If you are a member of the media, please email ngarcia@azcc.gov or call (602) 542-0728.
If you are a member of the media, please email ngarcia@azcc.gov or call (602) 542-0728.
Phoenix, Ariz. — The Arizona Corporation Commission voted on 23 matters, including securities, telecommunications, utilities, water and ACC Rulemaking. Highlights from the meeting include:
Utilities:
Arizona Public Service Company (L-00000D-11-0389-00163) – The Commission voted 3-2 (with Chair Nick Myers and Commissioner Kevin Thompson dissenting) granting Arizona Public Service Company’s request to extend the term for an additional 15 years for the construction of the Orchard Yucca 230 kilovolt ("kV") lines, described as Phase 2 in a Certificate of Environmental Compatibility approved in 2012 (CEC 163). During the hearing, a Yuma farmer provided testimony in opposition to the location of the transmission line location and potential implications impacting their family farm. APS emphasized that this is phase two of a larger transmission project originally noticed in 2012, and is part of the Company’s long-term planning to serve future growth in west Yuma County.
Trico Electric Cooperative, Inc. (E-01461A-26-0181)- The Commission granted Trico’s request to secure long-term debt financing for the construction of a fiber network extension of its Smart Grid Fiber communications network, which would allow Trico to provide broadband fiber internet service to its members. Trico also received a $19 million grant from Arizona’s Broadband Equity, Access & Deployment (BEAD) Program. Trico currently provides electric service to over 50,000 Member customers; so far, more than 10,000 members have pre-subscribed for the new fiber internet service. Trico would be the service provider and manage its electric smart grid by using the fiber. The Company would have separate internal divisions for its electric and fiber internet businesses, with the fiber internet division making lease payments to its electric division for use of the fiber. Commissioners expressed concern about the company’s venture into providing fiber internet services and using its electricity generation assets as collateral. The Commission approved Vice Chair Rachel Walden’s amendment of the financing application requiring Trico to study, develop, and submit its ring-fencing structure and procedures to the Commission for approval to protect the assets of Trico and prevent subsidization, the amendment also extends the debt authorization period from four years to ten.
Voyager at White Mountain Lakes Water Company, Inc. and Silver Creek Water Company (W-01983A-26-0051 and W-21391A-26- 0051)- The Commission unanimously approved the sale of assets from Voyager to Silver Creek Water Company for a purchase price of $1.1 million. Voyager serves about 740 customers in White Mountain Lake, in rural Navajo County. The company has a history of non-compliance with the Commission, Arizona Department of Water Resources (ADWR), and Arizona Department of Environmental Quality (ADEQ). Its former owner passed away unexpectedly. The Commission acknowledged those who stepped up and managed the water utility to maintain services and ultimately find a new owner for the company.
Bermuda Water Company, Inc. (W-01812A-25-0166) – The Commission voted 3-2 (with Vice Chair Rachel Walden and Commissioner Thompson dissenting) on an amended Recommended Opinion and Order (ROO) in the Bermuda Water Company, Inc. rate case. Bermuda provides water service to approximately 9,460 residential customers and about 530 commercial customers located in Mohave County, including a portion of Bullhead City, Fort Mohave Mesa, and the northern portion of the Mohave Valley. Bermuda’s parent company is Nexus Water Group, Inc. The parties reached a settlement agreement, including the annual rate adjustment mechanism. In the Decision, the Commission approved an annual rate adjustment mechanism. The Company and Staff expressed opinions that differed from parts of the Administrative Law Judge’s recommended order and opinion. Bermuda offered several amendments, two of which were adopted by the Commission, each by a vote of 3-2. The monthly bill impact for the typical residential customer is a nominal increase of approximately 15 cents, from about $32.66 a month, to $32.81 a month. The ROO, however, differs vastly from the settlement agreement in that it proposed different values for the basis-point adjustment which accounts for the risk associated with the adoption of the ARAM, and the capital structure which together have resulted in a decrease for ratepayers. The monthly bill impact proposed by the ROO would have reduced monthly bills by approximately 41 cents per month. The Commissioners discussed their opinions at length. Ultimately, the Commission narrowly adopted two amendments to the ROO that result in an outcome that is closer to the figures the parties agreed to in the Settlement Agreement but still results in a slight decrease for rate payers.
Rainbow Parks, inc. D/B/A Escapees at North Ranch (WS-03448A-26-0058 and W-03448A-26-0059) – The Commission voted unanimously to approve Rainbow Parks’ rate case, the first rate case for the Company since 1999. Rainbow Parks provides water and wastewater services to approximately 430 residential customers in a Recreational Vehicle (RV) development in Yavapai County. The Company’s current rates were established in 1999. The monthly bill impact for residential customers for water services would result in an increase of approximately $5.67, bringing the average monthly bill up to about $19.58. The monthly bill impact for wastewater services for residential customers would result in an increase of roughly $16.00 a month, bringing the monthly bill to about $28.54; for non-residential customers, a monthly service charge of $57.46 was established. The Commission emphasized that the large rate increases are due to the fact that the Company had not updated its rates for 27 years, and encouraged the Company to educate its customers about the rate case and the value and improvements in water and wastewater service the Company brings to the community.