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Saturday, February 22, 2025

Commissioner Walden addresses utility oversight and infrastructure accountability

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Kevin Thompson, Chair | Arizona Corporation Commission

Kevin Thompson, Chair | Arizona Corporation Commission

Commissioner Walden, alongside her colleagues, extended congratulations to Mark Christie on his confirmation as Chairman of the Federal Energy Regulatory Commission (FERC). President Trump appointed Christie to this position on January 20, 2025.

During a meeting in Phoenix, Arizona, discussions centered around the Flagstaff Ranch Water Company and Walden Amendment #1 for docket W-02502A-22-0324. This amendment dealt with the acquisition of a rural water company in Yavapai County. The amendment aimed to prevent retroactive approval of 18 cellular phone antennas installed on a water tank without prior authorization. Concerns about structural integrity were raised by the Commission's lead engineer, but no test results were provided for review. There were threats that the acquisition might be jeopardized if Commissioner Walden's amendment was approved.

Ultimately, the amendment did not pass, with a vote of 2-3. Consequently, Commissioner Walden voted against the Recommended Order and Opinion. She expressed her belief that retroactive approvals send an inappropriate message to utilities that such practices can be overlooked by merely seeking forgiveness. "The integrity of my vote cannot be compromised by threats and coercion," Commissioner Walden stated. "It is not incumbent upon the Commission to retroactively approve illegal assets in order to support mergers or acquisitions." She also objected to the fact that none of the revenue from the cell phone towers benefited ratepayers; instead, over half of the lease proceeds went to owners who continue receiving passive income.

Despite these concerns, Commissioner Walden remains supportive of consolidating small and troubled water companies with better-capitalized entities, as evidenced by her voting record.

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