Corporation Commission Issues Southwest Gas $2 Million Penalty For Gas Leak And Explosion

Corporation Commission Issues Southwest Gas $2 Million Penalty For Gas Leak And Explosion

By Matthew Holloway |

In a post-Election Day vote on Nov. 6th, the Arizona Corporation Commission (ACC) voted unanimously to approve a Consent Agreement between Southwest Gas Corporation (SWG) and the Arizona Corporation Commission Office of Pipeline Safety (AZOPS). The Commission slammed SWG with a $2,000,000 civil penalty stemming from two incidents in 2021 in Chandler and Scottsdale caused by degradation in pipelines, leaks, and explosions. The incident in Chandler saw an explosion that injured four people.

As reported by 12News, the explosion on August 26, 2021 that drew the attention of the ACC occurred near Ray and Rural Roads at a Chandler business and injured four people. The blast caused a complete structural failure of the building’s roof which subsequently collapsed and caused the evacuation of nearby homes. The explosion caused damage in excess of $5 million the outlet reported, citing public records.

In a press release, the ACC explained that it voted on Wednesday to impose a Consent Agreement between Southwest Gas Corporation (SWG) and the ACC, which proposes a resolution to the issues related to the Scottsdale and Chandler incidents.

The ACC explained its findings stating:

“AZOPS investigators concluded that pipe purchased by Southwest Gas degraded in high heat areas, leading to leaks, and possible explosions. The investigators further concluded that Southwest Gas failed to properly map where this type of pipe, referred to as Driscopipe polyethylene (PE) M7000 and M8000, was located and needed to increase leak patrols. The mapping errors lead to an incorrect understanding of where the potentially failing piping is located. Maintaining accurate records is mandated by law.

Southwest Gas accepted responsibility and agreed to pay $2,000,000 to the Commission as a civil penalty. As part of the agreement, Southwest Gas also must plan to replace or abandon all services with no active meter sets or stubs identified underground that contains the defective piping material.  Southwest Gas estimates there are more than 10,000 miles of M7000 and M8000 pipe installed throughout Arizona.”

Commissioner Kevin Thompson added an amendment that was approved as well that the Consent Agreement is not the final word on the matter “making it clear that enactment of the settlement does not constitute an approval or authorization by the Commission for recovering the costs of pipe replacement or costs associated with fulfilling the terms of the settlement in any upcoming rate case,” according to the release.

He said in a statement, “This matter has been before the Commission long enough and the approval of this settlement is a big step in the direction of maintaining public safety and holding the utility accountable.” He added, “I don’t believe customers should bear the entire responsibility for the mistakes of the manufacturer and their defective products, and I wish the utility would have pursued this path more aggressively when they had the chance.”

Speaking with Fox10 Phoenix, Tom Ryan, trial attorney for the explosion victims, Platinum Printing and the Ryan brothers, said, “It was a shock—a complete devastation. Metal was bent, doors were sent flying 200 feet. It was just an incredible, shocking sight. And I’m still amazed today—that as badly as they were burned—that he lived to tell about it.”

Southwest Gas has not sought legal action against the pipe manufacturer for defective product liability as of this report.

Fox10 reported that the new piping mandated under the Consent Agreement could impact thousands of businesses and homes across the Phoenix Metro area and will total in nearly 1,000 miles of replacement piping.

In a statement issued to AZFamily, a Southwest Gas spokesman wrote, “Southwest Gas worked closely with the Arizona Corporation Commission’s Office of Pipeline Safety during its investigation of the incidents in Scottsdale and Chandler to identify root causes and opportunities to enhance the safety, service, and reliability of our infrastructure in the State of Arizona. The Consent Agreement is the result of these efforts and ensures the insights gained from this process lead to positive change reflective of Southwest Gas’ continued commitment to safely deliver natural gas service for our customers and the communities we serve.”

