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

 Securities

• Michael Alexander Candelario et al. 

Corporations 

• Corporations Division Policy and Policy Implementation Plan

Utilities

• Ponderosa Utility Corporation

• UNS Electric, Inc.

  
  

Michael Alexander Candelario et al. (S-21270A-23-0264) - The Arizona Corporation Commission ordered respondent Michael Alexander Candelario of Buckeye and his affiliated companies to pay a total of $199,110 in restitution and $55,000 in administrative penalties in connection with a “fix-and-flip” real estate scheme.  The Commission found that, while not licensed to offer and sell investments in Arizona, Mr. Candelario and his affiliated companies—REI Management LLC (formerly known as WLA Labs, LLC) and REI House Buyers, LLC— solicited investors through multiple websites with claims of aggressive investment returns of up to 30 percent per quarter. 

Arizona Corporation Commission (AC-00000A-24-0269) -The Commission approved the Corporations Division Policy Framework and Implementation Plan, which will allow the Division to implement four new policy changes help combat business fraud and fraudulent findings and increase business filing efficiencies. The Corporations Division will now initiate an information campaign via email, press release, and flyers, notifying the public of the impending policy changes which are anticipated to go into effect in mid-June.

 Ponderosa Water, LLC (W-0147A-23-0161 & W-0147A-24-0261) – Ponderosa is A Class E water utility that provides water service to approximately 44 metered connections in an unincorporated community in Gila County near Strawberry.  Ponderosa’s CC&N was previously revoked due to its failure to submit annual reports, not being in compliance with the Arizona Department of Water Resources, not being in compliance with the Arizona Department of Environmental Quality, and for having outdated Tariff information on file with the Commission.  The Company’s last rate case was in 1985 – 40 years ago.  Their system is in major disrepair and the Company is seeking financing to update its aged infrastructure.  Customers currently pay a flat rate of $12.00 a month. The Commission voted unanimously to approve a rate increase that will see an increase for the typical residential meter with median usage of up to 810 gallons will by approximately $10.65, to about $22.65 a month.  Residential meters with a median usage up to 2.519 gallons per month will now pay approximately $27.05 a month for water service.

 “Today’s decision in the Ponderosa Water rate case demonstrates the Commission’s commitment to judiciously balancing the long overdue infrastructure support needed to deliver safe drinking water to for small, troubled water companies,” said Commissioner Rachel Walden.  “I am grateful for the assistance of the Commissioner’s Ombudsmen’s Office.  The decision today will begin the investments Ponderosa needs to deliver clean and reliable drinking water.  I hope that our decision today will support the Domestic Water Improvement District (DWID) to work with this utility to provide a long-term solution for reliable drinking water to these residents.”

UNS Electric, Inc. (E-042004A-22-0251) – UNSE requested approval from the Commission to extend its Energy Efficiency (EE) Implementation Plan (Plan).  An amendment introduced by Chair Kevin Thompson and unanimously approved by the Commission directs UNSE to prioritize programs designed to assist low-income rate payers and to assist schools with energy efficiency improvements as part of the Company’s approved DSM/EE Plan. The order also directs UNSE to pause certain programs that the Company has spent a combined total of $450,000 on in 2024, including the Residential New Construction Program, Behavioral Comprehensive Program, and Home Energy Reports Program. The Chair’s amendment also increases the individual cap for low-income weatherization projects from $6,000 to $8,000 and extends the program benefits to include multi-family housing. 

An additional amendment introduced by Commissioner Rachel Walden was also unanimously approved, it specifies that the EE Plan is approved for the 2025 Plan Year only.  “I am fully supportive of focusing energy efficiency programs to assist those who are most in need, which are our low- and fixed-income families”, said Commissioner Walden.  “Our vote today was targeted to keep utility rates as affordable as possible by removing unnecessary subsidies for programs which are not needed.  My amendment, in concert with Chair Thompson’s, prioritize the focus for energy efficiency programs which deliver the most cost-effective outcomes, while ensuring the utility stays within budget and returns to the Commission for a review of its proposed plans beyond the 2025 plan year.”   Pursuant to UNSE’s request, the Company’s modified DSM/EE programs will remain in place through 2025 while the Commission continues to move forward with ongoing proceedings that would repeal the 2010 rules and standards.