News Release      
  For Immediate Release | 2-22-18      
  Media Contact | Holly Ward      
  Direct | 602-542-3847      
  E-Mail |      
Commissioners Address Water Quality and APS Customer Income Tax Refunds
February 22 Open-Staff Meeting Recap

PHOENIX — The Arizona Corporation Commission today met to discuss several items on its Open Meeting and Staff Meeting agendas. Here’s a brief recap of the meeting highlights:

Federal Tax Reform Credit Approved for APS Customers

Commissioners unanimously approved a $119 million decrease in APS customer bills as a result of the recent federal tax reform act. APS submitted a request to the Corporation Commission last month to reduce its annual revenue requirement in two phases. APS was required to submit this request following a settlement agreement approved by the Commission in August. Commissioners voted today to approve the utility’s income tax refund plan.

Following Commissioner Olson’s January 31 Utility Tax Reform Workshop, Commissioners voted to approve the requirement of all public service corporations listed in the docket to address ratemaking impacts resulting from recent federal tax reform. Commissioners say the end goal is clear: ensure all utility customers receive tax benefits by requiring utility companies to pass on any financial gains made from the new tax cuts to their ratepayers.

Find a full description of this agenda item in the Corporation Commission staff memo here:

For more information on this item, please see Corporation Commission docket E-01345A-18-0003.

Investigation Ordered on Johnson Utilities LLC Water and Wastewater Service

Corporation Commissioners acted swiftly to address comments made during six public comment sessions Tuesday and Wednesday by placing an item on today’s agenda to discuss Johnson Utilities, LLC water and wastewater services. Commissioners unanimously agreed to an emergency action and directed staff to begin an investigation.

All five Commissioners attended at least one of the six public comment meetings in San Tan Valley. During each two-hour session, Commissioners listened to frustrated customers detailing a long history of poor customer service, billing, odor, and water quality concerns.

“Listening to the comments coming from customers and the community, it became very clear we needed to act fast,” said Chairman Tom Forese.

Commissioner Burns opened today’s discussion asking for a staff investigation into water quality affecting health and safety, meter reading, and billing practices. Commissioner Dunn agreed and added his major concern was the health issues discussed during the public comment meetings. Commissioner Tobin raised concern with several customer comments suggesting they feared retaliation by the utility if they complained about their water and wastewater service. Commissioner Olson agreed noting that there were far too many similar comments made throughout the meetings to be coincidental and suggested the Commissioners take immediate action. Staff was directed to begin its investigation immediately and report back to Commissioners on or before the next Commission meeting March 13.

Energy Modernization Plan Moves Forward

Corporation Commissioners discussed the Arizona Energy Modernization Plan to determine the process necessary to begin rulemaking. Staff acknowledged the process has begun with a Notice of Inquiry posted to the Corporation Commission’s online docket today. The Notice of Inquiry seeks comments from interested parties to identify additional issues and questions they believe should be addressed. Corporation Commission staff will begin to prepare a rules package following the 60-day comment period ending April 23, 2018.

For more information on this item, please see Corporation Commission docket E-00000Q-16-0289.


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About us:
The Arizona Corporation Commission was established by the state’s constitution to regulate public utilities and business incorporation. The five Commissioners elected to the Corporation Commission oversee executive, legislative, and judicial proceedings on behalf of Arizonans when it comes to their water, electricity, telephone, and natural gas resources as well as the regulation of securities, pipeline, and railroad safety. To learn more about the Arizona Corporation Commission and its Commissioners, visit