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

Despite Billions In Federal Funding, Intel Layoffs In Arizona Will Cost Taxpayers Even More

Despite Billions In Federal Funding, Intel Layoffs In Arizona Will Cost Taxpayers Even More

By Matthew Holloway |

While the Biden-Harris administration is still boasting of the success of the CHIPS and Science Act, the Intel Corp. announced it will cut 15,000 jobs across the nation, “as part of the broad-based cost savings plan.” New reports show that almost four hundred of those job cuts will be at the company’s Ocotillo campus in Chandler.

As reported by Phoenix Business Journal, the series of layoff has come despite an upcoming injection of billions of taxpayer dollars via the CHIPS Act aimed at expanding the Chandler facility. Intel as a whole has approximately 12,000 employees in Arizona.

In a written statement Intel explained, “As part of the broad-based cost savings plan we announced in August, we are making the hard but necessary decisions to reduce the size of our workforce. These are the most difficult decisions we ever make, and we are treating people with care and respect. These changes support our strategy to become a leaner, simpler and more agile company as we position Intel for long-term sustainable growth.”

According to The Center Square, the office of Arizona’s Democrat Governor Katie Hobbs was quick to announce the mobilization of state taxpayer-funded resources being made available to the laid off Intel workers.

Spokesman Christian Slater told the outlet, “The Governor’s Office is already mobilizing rapid response resources at DES to connect affected workers with the resources they need to receive support and find new employment. Ensuring that every Arizonan has access to good-paying jobs is a top priority for Governor Hobbs, and she will continue bringing together workers and businesses to navigate challenges, create jobs and build an economy that helps every Arizonan thrive.”

In an August statement, Hobbs stressed Intel’s expansion in the state after the non-specific “cost savings plan,” was announced saying, “They’re expanding here. We’re thrilled to have their expansion here. We’re working with them on workforce initiatives to grow the skilled pipeline of workers that they need. We’re continuing to do that.”

Any direct mention of the billions of dollars earmarked for Intel via the CHIPS Act was decidedly absent from the Hobbs administration’s statement. However, a statement from the office of Senator Mark Kelly (D-AZ) doubled down on the multi-billion-dollar giveaway, which failed to prevent the layoffs.

Kelly’s office wrote that the round of layoffs, “further underscores the importance of the CHIPS Act.” His office added, “American companies like Intel are facing unprecedented competition from China, but thanks to the CHIPS Act, we’re making sure Intel, and other companies can manufacture the most advanced chips right here in America—creating thousands of construction jobs, and generating even more good-paying, permanent technician jobs in Chandler and across the state that don’t require a four-year degree.”

As reported by the New York Post in August, despite the passage of the CHIPS Act, Intel suffered a staggering $1.6 billion in losses, with CEO Pat Gelsinger saying, “Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate,” per the memo published to the firm’s website. “Our revenues have not grown as expected – and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low.”

When the initial announcement broke in August, Republican Senate candidate Kari Lake placed the blame for Intel’s problems squarely on the Biden-Harris administration in a post to X, writing, “For over 45 years, Arizona has been Intel’s U.S. manufacturing powerhouse. In the last job reports, Intel Shares plunged 20%, forcing them to lay off more than 15% of their employees. These are the devastating consequences #Bidenomics is having on our state. In the US Senate, I will work with President Trump to cut the deficit, turbocharge the economy, & bring back good jobs so that all companies both big & small can thrive in State 48.”

Intel’s CEO also noted that staff drawdowns through voluntary exits in September via “early retirement and separation offerings,” already had the company almost halfway to its 15k downsizing goal. But Gelsinger warned at the time, “We still have difficult decisions to make and will notify impacted employees in the middle of October.”

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

Willoughby Eyes Return To Arizona House To Continue Push For Parental Rights And Safe Communities

Willoughby Eyes Return To Arizona House To Continue Push For Parental Rights And Safe Communities

By Staff Reporter |

A Phoenix-area nurse and mother is key to Arizona Republicans’ chances to hang onto control of the state House of Representatives.

