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Phoenix, Ariz. — The Arizona Corporation Commission voted on 19 matters, including railroad, securities, electric, propane and water utilities items. Highlights from the meeting include:
Railroad
Securities
Utilities
Mountain States Contracting, Inc., (RR-21275A-23-0305) - A new industry rail crossing will be constructed on 147th Avenue in the City of Glendale. It will extend from the BNSF tracks approximately ½ mile to the east to the new Nestlé facility, which will manufacture Coffee Mate creamer at its Glendale location. The City estimates that in 2027, only 710 vehicles per day will use the crossing.
Amazon Gold, LLC, et al (S-21230A-23-0053)- Theodore Frances Dinges of Scottsdale, Gary Lee Dinges of Oregon and Amazon Gold, LLC were ordered to pay $224,044 in restitution and a total of $40,000 in administrative penalties for fraudulently selling membership interests to finance a gold mine. The respondents raised funds from 34 investors, including 13 from Arizona. The respondents stated the investment proceeds would be used to purchase gold in Brazilian gold mines. However, the respondents made multiple misrepresentations to investors, including that Amazon Gold, LLC was “safe” or “low risk.”
News release: https://azcc.gov/news/2024/05/07/acc-finds-fraud-in-gold-mine-investment
RRE Investments, LLC, et al. (S-21219A-22-0326) - Anthony Rohlik of Mesa, RRE Investments, LLC and ECB Real Estate, LLC to pay a total of $1,222,142.00 in restitution and $30,000 in administrative penalties in connection with “fix-and-flip” real estate investments. Rohlik sold real estate investments secured by a deed of trust but often recorded the deeds of trust out of order without disclosing that fact to investors. Mr. Rohlik is a licensed real estate salesperson, but he and his affiliated companies are not registered to sell securities in Arizona. The Commission also found that Rohlik did not disclose previous bankruptcies to investors. ECB Real Estate, LLC was formed to invest in real estate, but commingled funds and used the funds to purchase properties but not in the company’s name.
News release: https://azcc.gov/news/2024/05/07/mesa-man-defrauds-investors-with--fix-and-flip--real-estate-investments
Graham County Electric Cooperative, Inc. (E-01749A-19-0108)- GCEC asked for and was granted an extension in the time to borrow from the USDA Rural Economic Development Loan and Grant Program, which promotes rural development. GCEC says under the program, several restaurants and franchises have been built or are under construction, bringing economic development opportunities to the community. GCEC’s participation in the program is scheduled to end December 31, 2026.
Tucson Electric Power Company (E-01933A-22-0107) - The Commission voted unanimously to approve TEP’s proposal to reduce its Purchased Power and Fuel Adjustment Clause (PPFAC) surcharge which will result in a decrease in average residential bills of approximately $11.91 per month assuming average monthly usage of 767kWh. . The Commission also voted unanimously to approve TEP’s proposal to refund residential customers approximately $9.5 million in excess uncommitted Demand Side Management Surcharge (DSMS) funds. TEP will apply credits over a two-month period, resulting in refunds of $5.63 to appear on customers’ June and July 2024 bills.
News release: release: https://azcc.gov/news/2024/05/08/acc-approves-a-surcharge-reduction-and-refund-for-tep-customers
Valley Utilities Water Company, Inc. and Tierra Buena Water Company (W-01412A-23-0070 and W-02076A-23-0071) –Valley Utilities and Tierra Buena were authorized to consolidate Tierra Buena into Valley Utilities. Collectively, the water companies provide service to approximately 2,200 customers near Luke Air Force Base in Maricopa County. According to the Companies, consolidation will result in economies of scale, increased efficiencies, and reduced regulatory expenses, thereby benefitting their customers, who will enjoy lower rates going forward
