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

Commission Finds Mesa Woman Defrauded Investors with COVID-Related Investment Scam

The Arizona Corporation Commission issued a default order against Christine Lewis of Mesa requiring her to pay $283,000 in restitution and a $30,000 administrative penalty for defrauding investors during the COVID-19 pandemic.

The Commission found Mrs. Lewis misrepresented to investors that she had lucrative contracts to supply personal protective equipment (PPE) to hospitals amid the 2020 COVID-19 pandemic, promising two investors investment returns ranging from 20 to more than 500 percent. When investors asked to see the contracts, Mrs. Lewis stated the agreement was a proprietary business opportunity that could not be shared for fear of them stealing the opportunity. However, no evidence was found to support that investor monies were used to purchase PPE to fulfill a contract.

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-21199A-22-016

 

Agreement Approved for EPCOR Water Arizona Inc.

The Commissioners approved an agreement between EPCOR Water Arizona Inc. and the City of Buckeye, allowing for the termination of water service for nonpayment by City of Buckeye customers for wastewater service. The City is obliged to compensate EPCOR for potential revenue loss due to termination of service of its water customers.

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-01303A-23-0052

 

LFCR Decrease Authorized for Tucson Electric Power

Unanimous approval was given to Tucson Electric Power Company's request for the revision of Rider R-8, Lost Fixed Cost Recovery, representing a decrease in the current LFCR rate. TEP estimates that these rates would result in a decrease of approximately $0.34 on a residential bill with an average monthly usage of 807 kWh.

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-01933A-19-0028

 

Rate decrease for UNS Electric R-8 Rider

The Commissioners accepted and put into immediate effect the revision of UNS Electric’s Rider R-8, Lost Fixed Cost Recovery Tariff. This tariff allows for the recovery of certain fixed costs as a result of UNSE’s lost sales because of its energy efficiency programs. The Commission approves a decrease approximately $0.13 on a residential bill with an average monthly usage of 850 kWh.

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-15-0142

Inscription Canyon Water Company Rate Increase

The Commissioners approved a rate increase, Inscription Canyon. This Class D water utility services approximately 850 customers near Prescott. It sanctions an increase to the typical residential bill for a 5/8 x 3/4-inch meter, with median usage of 4,039 gallons, from $31.36 to $32.46, a 3.51% increase, while including a monthly surcharge of $0.49 per customer to recover rate case expense.

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-21093A-22-0296

 

Southwest Gas Corporation Recovery of Under-collected Gas Cost Balancing Account under Purchase Gas Cost Adjustment Mechanism

The Commissioners approved by a vote of 4-1 a request from Southwest Gas Corporation to adjust its Gas Cost Balancing Account, Arizona Gas Tariff No. 7.  The Commission’s vote will allow Southwest Gas to recoup an under-collected $357 million balance over a period of 24 months. Under this arrangement, a residential customer using an average of 24 therms per month would experience a bill increase of approximately $4.98 per month, with variation during summer and winter months.

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 G-01551A-23-0057

 

Line Siting Appointees: Dave Richins and Colonel Jon Gould

The Commissioners announced the appointment of Dave Richins and Colonel Jon Gould to the Arizona Power Plant and Line Siting Committee.

Mr. Richins brings a wealth of experience across diverse sectors including industry, government, and non-profit organizations. His track record shows an excellent understanding of policy implementation, strategic planning, and stakeholder engagement.

In his role as the Senior Manager at Resolution Copper, Mr. Richins showed exemplary leadership qualities by managing a large team responsible for community engagement, tribal affairs, and economic development initiatives. His strategic approach in transforming relationships with local government by building trust and partnerships is particularly notable and resulted in key strategic advancements.

His tenure as the President and CEO of United Food Bank is characterized by significant operational improvements and strategic initiatives. His ability to identify problems, streamline operations, and enhance employee morale speaks volumes about his leadership capabilities. His leadership was instrumental during the pandemic, significantly increasing public assistance and fundraising efforts.

The Commissioners also appointed Colonel Jon H. Gold, U.S. Army, Retired, to the Line Siting Committee.

Colonel Gold brings a multi-faceted career in Military Intelligence and law enforcement that will equip the committee with unmatched leadership capabilities and a breadth of experience.

Over his 32 years of service in the United States Army, Colonel Gold has worked extensively across European, Middle Eastern, and Pacific theaters. His roles as a Tactical and Strategic Intelligence Officer, a certified Counter Terrorism Instructor, and a Special Security Officer showcases his diversified skills and strategic prowess.

Colonel Gold has a record of diplomacy and collaboration. He successfully negotiated agreements among 150 independent law enforcement agencies and built a cohesive international organization with the United Nations, playing a crucial role in preventing the escalation of the Kosovo conflict. In the realm of domestic law enforcement, Colonel Gold has contributed significantly. He designed the nationwide Fugitive Targeting Plan for the US Marshals Service and was a key figure in establishing the Southern California Drug Task Force.

Public Utility Security Planning and Readiness Self Certification Form

The Commission initiated discussions on enhancing physical and cybersecurity for public utilities. Utilities Division Staff has been directed to attend a Cybersecurity training by the National Association of Regulatory Utility Commissioners (NARUC). Post-training, staff will share their recommendations at the September Open Meeting for ways to address cybersecurity with the regulated community.

 

Presentation by Commissioners Regarding Information Learned from Recent Conferences

Each Commissioner shared insights from their recent experiences:

Chairman O’Connor highlighted his trip to the Chevelon Butte wind farm, an $800 million speculative investment in technology by AES, expressing excitement about the future of the energy industry and its potential to deliver innovative private sector solutions.

Commissioner Myers hosted a Malaysian delegation, discussing their strategic plans for achieving resource adequacy within the utility sector. He is also working with Western Power Pool, who keen on achieving a critical mass of utilities to implement their reliability-first and transparent methodologies.

Commissioner Thompson hosted a Mongolian delegation and visited the APS Ocotillo Powerplant, and Global water facility in Maricopa, underscoring the importance of international collaborations in utility regulation.

Commissioner Tovar emphasized the impact of wildfires and extreme weather on utility reliability following a meeting with FERC Chairman Willie Phillips. She attended workshops on outreach initiatives to vulnerable communities, the use of smart thermostats, and efforts to rebuild after fires were among the discussed solutions.

Commissioner Márquez Peterson recalled important conversations she had at Western NARUC regarding security issues at public utilities, the refurbishment of existing facilities, and the future development of secure, public-accessible facilities. She brought up the physical infrastructure of the Commission and its own plan to ensure cyber and physical security.