News Release
June 11, 2024 Open Meeting Highlights
Phoenix, Ariz. — The Arizona Corporation Commission voted on 25 matters, including securities, telecommunications, electric, water, and natural gas items, as well as an order issued by the Federal Energy Regulatory Commission. Highlights from the meeting include:
Securities
NOTE: The Commission issues this corrected news release to reflect the fact that the company, ISA, was found in violation of the anti-fraud provisions of the Securities Act, not Mr. Bjork.
- Phoenix Tech Company Ordered to Pay Nearly $500,000 in Restitution and Penalties
- Former Investment Professionals Sanctioned or Selling Unlawful Income-Stream Investments
- Commission Finds UK Company Defrauded Investor with Crypto-Related Scheme
Utilities
- Cactus State Utility Operating Company, LLC and Sacramento Utilities, LLC
- Global Water Resources, Inc.
- UNS Electric, Inc.
ISA Industries, Inc. et.al., (S-21205A-22-0239)- ISA Industries, Inc. is ordered to pay $412,557 in restitution and $50,000 in administrative penalties for violating Arizona securities laws. The Commission found that Bjork sold to investors $598,057 of unregistered common stock in ISA. The Commission found that ISA told investors that the Commission had approved its private placement memorandum (PPM) and misrepresented in the PPM that it manufactured technology when it had not actually manufactured technology through at least September 1, 2022.
NOTE: The Commission issues this corrected news release to reflect the fact that the company, ISA, was found in violation of the anti-fraud provisions of the Securities Act, not Mr. Bjork.
Phillips Financial Services, LLC et.al. (S-21238A-23-0083) - David Todd Phillips of Gilbert, David Thomas Phillips of San Tan Valley and their affiliated companies, Phillips Financial Services, LLC and Estate Planning Specialists, LLC, were ordered to pay a total $100,000 in restitution and a $20,000 administrative penalty for unlawfully selling income-stream investments. The respondents solicited military veterans and other retirees entitled to an income stream from pension or disability payments to accept a lump sum in exchange for several years’ worth of the monthly payments. They then sold these income streams as investments through salespeople and insurance producers. Respondents also committed securities fraud by failing to disclose the owner is a convicted felon who had pled guilty to multiple federal crimes and served prison time.
Platinum Universal Trades (S-21289A-24-0021) - A default order was issued against respondent Platinum Universal Trades after the company failed to respond to charges of defrauding an Arizona investor with a crypto-related investment scheme. The company is required to pay $107,000 in restitution and a $30,000 administrative penalty to the state of Arizona. Platinum Universal Trades misrepresented that a picture and signature represented company’s "executive manager," while the image was actually a stock photo and the signature belonged to former President Richard Nixon. On the company website, there was a list of crypto wallet addresses with withdrawal amounts that were fabricated to impress potential investors. The respondent sent the Arizona investor fraudulent checks totaling $60,000 and had the investor wire that amount to Platinum Universal Trades before the checks cleared.
Global Water Resources, Inc. (W-03945A-23-0130, W-01583A-23-0131, W-01854A-23-0132, W-21150A-23-0133, W-02368A-23-0134, W-02301A-23-0135 and WS-04245A-23-0136) - Each of the seven Global Water Utilities filed a Rate Application proposing consolidation of the Utilities into a new district to be known as Global Water – Saguaro District Water Company, Inc. (“Saguaro District”), with consolidated rates. Consolidation was granted, and a Settlement Agreement was reached and resolves all contested issues between the Global Water Utilities and Staff. This is the first rate case settlement approval since the reaffirmation of the Settlement Policy. The Recommended Opinion and Order was voted on and approved unanimously just 21 days after it was issued.
UNS Electric, Inc. (E-04204A-22-0251) – The Commission voted 4-1, with Commissioner Tovar dissenting, to approve UNSE’s System Reliability Benefits Mechanism (SRB) proposed Plan Of Administration (POA). This marks the first SRB POA filing and approval since the Commission implemented the recovery mechanism, aimed at reducing regulatory lag.
UNS Electric, Inc. (L-00000F-24-0056-00230) - The Commission voted 4-1, with Commissioner Tovar dissenting, to grant UNSE’s Disclaimer of Jurisdiction and authorize the expansion of UNSE’s Black Mountain Generating Station without a Certificate of Environmental Compatibility.
News Release: https://azcc.gov/news/2024/06/12/acc-vote-regarding-unse-black-mountain-generating-station-expansion-project
Arizona Corporation Commission - FERC Order 1920 (E-00000A-21-0112)
The Commission voted 4-1, with Commissioner Tovar dissenting, to approve and file a “Request for Rehearing” with the Federal Energy Regulatory Commission (FERC) regarding Order No. 1920 entitled “Building the Future Through Electric Regional Transmission Planning and Cost Allocation” issued on May 13, 2024. The Arizona Corporation Commission took this step to address concerns of the impact of this order on Arizona ratepayers, and its impact on the Commission’s constitutional mandate to set just and reasonable rates.