Julie Willoughby is running for the Arizona House of Representatives in Legislative District 13, covering several east valley communities. Willoughby is a first-time officeholder in the state legislature, having been appointed to serve in the chamber by the Maricopa County Board of Supervisors in May 2023.  She is a mother of two and an Emergency Room trauma nurse who also makes time to serve in her church.

On her campaign website, Willoughby makes the case for voters to return her to the state House for another term in office. She writes, “By asking for your vote, I am asking you to believe in me; to put your faith in me. So I think it’s important that I share my ‘Why.’ My husband Brice and I have two wonderful children. We are like many of you – a happy growing family living in the present but with a careful eye on the future. We moved our family to Chandler over 5 years ago because it offered everything we wanted for our family – lots of young active parents, safe communities, and plenty of parks all wrapped up in a lovely, family-friendly vibe. We were thrilled to be part of such a wonderful city!”

The Republican legislator continued, “Once we got settled in, we started considering the bigger questions. How do we ensure our family’s safety? How do we safeguard our access to the best possible education for our children? How do we protect our family business so that it continues to flourish and grow? These important questions and many others led Brice and I to a discussion about how we could become more vocal and involved. Always avid voters, we were keenly aware that every vote counts, but what about the things that don’t end up on a ballot? How can we raise our voice for ALL issues that impact our family and so many others?”

Willoughby added, “After much discussion, soul-searching and prayer, the answer was crystal clear to both of us – we would run for the legislature, to protect the future of our family and yours. Brice and I have no doubt that this is the path God had planned for us all along, and we couldn’t be more excited to enter this new chapter of public service.”

Since entering the legislature in May 2023, Willoughby has been extremely active and focused on solutions for the men and women she represents in the easy valley of the Phoenix-metro area. Last year, Willoughby announced that she had “spearheaded the expansion of the Arizona Resource Equity & Access Coordination Hub (AZ REACH), a pioneering program that facilitates the seamless transfer of medical patients, providing critical support to hospitals across the state.”

Willoughby’s release revealed that the AZ REACH Program “has been instrumental in facilitating the seamless transfer of over 4,000 patients, with an impressive acceptance rate exceeding 90 percent,” adding that “the program streamlines the transfer process by facilitating calls for placement, connecting practitioners, and following through on placement progress, allowing referring facility team members to focus on care.” AZ REACH started in December 2022.

In a statement about this positive development, Representative Willoughby said, “As a nurse, I know that the AZ REACH program helps save practitioners time and patients’ lives. With the introduction of AZ STEP, we are taking a monumental step towards improving patient care, throughput, and access to specialty services, particularly in our smaller rural hospitals. During peak times, it’s imperative that clinical staff can focus on patients’ needs without being burdened by transfer logistics. AZ STEP will bridge this gap further, ensuring patients receive the care they require.”

The freshman lawmaker also issued a press release in September 2023 to announce that she had secured $2.25 million in the state budget “intended to support the efforts of the Chandler Police Department in their fight against Internet Crimes Against Children (ICAC).” The release informed readers that the funding would “empower law enforcement to employ cutting-edge technology and enhance critical investigative capabilities in their pursuit of justice,” adding that the support would “combat heinous offenses that not only impact our state but resonate across the nation.”

In a statement accompanying her announcement about ICAC, Willoughby said, “Backing those dedicated to upholding the safety and security of our community, and especially our children, is a cornerstone of my commitment as a state representative. This funding will equip the Chandler Police Department with advanced technology and resources dedicated to combatting Internet Crimes Against Children and other high priority criminal cases, safeguarding our communities and preserving the innocence of our youth. By investing in this critical area, we are taking a significant step forward in ensuring a safer Arizona for all.”

