If you are a member of the media, please email ngarcia@azcc.gov or call (602) 542-0728.
Phoenix, Ariz. — The Arizona Corporation Commissioners voted on 22 matters, including electric and water utilities, railroad, and securities items. Highlights from the meeting include:
UTILITIES
SECURITIES
RAILROAD
EPCOR Water's Standpipe Service for Rio Verde Foothills
EPCOR Water Arizona Inc. was authorized to install standpipe water service to Rio Verde Foothills in Maricopa County, a region that lost its hauled water service from Scottsdale as of January 1, 2023, until the Legislature took action. The Commissioners weighed several potential service options, varying in cost and infrastructure requirements. EPCOR is considering several different options for the source of the water. Once those plans are finalized they will be presented to the Commission. The Commissioners ordered a cost-of-service analysis to determine the trued-up rate.
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-01303A-22-0264
Humboldt Water System's Request for Rate Increase and Financing Approval
Humboldt Water System, Inc. was given authorization to rate increases and secure long-term financing for infrastructure improvements. They propose to borrow $699,732 from the Water Infrastructure Finance Authority for projects including water meter replacement and storage tank construction. This sets the median monthly bill increase for residential customers at 20.81%, inclusive of the new loan surcharge. The proposal is deemed necessary for the utility’s financial health and to improve customer service.
All documents relating to this agenda item can be found in the Commission's online docket at edocket.azcc.gov and entering docket numbers W-02197A-22-0257 and W-02197A-22-0265
Emergency Financing for Worden Water Company's Well Construction
Janice E. Worden and Lawrence A. Worden, operating the Worden Water Company (WWC), filed for emergency financing to drill a new well after their only well collapsed. They seek $62,000 from the Water Infrastructure Finance Authority of Arizona (WIFA) and request an emergency rate surcharge to cover water hauling costs of $14,000. The Commission approved financing authorization in the amount of $82,000 to cover contingencies and testing costs over 24 months. This action ensures continuous and reliable water service for WWC’s customers.
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-20391A-23-0254
Commission Finds Scottsdale Man and his Estate Planning Company Defrauded Investors
The Corporation Commission sanctioned respondents Jason Wootten of Scottsdale, Sean Cagle of Phoenix, Brad Mason of Phoenix, and their affiliated company, Family Tree Estate Planning, LLC, for defrauding investors with a real estate Ponzi scheme. The Commission ordered Wootten and his company to pay $3,738,040 in restitution and a $100,000 administrative penalty.
The Commission found Wootten and his company conducted seminars on creating trusts in Arizona, and once in the office of Family Tree Estate Planning, investors were offered and sold unregistered securities and notes issued by companies controlled by EquiAlt, LLC. Respondents told investors EquiAlt, LLC was raising capital to purchase, improve, lease, and dispose of distressed real property. In actuality, EquiAlt, LLC was operating as a nationwide Ponzi scheme.
The Commission found none of the respondents were authorized to sell securities in Arizona when they made multiple misrepresentations and material omissions regarding the risk and liquidity of the EquiAlt securities. In some instances, Wootten facilitated the transfer of investors’ monies into a self-directed IRA, urging at least one investor to put her entire retirement fund into the EquiAlt securities. Most of the investors were 55 years and older with no investment experience and were not able to withstand a financial loss.
In settling this matter, the respondents admit to the Commission’s findings and agree to the entry of the consent order. All documents relating to this agenda item can be found in the Commission's online docket at edocket.azcc.gov and entering docket number S-21147A-21-0051
BNSF Grand Avenue Crossing Upgrades Approved
The Commission approved plans to modify ten at-grade crossings along Grand Avenue in Maricopa County. These upgrades, costing an estimated $4.12 million, are to replace the existing simultaneous preemption systems with advanced preemption systems at each crossing.
This project aims to enhance safety due to high traffic and proximity to schools and hospitals. The Federal Highway Administration will fund 90% of the project, and ADOT will cover the remaining cost. The upgrades, agreed upon by both ADOT and BNSF Railway Company, will not require closing any crossings and are expected to complete by Fall 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 RR-02635B-23-0141
Commissioners Approve Union Pacific Railroad's New Public At-Grade Crossings
The Union Pacific Railroad Company (UPRR) was authorized to construct five new public at-grade crossings and improve an existing one in Mesa, Arizona, as part of the PIRATE Line project. This $1 million per crossing project, fully funded by UPRR, is in response to a service request by Commercial Metals Company. It involves track extensions and modernizing crossings with state-of-the-art safety features.
The Town of Queen Creek intervened due to its proximity, although all crossings are in Mesa. No objections were raised against the proposed modifications. The project, which also involves a potential future grade-separated crossing at Ellsworth Road, is approved with conditions to monitor traffic and delay hours.
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-03639A-22-0287
