Grand Canyon Times

The Arizona Corporation Commission convened in Phoenix, Arizona, to deliberate on 17 matters related to securities, electric, and water issues. Key decisions from the meeting are outlined below.

In the securities sector, the Commission participated in a $17 million enforcement settlement with Edward D. Jones & Co., L.P. This resolution stemmed from a four-year investigation led by a group of 14 state securities regulators under the North American Securities Administrators Association (NASAA). The inquiry focused on Edward Jones's supervision of customers who paid front-load commissions for Class A mutual fund shares before moving brokerage assets into fee-based investment advisory accounts.

Regarding utilities, a significant decision involved Flagstaff Ranch Water Co., Inc. and Cactus State Utility Operating Company, LLC. The Commission voted 4-1 to approve the sale of assets and transfer of the Certificate of Convenience and Necessity from Flagstaff Ranch Water Company to Cactus State Utility Operating Company. Commissioner Rachel Walden dissented during this vote. Concerns were raised about cellular antennas attached to a water tank without prior approval from the Commission. Chair Kevin Thompson expressed reservations about funds derived from unapproved cell phone tower leases not benefiting ratepayers: “As Commissioners, we take votes every meeting that set the precedent moving forward. My personal conviction is that those funds should go toward the benefit of the ratepayers.”

For Arizona Public Service Company (APS), the Commission unanimously approved an increase in Power Supply Adjustment (PSA) rates effective March 1. This adjustment will raise costs by $0.002 per kWh for APS customers, translating to an additional $2.10 monthly for average residential users consuming 1,050 kWh. Commissioner Rachel Walden supported an expedited payoff schedule: “In the interest of saving tens of millions of dollars… per year for the ratepayer, I do support an expedited payoff schedule.”

Additionally, during an executive session concerning modifications to Test Year Rules (AU-00000A-23-0012), legal advice was received regarding two pending rehearing applications linked to Decision No. 79647. Subsequently, at the Open Meeting, all five commissioners voted against these applications and instructed their Office of Legal Counsel to draft a written order.