News Release

Phoenix, Ariz. —   The Arizona Corporation Commission voted on 19 matters, including securities, telecommunications, electric, and water items.  Highlights from the meeting include:

 Securities

• United Planners’ Financial Services of America

Utilities

• Arizona Electric Power Cooperative, Inc. and Mohave Electric Cooperative, Inc.
• Global Water – Palo Verde Utilities Company, Inc.
• Tonto Creek Water Company, LLC
• Arizona Water Company
• ACC Discussion on Modification to Test Year Rules

 United Planners’ Financial Services of America (S-03367A-24-0129) –  Scottsdale-based United Planners Financial Services of America (UPFS) was ordered to pay $1,059,823 in restitution and a $50,000 administrative penalty for failing to discover fraudulent activity conducted by one of its registered securities salesmen.  Philip A. Riposo worked for UPFS from December 2013 through March 2022, and allegedly stole money from 24 of his clients, issuing fake financial statements to conceal the fraud. When the fraud was ultimately uncovered, Riposo reportedly admitted he’d been engaging in the scheme for more than 30 years.  The ACC brought action against Riposo in 2023; Riposo passed away before any decision was concluded in the case.

Arizona Electric Power Cooperative, Inc. and Mohave Electric Cooperative, Inc. (E-01733A-24-0087) -  The Commission voted 5-0 to approve the electric energy services agreement between Arizona Electric Power Cooperative, Inc., Mohave Electric Cooperative, Inc. and Nucor Steel Kingman, LLC.  AEPCO will act on behalf of MEC to provide energy, capacity, and services to serve Nucor’s peak load. Nucor will self-serve part of its energy needs via solar generation and battery storage facilities; Nucor is solely responsible for construction, installation, and operation of its generation and storage facilities.  Staff confirmed, no portion of any construction will be publicly funded and MEC customers will not bear any direct or indirect costs associated with the agreement.

Global Water – Palo Verde Utilities Company, Inc. (SW-2445A-24-0090) - After debate over whether customers should receive a refund or bill credit at this time, the Commission voted 5-0, approving a temporary, monthly bill credit of $1.73 for the average residential wastewater customer.  The Utility recently discovered an erroneous accounting entry that began impacting rates in 2010, which mistakenly added a charge to customers’ bills. The temporary monthly credit is intended to be an offset for current customers.  A third-party auditor will be reviewing the utility’s financials, and the Commission will then consider a future refund recommendation.

Tonto Creek Water Company, LLC (W-20682A-24-0116) – The  Commission voted 5-0, approving Tonto Creek’s emergency rate case application.  Customers will be billed a monthly surcharge of $20.81 per meter for 24 months, or until the Commission approves new permanent rates. No rate case since 2009.  Small water company, temporary bill impact of more than $20/month for two years, or until new rate case.  Tonto Creek serves about 30 customers. The Utility has not filed a rate application since 2009.  The surcharge is set to recover costs associated with increased management fees and an increase in repair and maintenance costs. Richard Cook, representing Tonto Creek, expressed his appreciation of the Utilities Division Staff’s work and assistance with the small water company in this case, saying “it’s more valuable than gold.” 

Arizona Water Company (W-01445A-22-0286) – The Commission voted 5-0, approving Arizona Water Company’s rate application for a rate increase for its Eastern Group, which includes about 38,000 customers in the Apache Junction, Superior, Sierra Vista, and Falcon Valley area.  ACC staff recommends a 22% revenue increase.  The monthly bill impacts for residential customers will range from a 25% - 45% increase.  AWC president, Fred Schneider, remarked that the utility has spent $1.6 million on water storage tank maintenance and rehabilitation to extend the life expectancy to 100 years for some of their tanks.  The Commission’s approval also allows the utility to collect a surcharge for eligible water sustainability projects to reduce their reliance on groundwater sources.  The new rates became effective July 1, 2024.

Arizona Corporation Commission - Electric – Test Year Rules (AU-00000A-23-0012) – The Commission voted to further investigate possible modifications to the Commission’s Test Year Rules.  The Commission agreed to hold workshops to explore whether utilities should provide for a future test year or a formula rate plan, instead of historical test year numbers.  Commissioner Nick Myers says it would help reduce regulatory lag and benefit both customers and the utility companies.  Several utilities expressed their support of possible changes to test year rules. “What we are considering here is a major change in how we have historically approached rate cases and there are meaningful impacts to any decision we make in the future with regard to our approach to test year considerations,” said Chairman Jim O’Connor.