Earlier this year, Willoughby sponsored HB 2183, which would have “entitle[d] parents with the right to receive from a healthcare entity equivalent access to any electronic portal or other healthcare delivery platform for their minor child.” According to Willoughby’s press release, her bill would have increased the protections afforded to parents in the Arizona parents’ bill of rights by “guaranteeing parents’ equal access to healthcare delivery platforms like online medical portals to care for their minor children.”

Unfortunately for parental rights in Arizona, Democrat Governor Katie Hobbs vetoed the proposal when it reached her desk, writing, “The measure as written could put the health and safety of vulnerable Arizonans at risk.”

Willoughby was greatly disappointed by the governor’s action. After the veto, she said, “I am deeply dismayed by Governor Hobbs’ decision to veto HB 2183. This was important legislation designed to assist Arizona families, particularly those with children suffering from chronic diseases, access vital medical records, which are often required for arranging specialty follow-up appointments, surgeries, or consultations with out-of-state specialists. The governor’s veto means that families will continue to face unnecessary hurdles in obtaining the critical information they need, precisely when they need it most, especially during urgent health crises. This decision not only undermines the welfare of vulnerable families but also impedes their access to necessary healthcare information.”

According to the Arizona Independent Redistricting Commission, Legislative District 13 is one of the most competitive in the state, with a 1.6% vote spread between Republicans and Democrats in the past nine statewide elections. In those contests, Republicans have won five times, compared to four for Democrats.

Willoughby is running alongside former legislator Jeff Weninger for the two seats in the Arizona House of Representatives in the district. The two Republicans are facing off against Democrats Nicholas Gonzales and Brandy Reese in November’s General Election in what figures to be an exciting showdown for the right to represent the constituents of Legislative District 13.

AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.

Weninger Plans To Champion Small Business And Lower Taxes In Arizona House

Weninger Plans To Champion Small Business And Lower Taxes In Arizona House

By Staff Reporter |

A small business champion could be on his way back to the Arizona Legislature for the upcoming session.

Former State Representative Jeff Weninger is running for the same position in the November General Election for Arizona Legislative District 13. He previously served in the Arizona House of Representatives from 2015 to 2023.

Legislative District 13 covers parts of Chandler, Gilbert, and Sun Lakes.

After a brief hiatus from public service, Weninger decided that it was time for him to return to the legislature. He announced his candidacy for state House on July 27, 2023, in an email to supporters. In that email, Weninger wrote, “Over the last year I moved my son to college, helped my daughter start high school, dedicated more time to my small business, and continued to invest in our community. Personally, things are going really well. Unfortunately not every Arizonan feels the same way. Inflation and prices are climbing, energy costs are higher than ever, and parents are struggling with decisions on the best educational environment for their kids.”

Weninger added, “When I served in the Legislature, I fought to lower your taxes, keep our cost of living affordable, support our first responders, and make Arizona one of the most business-friendly states in the country. I’m excited to announce that I’m running for State Representative in the new Legislative District 13 to bring those same values and principles to the Capitol.”

Business organizations around the state know Weninger and trust his expertise and record in office as evidenced by the support he’s received for his campaign during this go-around. Earlier this summer, the Arizona PAC for the National Federation of Independent Businesses endorsed Weninger’s bid for election.

Back in 2022, Weninger was awarded with the organization’s Guardian of Small Business recognition. Chad Heinrich, the Arizona state director for NFIB AZ, said, “Representative Weninger is one of few small-business owners who dedicate the time needed away from his business to also serve effectively in the State Legislature. In 2022, he sponsored a key reform to the business personal property tax that will unleash untold amounts of business investment in Arizona through the simplification and reduction of this burdensome tax. He’s built a solid reputation in the State Legislature as being on the cutting edge of technology and has worked effectively to keep Arizona’s policies attractive to industry and innovators.”

The Greater Phoenix Chamber PAC also endorsed Weninger. Chamber PAC Chair John Moody stated, “It is absolutely critical we support and help elect lawmakers who understand the issues impacting the success of businesses and who will work collaboratively to advance and protect policies supporting our Arizona businesses. This will allow for a prosperous economy in the Greater Phoenix region and throughout the state of Arizona.”

