ACC Updates 4/19/21

A lot of discussion at the open meeting last week at the Commission. Most of it is pretty mundane stuff, but there were a couple of notable items.

First were the disconnect rules. You can view the quick video summary HERE.

There was also some heated discussion about the standardization of the CC&N extension process. The CC&N is the “Certificate of Convenience and Necessity”. That’s a bit phrase that basically means the utilities service territory. A utility is not prohibited from serving outside of their territory, but without a CC&N, there is nothing keeping other utilities from serving in the same area. The issue at play today is the fact that there is some ambiguity and somewhat arbitrary requirements that have been used with regards to the extension of the CC&N for various companies, and understandably, some utilities are upset about that. While nothing was resolved in this meeting, there seems to be some agreement that maybe some workshops need to be held to discuss the path forward to make this a more standardized process.

Additionally during this meeting we had:

  1. Some updates regarding progress from some utilities
  2. A ruling to allow an exemption to the master metering rules to allow solar on apartments/condos as well as mobile home parks
  3. Some orders of restitution from scammer and other fraudulent activities
  4. Authorizations for utilities to take out a loan to do some upgrades and changes (one of them to support a large, new semiconductor manufacturing plant).
  5. A few small rate cases
  6. The Chairwoman will open a new docket to discuss making the rate case process simpler for small utilities

This week will be a continuation of the items that were not addressed last week. This includes the Code of Ethics discussions, more discussion on hiring a third party consultant for the IRP process as well as the staff meeting.

Have a great week everyone, and God bless!

Nick

AZCC Updates and HB2248

Tomorrow and Wednesday (4/12/21 and 4/13/21) will be the monthly open meeting. On the agenda are a handful of rate cases, electric vehicle rulemaking and tariff discussions, solar “lost cost” discussion, discussion about using the Universal Service Fund for broadband deployment in AZ, Code of Ethics discussions, and a handful of miscellaneous items. As usual, most of these items will include opportunity for public comment, so if you have anything to say, this will be the time to make your voices heard.

HB2248 is the bill introduced by Representative Gail Griffin that codifies in law the EXISTING renewable energy rules. I highlight the fact that they are existing because it would effectively stop the proposed energy rules at the Corporation Commission from being adopted. Remember, the voters overwhelmingly shut down the “Arizona Green New Deal”, Prop 127, just a couple of years ago. Unfortunately, the Commission effectively decided that was the “wrong decision” by the people and took it upon themselves to not only introduce the same rules, but took it a step further and by adding a 100% ban on carbon by 2050. You can read the legislation for yourself here.

Unfortunately, Senator Paul Boyer is the lone vote that is holding up the passage of HB2248. I would urge you all to contact Mr. Boyer: 602-926-4173 or pboyer@azleg.gov and express your concerns about him holding up the legislature in taking ownership of this important issue.

Updates 4/5/2021

Last week was fairly uneventful at the Commission. The yearly “Summer Preparedness” meeting was held on Tuesday. Many of the utilities presented on how they plan to deal with the upcoming Arizona heat. Much of the content was repeated from the prior week’s meetings, but it was great to hear a consistent message and have an opportunity for the Commissioners to once more get any answers to questions they may have had.

I also had my first Critical Infrastructure meeting last week. This was a presentation from the Office of Energy Infrastructure Security at the Federal Energy Regulatory Commission (FERC). This presentation was regarding a recent notice of proposed rulemaking that was issued by FERC that would allow utilities to request incentives for certain types of “above and beyond” measures they may have taken with regards to cybersecurity. Of course, utilities are able to make as many improvements as they deem necessary, but if this rule were to be enacted, any money they spend on automated and continuous monitoring of cybersecurity related to federally regulated equipment, would be eligible to recoup the costs with a little bit of incentive (2%) for those ongoing costs. I know…a lot of you are going to ask “why don’t they do this already?” Well, it all comes down to money and equipment. Much of the grid in the utility infrastructure is outdated and difficult to protect because of the age. The companies must spend a lot of money and time to do the updates, hence the reason we are now discussing an additional incentive. If you have any feedback I would love to hear it.

This is all I have for this week. As always, please make sure you sign my petition and donate a bit of seed money at www.nickmyers.us.

