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Phoenix, Ariz. — The Arizona Corporation Commission voted on 23 matters, including securities, electric, and water items. Highlights from the meeting include:
Securities
Utilities
Gregory Patrick Talbot et al. (S-21217A-22-0321) - The Commission ordered insurance producer Gregory “Greg” Patrick Talbot of Phoenix to pay $1,411,950 in restitution and $50,000 in administrative penalties for defrauding investors with a real estate Ponzi scheme. The Commission found that Mr. Talbot sold “alternative” investments offered to investors in funds controlled by a Florida company, EquiAlt, LLC. Investors were told EquiAlt, LLC was raising capital to purchase, improve, lease and dispose of distressed real property. In reality, EquiAlt, LLC was operating as a nationwide Ponzi scheme.
Todd R. Anderson (S-21312A-24-0134)- Following an administrative hearing, the Arizona Corporation Commission denied the investment adviser representative license (IAR) application of Todd R. Anderson of Tucson, finding the Financial Industry Regulatory Authority (FINRA) has permanently barred Mr. Anderson from obtaining a license from the industry. The Commission found that Mr. Anderson was the subject of at least one other FINRA investigation, which resulted in restitution, penalties and license suspension. Additionally, he was the subject of multiple customer complaints that resulted in settlements and has been terminated from at least two securities dealers for failure to follow company policy.
David J. Vople et al (S-21086A-19-0284) - The Commission ordered David J. Volpe of Scottsdale to pay $459,500 in restitution and a $65,000 administrative penalty for committing securities fraud and revoked Mr. Volpe’s securities salesman registration. The Commission found Mr. Volpe sold unregistered investment contracts in a defunct company, issuing false invoices to reflect the client’s investment to his long-term client who has serious cognitive impairment. Additionally, the Commission found that, while registered as a securities salesman, Mr. Volpe engaged in dishonest and unethical conduct by borrowing money from the same client. In 2021, the Maricopa County Superior Court appointed a permanent guardian and permanent conservator to Mr. Volpe’s client.
Beaver Dam Water Company Inc (W-03067A-24-0071) - The Commission voted 4-0-1, with Chair Thompson recusing himself from the vote, to approve Beaver Dam Water Company, Inc’s. rate case application. The utility provides water service to approximately 684 customers in Mohave County. The company has not filed a rate case since 2013. The newly adopted rates would result in a $27.42 monthly increase, for a typical residential meter with median usage, the average monthly bill is expected to be about $58.45. Also approved was a $8.92 monthly surcharge to finance a WIFA loan to make necessary repairs to its infrastructure. Beaver Dam consists of 3 separate water systems, and System 3 became inactive around 2009, then was developed and activated in 2022.
Oak Creek Public Service, LLC and Cactus State Utility Operating Company LLC (W-01577A-24-0198 & WS-21155A-24-0198) -The Commission approved the acquisition of Oak Creek Public Service, LLC to Cactus State Utility Operating Company LLC. Oak Creek serves about 300 customers in Yavapai County, there was much debate over whether the system is viable or a nonviable utility. Since 2021, the ACC has approved 32 acquisitions of small water companies by Cactus State, to include this sale of Oak Creek. One of its wells is likely to exceed arsenic levels in the next couple months and become out of compliance with ADWR standards, therefore treatment will be necessary. Included in the Order is approval of up to $364,290 in deferred debit, resulting in an increase of approximately $13.60 per month for residential customers. The amount is dependent on Cactus State making the necessary improvements to the system to make it viable and will be determined during Cactus State’s next rate case.
Tucson Electric Power Company (E-01933A-22-0107) - The Commission voted 5-0 to approve Tucson Electric Power Company’s (TEP) application to adjust its Purchased Power and Fuel Adjustment Clause (PPFAC) rate by increasing its credit back to customers. The new PPFAC rate results in a decrease in average residential bills of approximately $4.38 per month assuming average monthly usage of 767 kWh. The new PPFAC rate provides a credit to customers of ($0.007150) per kWh through March 31, 2026. The prior PPFAC rate effective in June 2024 was a credit of ($0.001446) resulting in a decrease in average residential bills of approximately $11.91 per month assuming average monthly usage of 767 kWh (Decision No. 79363).
Full news release: https://azcc.gov/news/home/2025/03/13/vice-chair-myers-votes-to-reduce-tep-bills-again
Arizona Public Service Company (E-01345A-22-0144) –The Commission approved a new Bring-Your-Own-Device (BYOD) Pilot program for Arizona Public Service Company (APS) customers who have installed home battery systems. This program allows participating customers to receive financial compensation for providing energy from their personal battery storage to the electric grid during specified time periods, or “events.” The customers’ stored energy would be used to help stabilize the grid during peak demand periods when excess power is in limited supply and typically purchased by a utility at a premium. The Pilot Program allows up to 5,000 APS residential customers and their battery storage providers to enable APS to dispatch participating batteries and provide aggregate Demand Response capacity, which would function like a Virtual Power Plant. Customers must agree to participate in up to 60 events per year, each event expected to last one to four hours and will occur between 4:00 P.M. and 10:00 P.M. from May 1 through October 31.
Full news release: https://azcc.gov/news/home/2025/03/13/arizona-corporation-commission-approves--new-bring-your-own-device-battery-pilot-plan
