News Release

Phoenix, Ariz. -  The Arizona Corporation Commissioners voted on 26 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:

• Granite Oaks Water Users Association  

Granite Oaks is a Class D water utility providing service to approximately 469 residential customers in an area northeast of Prescott in Yavapai County. Granite Oaks seeks approval for a line of credit in the amount of $100,000  for the addition of a back-up well. The project will be partially funded with grant monies that were made available from the American Recovery Plan Act and the line of credit is intended to be used if internal cash flow is insufficient.

• Harrisburg Utility Company, Inc. and Cactus State Utility Operating Company, LLC
• Holiday Enterprises Incorporated, dba Holiday Water Company and Cactus State Utility Operating Company, LLC
  

• Lagoon Estates Water Company, Inc

Lagoon Estates Water Company’s request to modify the scope of projects that were previously approved.  In the initial scope, Lagoon Estates was authorized to acquire a used work truck for $43,000.  Lagoon Estates is now authorized to acquire two used work trucks for the same total price of $43,000. 

• Los Cerros Water Company, Inc. and Cactus State Utility Operating Company, LLC
• Lucky Hills Water Company and Cactus State Utility Operating Company, LLC  
• Michael’s Ranch Water Users’ Association

• EPCOR Water Arizona Inc.
  

EPCOR’s requests to remove the condition of filing ADEQ Approval of Construction for the Freedom Farms Development  and Skyline Village Development were approved for the following reasons: The infrastructure is being designed and built by the Developers, ADEQ will issue the AOC to the Developer and not the Utility,  and The issuance and approval of the AOC falls entirely under the purview of ADEQ.

Tucson Electric Power Company

TEP’s application torevise the Net Metering Avoided Cost Rate was approved. This represents a decrease in the current avoided cost rate.

• Trico Electric Cooperative, Inc. 

Trico seeks to provide renewable energy to customers that cannot install a PV solar system on their home. Trico will set a portion of the energy from its Avion Solar and Battery Facility and its Chirreon Solar and Battery Facility to serve participants in the pilot program. The Solar Block Energy Rate would be considered a premium that customers can voluntarily sign up for to meet up to 100% of their energy consumption.  Costs will be fixed for participants for a period of 10 years and participating customers

 

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

• Arizona Public Service Company

APS’s Company’s application to reset the Lost Fixed Cost Recovery Mechanism in Accordance with the Approved Plan of Administration was approved. The LFCR rates are now $0.533 per kW per month for customers on a demand rate and $0.00180 per kWh per month for customers on an energy-only rate.  This becomes effective during the first billing cycle in May 2024. 

• Dixie Escalante Rural Electric Association, Inc

• Great Prairie Oasis LLC dba Sunland Water Company

Commissioners voted 4-1 (Commissioner Tovar cast the dissenting vote) to approve the following Regular Agenda item:

• Graham County Electric Cooperative, Inc.

Commissioners voted 3-2 to approve the following Regular Agenda item:

• EPCOR Water Arizona Inc. (WS-01303A-22-0236 and WS-02156A-22-0237)

By a vote of 3-2 the Commission approved the rate increases. Chairman O’Connor and Commissioner Tovar both cast dissenting votes. The decision consolidates the wastewater districts of Luke 303 and Arizona into a new Sonoran District, and partially consolidates Rio Verde.  The Commissioners also approved a mechanism that will allow EPCOR to refund payments received to connect to the Luke 303 Wastewater System to the Sonoran ratepayers in the form of a bill credit.  That amount will depend on the monies received by EPCOR and will be adjusted annually.  The utility originally filed this rate case in 2022.

 

TELECOMMUNICATIONS:

Commissioners voted 5-0 to approve the following Consent Agenda items, canceling the CC&Ns for:

• BCE Nexxia Corporation dba BCE Global – USA
• Interstate Telecommunications, Inc.
• Dish Wireless LLC

Dish Wireless, LLC’s application for Designation as an Eligible Telecommunications Carrier in the State of Arizona for the Limited Purpose of Providing Lifeline Service to Qualifying Customer was approved.

 

SECURITIES

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

• David Russell Dales (S-21202A-22-0224)

  David Russell Dales of Tucson is ordered to pay $23,006 in restitution and a $5,000 administrative penalty for fraudulently transacting business as an investment adviser representative. The Commission found that, after being terminated by his investment advisory company, Dales billed clients using his former employer’s logo and title of “financial advisor" on at least two occasions after his termination. Further, Mr. Dales failed to inform his 16 clients about his termination as an investment adviser representative and that he was unlicensed to provide investment advisory services in Arizona.

• Sunnyslope Capital Advisers, LLC et al. (S-21218A-22-0325)

  Warren C. Nagler of Scottsdale and his affiliated company, Sunnyslope Capital Advisers, LLC, is ordered to pay a $10,000 administrative penalty for providing investment advisory services for a fee without being licensed with the Commission. Also, Nagler is required to pay $96,802 in restitution, the amount of fees paid by his clients.  The Commission found that Nagler repeatedly misrepresented himself as a license investment adviser to at least four clients as well as other financial institutions and securities issuers.

• Tradestation Crypto, Inc. (S-21295A-24-0050)

• The $1.5 million multistate settlement was negotiated by a North American Securities Administrators Association (NASAA) task force. NASAA is an association of United States and Canadian securities regulators. The task force determined that during the offering period, TradeStation engaged in the unregistered offer and sale of securities via its crypto interest-earning program.

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  SAFETY

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

• Union Pacific Railroad Company (RR-03629A-17-0310), (RR-03639A-17-0311), (RR-03639A-17-0312) and (RR-03639A-17-0313)

In 2018, the Commission approved applications to modify four existing at-grade crossings in Tucson.  On February 28, 2024, the City of Tucson filed a Motion to extend the construction deadline to August 29, 2025.  In its Motion, the City explains that construction has been delayed because difficulties, including supply-chain disruptions, increased the time for materials to be delivered that were necessary to keep the Project o schedule.