Thank you and God bless!

Nick

ACC Updates 3/29/2021

Happy Monday Everyone!

Last week we had the monthly open meeting. It was packed with agenda items and not all of them were addressed in the allotted time. Those items will roll over to next month. The same thing happened with the staff meeting that traditionally follows the open meeting. All but one of those items will also be rolled to the next month.

The consent agenda had numerous items, of which a few were pulled and added to the regular agenda so they could be discussed, or held until a future date. Commissioner Olson’s office had particular issue with one item where Coronado Utilities (service sewer service) and Arizona Water Company (water service) were requesting a waiver from the rules to allow communications between the two companies so the sewer company could collect on unpaid balances owed to them. While it is not unusual in AZ for a sewer company to work with the local water company to shut off water in the event of an unpaid sewer bill (assuming the Commission grants them a waiver from the rule), this proposal did not have any mechanism in place to protect the interested parties in the case where the person paying the water bill was not the same person that was paying the sewer bill. For example a landlord that may have taken over a water bill when the tenant moves out (to protect their yard plants, for example) but the tenant didn’t pay their sewer. Ultimately this item was not voted on, and will be brought up again next month after the utilities have discussed a reasonable way to address this type situation.

Another big discussion was the Arizona Water Company rate case. The reason this was a big deal was because the Commission initially failed to come to an agreement on the rate case after arguing the terms. This is a problem is because, as I have been saying, the commission has ONE CONSTITUTIONAL DUTY, and that is to set just and reasonable rates. Not accepting a rate case that was properly argued and hashed out in front of the judge, is not fulfilling the Commission’s constitutional responsibilities. While nobody wants rates to increase, utilities are allowed to recoup certain costs legally, which means that the commissioners don’t have to like all of the terms of the rate case, but they need to address those terms individually and come to an agreement that approves the rates as a whole. This did not initially happen. The problem is, the legal team interpreted the rules differently than Commissioner Olson. The Commissioner was correct in that the Commissioners can bring another motion to the table with amendments to address the concerns they have. Ultimately, this is what happened, and while nobody liked the solution 100%, at least enough of the Democrats and Republicans could agree to get the rate case passed, thus doing their job.

There were other items addressed in the meeting, but many of them were uneventful. If there are any specific questions, please reach out and I would be happy to discuss those with you.

The staff meeting only had one item addressed, the Line Sighting Committee. This committee is made up of individuals from different walks of life and represent different interests in the community. These appointments are made by the Commission and are effective for two years. The committee addresses environmental and other factors regarding the placement of energy transmission lines, and makes recommendations to the commission regarding approval/denial of the specific placements being requested by the utilities.

The newest member of the committee to represent the counties is Mr. Rick Grinnell. Additionally, Jack Haenichen, Mary Hamway, Patricia Noland, Jim Palmer, and Karl Gentles were all reappointed for another 2 year term. Congratulations to each of those individuals.

This week is a bit slow at the ACC. However, tomorrow is the annual “Summer Preparedness Meeting”. You are free to watch at www.azcc.gov/live if you are inclined. The utilities will be discussing how they are prepared, and what they are planning to do make sure they are prepared for this summer’s Arizona heat. As you can imagine, this is a tough time for all utilities, and the Commission wants to know about any foreseen problems that need addressing sooner than later. All of the utilities will be presenting tomorrow, so please check it out. If you have any questions or comments, you can always ask them to the utilities by filing a letter to the docket as well. This isn’t just for Commissioners, it is for all utility customers, so feel free to get involved! If you have any questions about how to do this, please don’t hesitate to ask, I would be happy to help you through the process!

Have a great week!

Nick

Campaign Update 3/22/21

I want to say thank you to all of the wonderful people that are supporting the campaign so far. We are getting lots of “seed money” donations, handfuls of petition pages with signatures on them, and everywhere I turn, we have support building. It is almost overwhelming, and I love it! So Thank you everyone!

With that said, we do have a long road to travel, so we must keep the momentum going. While I have not yet counted signatures, I did calculate that between March and August, it would require 2,500 signatures per month in order to hit our goal of 15,000 by August. That is a lofty goal, but definitely attainable if we continue building this momentum.

