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Phoenix, Ariz. - The Arizona Corporation Commission has marked many milestones in 2024 in each of its several divisions. A committed team of more than 200 employees supports the Commission carrying out the day-to-day operations. Thanks to the hard work and dedication of the ACC Staff, the agency has filled several vacancies recruiting talented public servants, modernized and streamlined workflow to be more efficient and productive, and implemented several new policies and programs to better serve the people of Arizona. Highlights from Divisions include:
Administrative Services Division
The Administrative Services Division processed 57 new hires in 2024, including the first batch of AmeriCorps Members. Last year, the Division processed $80 million in revenue with $46.6 million being transmitted to the State General Fund.
Corporations Division
The Corporations Division began working with its new vendor on its eCorp replacement project. The new business filing portal will significantly enhance the customer experience by streamlining filings, automating the approval of many filings, and providing enhanced security, while being user friendly. The new system will minimize paper filings and will reduce rejected filings, making it easier to conduct business in Arizona.
In 2024, the Corporations Division processed 212,547 filings and had an 85% online adoption rate. Also in 2024, 10,504 new corporations were formed, and 118,015 new limited liability companies (LLCs) were formed.
Additionally, the Corporations Division continues to network with the business community through educational and information outreach. The Corporations Division has seamlessly communicated major legal and policy changes to the public in a way that is easy to understand and provides the public with the relevant information. To date, the Corporations Division has reached hundreds of Arizona new business owners, entrepreneurs and the businesses that serve them through its outreach efforts. In addition, Corporations Division leadership has participated in several speaking engagements including an Arizona State Bar Association CLE and a panel at ASU’s Entrepreneurship Start-up School, with several other speaking engagements scheduled in the near future.
The Corporations Division recently received approval from the Commission to proceed with implementing measures to combat fraudulent filings. In coming months, the Corporations Division will begin requiring two forms of ID when filing with the Commission. The Corporations Division will also establish an LLC attestation that the business is still active if the LLC has not filed any document with the Commission for two years. Both of these policy changes will make it more difficult for “bad actors” to perpetrate fraud against Arizona businesses.
Hearing
During calendar year 2024, the Hearing Division processed 9,788 Docket filings, opened 279 New Dockets, spent 68 days conducting Hearings, held 23 Public Comment sessions, and issued 78 Recommended Opinion and Orders (ROO) and Recommended Orders (RO) – of which, 21 were issued in rate cases.
Office of General Counsel
The Office of General Counsel (OGC), formerly known as the Legal Division, handled numerous rate cases, line siting matters, proposed rules, open meetings, amendments and other legal matters. During the year, the OGC reorganized from the “Legal Division” into the “Office of General Counsel.” This reformat is closer in operation to the Federal Energy Regulatory Commission and other commission and regulatory legal departments.
The OGC processed over 30 public records requests, several dozen rate cases (big and small), one appeal to the Court of Appeals, two FERC litigation matters and multiple other matters. In addition, the OGC devoted several hundred attorney hours to work with the Safety Division in resolving two Southwest Gas safety incidents that took place in 2021 and concerns regarding the potential degradation of underground piping that culminated with a $2 million penalty and a plan to replace or abandon potentially defective pipe moving forward.
The OGC also hired experienced attorneys throughout the year and substantially increased its attorney experience level, and by the end of the year was fully staffed in all open positions.
Securities Division
In its securities cases in 2024, the Commission ordered 45 respondents to pay over $13.8 million in restitution and $1.6 million in penalties. It issued 26 cease and desist orders, stopping respondents from violating the Arizona Securities Acts. The Securities Division also continues to assist legitimate businesses in raising capital in Arizona, processing over 27,000 securities applications, many through its expanded electronic portal.
Safety Division
The Office of Pipeline Safety (AZOPS) Staff has been working with facility owners and excavators to educate and then enforce the Underground Facilities Law. In 2024, AZOPS issued a total of 383 Notices of Violations that resulted in a “monetary” civil penalty/fine for a total of $319,000. AZOPS completed 1,345 “contact only” inspections, which is when the inspector makes contact with the excavator and/or the facility owner during a field excavation activity. If both parties have complied with the Underground Facilities Law, the investigation results in no violations.
Additionally, AZOPS conducting Training Sessions with 51 Companies, totaling 169 individuals. The “Training” requirement is issued to a first time Underground Facilities Law offender as part of a Notice of Violation in lieu of a civil “monetary” penalty, which costs up to $5,000 per violation. The AZOPS inspector determines the number of employees responsible for excavation activities. The company found to be in violation has the option of administering online training presentation for the employees involved in the excavation activities. The company would be responsible for making sure its employees and field staff to complete the “Caution! Facilities Below” training course from the website https://app.coursettra.com/4iq/publicseminar/ACC/, printing out and submitting the completion certificates upon completion of the course.
AZOPS recently hired 2 full time damage prevention Investigators who will help continue improving the Damage Prevention Program.
AZOPS also received its second consecutive perfect Pipeline and Hazardous Materials Safety Administration (PHMSA) review score in 2024.
The Office of Railroad Safety Staff implemented a new bridge inspection program in 2024. To date, 140 bridge evaluations were completed through the end of 2024. The Federal Railroad Administration started a new feature called “Inspector Spotlight”, and the ACC’s Mike Welsh was featured for his work on inspecting bridges in Arizona.
UTILITIES DIVISION
The Utilities Division's key accomplishments include conducting a Rehearing in the February 2024 APS Rate Case and beginning review of several rulemaking procedures including Customer-Owned Pay Telephone (COPT) Rules, Electric Energy Rules Efficiency Standards Rules, Gas Utility Energy Efficiency Standards Rules, and Renewable Energy Standard Tariff (REST) Rules.
Here is a partial list of the heavy workload that was completed by Utilities Division Staff in 2024:
FILINGS:
SETTLEMENTS, INCLUDING THOSE STILL IN PROCESS AND SETTLEMENTS THAT HAVE BEEN ADJUDICATED:
WORKSHOPS:
STAFFING:
The Utilities Division continues to perform at an exceedingly high level while managing through longstanding challenges of being understaffed and underfunded. The Division has established a goal of reaching 69 full time employees to address current work volume as well as preparing for upcoming rate cases. The Arizona Corporation Commission will be seeking additional resources during the coming legislative session to assist in improving team building, staff recruitment, retention, and ongoing training.
The Arizona Corporation Commission looks forward to building on these accomplishments to further advance the Commission’s mission throughout 2025. On January 6, new Commissioners Rene Lopez and Rachel Walden were sworn into office, which Commissioner Lea Marquez Peterson returned for a second term. The Commission nominated Commissioner Thompson as its new Chair and Commissioner Nick Myers as Vice Chair.
