Last week the Arizona Corporation Commissioners voted on 18 matters, including electric and water utilities, railroad, and securities items. Highlights from the meeting include:
APS Authorized to Include a Third Party Storage Contract in their Power Supply Adjustor
The Commission authorized
Arizona Public Service Company (APS) to include third party storage costs in
its Power Supply Adjustor. APS issued an all-source RFP and the selected
project was the most competitive proposal. The results of an all-source RFP to
establish a combination solar and battery project is an important step in
enhancing Arizona’s efforts to increase renewable energy production. APS
selected Sun Streams Expansion to construct, own, operate, and maintain a 300
MW solar plus 300 MW battery storage facility near the Palo Verde Generating
Station. The project is expected to be in service June 1, 2025. Commissioner
Myers’ amendment, which was adopted by the Commission, enhances reporting
requirements to gather data on the use of battery technology. Storage
technology complements the intermittency of renewable resources and further
strengthens the reliability of Arizona’s electric grid.
Fuel Costs Borne by APS to be Repaid Across 2 Years
The Commission rendered a decision that had been
postponed due to the pandemic by prior Commissions to address a
multimillion-dollar balance for APS fuel supplies. The Commission voted 4-1
to approve a two-year recovery mechanism that minimizes the impact to APS
customers to clear the outstanding balance with an estimated $12.10 per month bill
increase on the average home using 1,050 kWh/mo.
DSM Aggregation Tariff to be Refiled
In another APS matter, namely its application to
seek approval for a Distributed Demand-Side Resource Aggregation Tariff, the
Commission approved 5-0 to allow APS to re-file an application by October 1,
2023 working in concert with the Lawrence Berkeley National Laboratory. The
goal is to propose a tariff that does not shift costs from the DSM program to
other customers. This groundbreaking and innovative pilot program will leverage
customer-sited technologies like batteries and demand-side resources to help
reduce load on the grid at peak times, enhance grid resiliency and reliability,
compensate participating customers for their energy storage, and ultimately
lower costs for all APS ratepayers. Safeguards are now in place to ensure
there's no cost shift to any other rate-paying customers.
EPCOR Water Arizona Inc. Decision Lowers Surcharge
The Commission approved a decrease in the System Improvements Benefits Mechanism (SIB) from $0.48 to $0.31 per customer per month for utility service to Agua Fria, Anthem, Mohave, Sun City, and Sun City West wastewater districts.
Commission orders Automata FX Ltd and Joseph Nemeth to Cease and Desist and Pay Restitution
Automata and Nemeth purported to offer a brokerage platform for automated trading on the foreign exchange market. Between October 18, 2016 to and May 28, 2021; Automata offered and sold at least $4,766,465.85 worth of what it called "managed accounts" which would trade investor funds using proprietary algorithms that targeted 30% profit every quarter. They are held liable for securities registration and fraud violations, with the Commission ordering respondents to pay restitution in the amount of $4,766,465.85 and an administrative penalty of $100,000. Funds collected will be distributed to the investors who were defrauded by Automata.