If you have not already checked out the ACC updates for this week, please see here: https://nickmyers.us/acc-updates-3-22-21/.

Finally, a constituent pointed out that website was indicating that it was not secure. While it technically is secure, the reporting was not correct. That has been fixed. If you see any issues, please let me know.

As always, please feel free to reach out if you have any questions about the campaign or the ACC. I love hearing from you!

Have a great week!

Nick

AZCC Updates 3/22/21

I was forwarded an email containing a write-up on a specific point made at the IRP meeting last week at the Commission. Mr. Wannamaker did a great job explaining the point and the importance of contacting the commissioners NOW regarding the upcoming energy rules. You can find PDF copy of his article HERE.

This week we have our regular monthly open meeting. As described last week:

“This agenda has a lot of items on it and promises to be a lot of stuff going on. If you only watch one meeting, this monthly meeting is the one to pay attention to. The consent agenda consists of the first 19 items, but you can expect the commissioners to pull a few of those items for further discussion. On that list are things like granting CC&N’s for new telecommunications services, approvals of surcharges, and some net metering tariff adjustments. Items 20 through 29 are regular agenda items and contain some updates (EPCOR/Johnson Utilities), Rate modifications for various aspects of service (Arizona Water Company, APS, TEP) and some Commission related discussion topics such as electric disconnect rules, the PFAS water contamination issue in the West Valley, rate case modifications for small utilities, and potential changes to the code of ethics.

It’s worth noting that most, of these items on the agenda have an opportunity for public comment. If you desire, please feel free to call in and express your opinions. The call information can be found on the agendas at the link below.

All of these agendas, times, and links to watch online can be found at www.azcc.gov/live.”

After the open meeting is typically a staff meeting and this week is no exception. The agenda for the staff meeting can also be found at the link above. This meeting typically doesn’t have any public comment, but is open for the public to listen in. Normally, the Commissioners use this meeting to direct the rest of the commission and get status/feedback from them. If you want a little insight in the inner workings of the AZCC, this meeting is for you.

On Thursday (March 25th, 2021) at 5:45pm, Commissioner Tovar is hosting a Virtual Town Hall for residents in the West Valley to discuss issues regarding the bottled water advisory from Luke Air Force Base.

Finally, there will also be some telephonic hearings for Liberty Utilities and Johnson Utilities regarding the rate cases.

Next week, on Tuesday March 30th, 2021, is the summer preparedness meeting. This is an opportunity for the Commission and the Utilities to make sure everyone is ready for the summer.

Also next week are a few telephonic hearing where, again, you can get information on what is happening with your utilities. In the upcoming hearings will be Arcadian Infracom 1, LLC, Quail Creek Water Co., Inc., Epcor Water Arizona Inc., and Global Water – Santa Cruz Water Company, Inc.

Have a great week everyone!

What is Seed Money?

People have asked more than once, so I thought I would create a page to explain. What exactly is “Seed Money” for Clean Elections Candidates?

Since Clean Elections candidates don’t receive funding to run their campaigns until very late in the process, combined with the restriction on only being able to put on a relatively small amount of their own capital, there needed to be a mechanism to allow these candidates a way to get the word out about their campaign, collect signatures and ultimately collect $5 donations. A mechanism called “early contributions” was created to allow the candidate a way to “seed” their campaign legally (hence the colloquial term “seed money”). Effectively, this is how Clean Candidates are able to do things like print their nomination papers, purchase booth space at events, print signs/banners for dressing up their event tables, gas money to get to LD meetings (or anywhere else in the state as my case may be), etc. Many people often ask, “Why can’t you just use your own money for that stuff?” The answer is we do! Unfortunately, we are only allowed to use a maximum of $1500 of our own money by law. So while it gets us a ways into the process, it’s definitely not enough. There are limits on seed money donations. They can only come from individuals (so don’t use your company credit card when donating online), they cannot come from political PACs or anything other than an individual, and not even a $1 donation from you own LD or Republican Club can be accepted. There is an individual contribution limit of $170 from any individual, in total, for a given campaign cycle (you can donate more than once, as long as the combined amount is <=$170) and the candidate my only collect up to about $29,000 in seed money in total. Any seed money left at the end (if any) can be used towards signs and the like, just like the funded money. So it is also a mechanism to get a minor “leg up” on opponents if the candidate is able to max out the number of contributions. Finally, it is important to note that seed money is different and separate from the $5 “qualifying contributions”. Those $5’s cannot be collected until 1 year before the elections (August of this year) and the campaign does not get to use that money at all. Those donations are simply a “counting mechanism” for the powers-that-be too verify that the candidate should get the funding. All of those dollars must be turning in and cannot be used by the campaign, not even as a “loan”. Now, if you are still reading this, THANK YOU! Please visit www.nickmyers.com/support to see how you can help out my campaign, and of course, don’t forget to sign the petition while you are there please! As you can see, every small donation can make a huge impact on a Clean Candidate’s campaign, and the success of that campaign really does depend on the direct generosity of people like you! Thanks again everyone!

