mile 138 kV generation tie transmission line that will connect the planned renewable generating station and battery energy storage system to the regional electric grid.  The Solar Facility and Project Substation will deliver energy through the existing Tucson Electric Power kV.

• Sundog Energy Center LLC

This Project includes construction of a new 1.7-mile 238 kV transmission line that connect the Sundog Solar Energy Center to SRP’s Pinal Central Substation in Coolidge. The proposed energy center is a 200 MW solar photovoltaic facility with a 200 MW battery storage system.

• Cayetano, Inc. DBA Lakewood Water Company
• Global Water-Santa Cruz Water Company, LLC and Global Water – Palo Verde Utilities Company, LLC
• Hassayampa Utilities Company, Inc.
• Red Rock Utilities, LLC
• Utility Systems, LLC and Cactus State Utility Operating Company, LLC
• Water Utility of Greater Tonopah, LLC
• Arizona Electric Power Cooperative, Inc. (AEPCO)
• Trico Electric Cooperative, Inc.

Commissioners voted 4-1 (Commissioner Tovar voted “no”) to approve the following Regular Agenda item:

• Navajo Water Co., Inc.

This water utility is located in Show Low and serves approximately 339 customers. The Marquez Peterson amendment to the Recommended Opinion and Order establishes a $340,316 revenue requirement to allow the Company to cover its operating expenses.  The rate increase would impact the median monthly residential customer bill would go from $48.86 to $59.94.

All documents relating to this agenda item can be found in the Commission’s Online docket at edocket.azcc.gov and entering docket number W-03511A-23-0260

Commissioners voted 5-0 to approve the following Regular Agenda item:

• Mohawk Utility Company and Cactus State Utility Operating Company, LLC

Mohawk Utility provides water service to approximately 160 connections in Yuma County, its current rates were set in 1997 and have not been changed in the past 27 years.  The Commission approved Cactus State Utility’s acquisition of smaller water wastewater utilities in Arizona in November 2023.  The commission unanimously approved a deferred debit in the amount of $170,000 for the consolidation.

All documents relating to this agenda item can be found in the Commission’s Online docket at edocket.azcc.gov and entering docket number WS-21155A-23-0227 and W-02341A-23-0227

TELECOMMUNICATIONS:

Commissioners voted 5-0 to approve the following Consent Agenda items:

• DF&I Arizona, LLC
• Smith Bagley, Inc. DBA Cellular One
• Summit Infrastructure Group, LLC

Commissioners voted 0-5 on the following Regular Agenda item, which failed:

• Arizona Corporation Commission (AZ Univ. Svc. Fund - 97) – Proposed Order In the Matter of the Notice of Proposed Amendments to the Arizona Universal Service Fund. 2024 Emergency Monthly Arizona Universal Service Fund Carrier Surcharges.

Arizona Corporation Commissioners voted to 0-5, declining the Staff recommended proposal to implement new Arizona Universal Service Fund (AUSF) 2024 Surcharge rates.  This decision affects telecommunications customers of carrier, Frontier Communications of the White Mountains, which provides service to a rural mountainous area in the easter part of the State including Show Low, Snowflake, Springerville, Heber, Pinetop and Lakeside.  The carrier said funds in its AUSF account will be depleted by April 2024. Commissioners stated they intend to further discuss and decide the AUSF issue during the carrier’s rate case scheduled to take place in October 2024.

All documents relating to this agenda item can be found in the Commission’s Online docket at edocket.azcc.gov and entering docket number RT-00000H-97-0137

SECURITIES

Commissioners voted 4-0 (Commissioner Marquez Peterson recused herself from voting on this matter) to approve the following Consent Agenda items:

• David L. Shorey and Mary Jane Shorey, husband and wife, ABCO Energy, Inc., and ABCO Solar, Inc., formerly known as Westcap Energy, Inc. et al.– Recommended Opinion and Order to Cease and Desist, Order for Restitution, Order for Administrative Penalties, and Order for Other Affirmative Action.

Respondent David L. Shorey of Tucson is ordered to pay $7,666,558 in restitution, as well as a $1 million administrative penalty for defrauding investors through an energy and solar stock program.  Between 2011 and 2019, Mr. Shorey acted as control person for ABCO Energy and ABCO Solar and was found to have violated Arizona Securities Law for offering and selling unregistered securities, while not registered as a dealer or salesman in Arizona.

Commissioners voted 5-0 to approve the following Consent Agenda item:

• Integrated Advisors Network, LLC – Proposed Order to Cease and Desist, Order for Administrative Penalties, and Consent to Same By: Respondent Integrated Advisors Network LLC.

SAFETY

Commissioners voted 5-0 to approve the following Consent Agenda item:

• BNSF Railway Company

The City of Surprise was granted approval to widen and modify an existing BNSF rail crossing at Cactus Road.  The project would create three traffic lanes in each direction for a total of six lanes.  It will feature state-of-the-art railroad signals and warning signs.  The $8.5 million project is expected to begin in Spring 2024 and take about two years to complete.

All documents relating to this agenda item can be found in the Commission’s Online docket at edocket.azcc.gov and entering docket number RR-02635B-23-0259.

ACC NEW HIRE

Chairman Jim O’Connor introduced Thomas Van Flein as general counsel.   Mr. Van Flein started in his position with the Arizona Corporation Commission on March 11, 2024.  He previously served in a Chief of Staff/General Counsel role in Congress.  Mr. Van Flein and his family recently welcomed a baby boy, born just last week.