In June, the Arizona Chamber of Commerce & Industry endorsed Weninger as well. President and CEO Danny Seiden said, “The Chamber is proud to endorse a bipartisan slate of candidates who will be strong champions for job-creating policies that will drive economic growth and further advance Arizona’s competitive position on the global stage.”

It’s not just business organizations that have lined up behind Weninger. The Arizona Troopers Association endorsed him back in June. According to the group, Weninger (and other officials and candidates) were selected “based on their support of Arizona law enforcement and the men and women of the Department of Public Safety.”

On the flip side, Secular AZ, a left-wing organization, gave Weninger a zero percent legislative score for the 2022 session – his last in the Arizona House of Representatives. Out of 22 votes scored by the group, Weninger voted the “wrong” way all 22 times. This organization, per its website, “represent[s] the Arizona nontheistic community – a vibrant and growing community of Arizonans who self-identify as atheists, agnostics, humanists, freethinkers, ‘nones,’ and other labels of personal choosing.”

Arizona Legislative District 13 is one of the most competitive in the state, so Weninger will have his work cut out for him in the General Election. According to the Arizona Independent Redistricting Commission, the district has a 1.6% vote spread over the past nine statewide elections. Out of those races, Republicans have won five times, compared to four for Democrats in the district.

Weninger is running alongside fellow Republican Julie Willoughby for the two House seats up for grabs in Legislative District 13. Both candidates were unchallenged in the primary. In unofficial results reported as of Wednesday morning, Weninger had received 16,631 votes, and Willoughby had garnered 15,931 votes.

The two Republicans will face off against Democrats Nicholas Gonzales and Brandy Reese, who were also unchallenged in their primary. Reese had received 11,901 votes, and Gonzales had obtained 11,576 votes. Shante Saulsberry previously withdrew from the race. Additionally, Cody Hannah is a Green Party candidate for State Representative.

Currently, the district is represented by Willoughby and Democrat Jennifer Pawlik in the state House. J.D. Mesnard, a Republican, represents the district in the state Senate.

AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.

These Four Arizona Cities Have Least Financial Distress

These Four Arizona Cities Have Least Financial Distress

By Elizabeth Troutman |

Four Arizona cities made it onto a list of America’s least financially distressed cities. 

Last month, WalletHub released the results of their comparison of the 100 largest cities without data limitations across nine key metrics. The personal-finance website determined cities are the most and least financially distressed in light of inflation making it more difficult for Americans to keep up with payments on their loans and lines of credit.

Glendale was 92nd on the list, followed by Chandler at 97, Gilbert at 98, and Scottsdale at 99. 

“Getting out of the downward spiral of financial distress is no easy feat,”  WalletHub Analyst Cassandra Happe said in a news release. “You may get temporary relief from your lenders by not having to make payments, but all the while interest will keep building up, making the debt even harder to pay off.”

“People who find themselves in financial distress should budget carefully, cut non-essential expenses, and pursue strategies like debt consolidation or debt management to get their situation under control,” she continued. 

Chicago, Illinois was the city with the most financial stress.

“It seems that in the Windy City, people’s financial security is also blowing away,” Happe said. “The share of Chicago residents who are allowed to skip debt payments due to financial difficulties went up by nearly 30% between Q4 2022 and Q4 2023.”

Additionally, Chicago residents had the third-most accounts in distress per person, according to Happe.

“Financial distress may increase further, too, as Chicago has some of the highest Google search interest in the country for terms like ‘debt’ and ‘loans,’ which indicates that people need to borrow even more,” she said. 

After Chicago, Houston, Texas had the second most financial stress, followed by New York City, Los Angeles, Dallas, Las Vegas, San Antonio, Atlanta, Riverside, and Jacksonville. 

Elizabeth Troutman is a reporter for AZ Free News. You can send her news tips using this link.