ENDORSED BY COMMISSIONER O’CONNOR!

In this weeks campaign update, I am proud to announce an endorsement by current Commissioner Jim O’Connor! His letter is below:

Blessings to my fellow Arizona Patriots,

Your AZ Corporation Commission needs your continuing attention and support. We are off to a strong start in 2021 with Republicans controlling the Commission. In 2022 we will have two Commission seats up for election and I am leading the effort early to focus on getting two strong Constitutional “We the People” Conservatives to join us on the Commission.

One of the most outstanding Republican Candidates running in the 2020 Republican Primary for Corporation Commission was Nick Myers. A homeowner in San Tan Valley, Nick represented his neighbors in their five-year battle for safe drinking water with Johnson Utilities. Nick has been standing up for his fellow homeowners as a volunteer for years.

Nick was a big part in my successful write-in campaign last summer and ultimate victory in November’s general election. He spoke at many meetings when I was unable to be at two places at the same time.  Since then, he has been serving as Commissioner Justin Olson’s policy advisor at the Commission. His on-the-job training for this position has already begun. You will be meeting him again as the campaign begins formally later this year. But for now, I ask you to visit his website: http://www.nickmyers.us.

Once there please take immediate action by clicking on Sign Nominating Petition link to the Secretary of State’s website to sign Nick’s petition online. Then click on Donate Seed Money link to contribute any amount online.

You will want this fine man to join Justin, Lea and me voting your values here on the Commission. Nick will be running under Clean Election rules and will be coming to us again in August to collect his $5.00 contributions from one and all.

Commission Update 3/15/21

It’s a busy week this week at the Commission. Today (March 15, 2021) is the Integrated Resource Planning (IRP) workshop. This is essentially a meeting to have major electric utilities and stakeholders present how they are handling the integration of their resources going into the future. What they are planning and how they plan to get there (to a small degree) will be discussed.

Then on Thursday (March 18, 2021) we have an Energy Reliability Summit. This spawned from the recent energy issues in Texas. It is designed to have our local state utilities give an update and a chance for the Commissioners and Staff to ask questions. We want to make sure AZ isn’t susceptible to the same type of issues, and won’t be massively impacted by other states issues going forward.

Friday (March 19, 2021) is a meeting discussing appointments to the line sighting committee. This is essentially interviewing the candidates to fill the open position and voting on who should fill the seat. This will likely be entirely an executive meeting and won’t have much interesting content.

Then next Tuesday and Wednesday is the monthly Open Meeting. This agenda has a lot of items on it and promises to be a lot of stuff going on. If you only watch one meeting, this monthly meeting is the one to pay attention to. The consent agenda consists of the first 19 items, but you can expect the commissioners to pull a few of those items for further discussion. On that list are things like granting CC&N’s for new telecommunications services, approvals of surcharges, and some net metering tariff adjustments. Items 20 through 29 are regular agenda items and contain some updates (EPCOR/Johnson Utilities), Rate modifications for various aspects of service (Arizona Water Company, APS, TEP) and some Commission related discussion topics such as electric disconnect rules, the PFAS water contamination issue in the west valley, rate case modifications for small utilities, and potential changes to the code of ethics.

It’s worth noting that most, of these items on the agenda have an opportunity for public comment. If you desire, please feel free to call in and express your opinions. The call information can be found on the agendas at the link below.

All of these agendas, times, and links to watch online can be found at www.azcc.gov/live.

Enjoy!