by Staff Reporter | Jun 4, 2026 | News
By Staff Reporter |
Arizona’s public utilities governing body is exploring its options for legal action against Attorney General Kris Mayes.
The Arizona Corporation Commission (ACC) accused Mayes of illegally impeding its ratemaking authority for political gain. Mayes is running for reelection. Although she has no primary candidates, she will either have to face off against one of two Republicans: Arizona Senate President Warren Petersen (R-LD14) or Air Force reservist prosecutor Rodney Glassman.
As part of a commission press release sent out on Monday, ACC Chairman Nick Myers issued a statement saying the ACC had to “force” Mayes to fulfill her attorney general duties toward the commission.
“She was unlawfully pocket vetoing our commission ratemaking authority by delaying the process pertaining to the repeal of the natural gas subsidies,” said Myers.
Myers also accused Mayes of “play[ing] politics,” naming Mayes’ disapproval of the ACC’s appeal of the Renewable Energy Standard and Tariff (REST) rules. The ACC submitted that appeal and one other for the Gas Utility Energy Efficiency Standard (Gas EE) rules to Mayes’ office for review.
“These costly mandates forced Arizona ratepayers to pay almost $4 billion more than they should have over the last 20 years,” said Myers. “The commission will continue to protect the ratepayers and will not allow the Attorney General to arbitrarily increase rates against the decision of the commission.”
In 2006, the ACC gave utility companies a new mandate through the establishment of the REST rules: generate 15 percent of their energy from renewable resources by 2025, and submit annual implementation plans describing compliance. Mayes was on the commission at the time.
The ACC unanimously voted to repeal the REST rules in March, citing in part a $2.3 billion financial burden for compliance passed on to customers through surcharges.
The ACC said in its most recent press release that Mayes had gone beyond her statutory authority — which they described as ministerial — since she had conducted a substantive review of ACC’s ratemaking rules authority. ACC contends their ratemaking rules authority is constitutionally exclusive and leaves no room for interpretation by the attorney general.
In her denial of the ACC appeal, Mayes claimed in a letter to the commission that it had violated its own rulemaking procedures. The commission denied this assessment and accused Mayes of vetoing rulemaking based on policy disagreement.
Mayes approved those impacted rules which mandated renewable energies while she was on the ACC.
The ACC called these “unnecessary subsidies,” and claimed Mayes’ denial of the rule appeal was a cover for her alleged ulterior motive: preventing the ACC from undoing her work to push renewables.
“As a commissioner, Kris Mayes voted for these expensive subsidies that have cost ratepayers billions of dollars,” said Commissioner Kevin Thompson. “It is an abuse of her position as Attorney General to use the ministerial rule approval process to substantively veto our lawfully enacted ratemaking rule repeal. Every day that goes by, she is responsible for increasing costs on ratepayers.”
This is the latest development in an ongoing power struggle between Mayes and the ACC.
Back in 2024, Mayes sued the ACC over its decision to reverse a Power Plant and Transmission Line Siting Committee order regarding environmental oversight for a UniSource Energy power plant project. A superior court judge ruled against the ACC last October.
And in April, Mayes hit the ACC with three rehearing requests for three different alleged issues.
Mayes spokesman Richie Taylor told the Arizona Capitol Times that Mayes had to take on ACC responsibilities because the ACC was giving “sweetheart deals” to data centers while raising utility rates on senior citizens.
“Chairman Myers should focus on fulfilling the constitutional obligations of the Commission on behalf of Arizonans so the Attorney General doesn’t have to step in and do it for them,” said Taylor.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Matthew Holloway | Apr 13, 2026 | News
By Matthew Holloway |
The Arizona Corporation Commission approved a temporary bill credit for UNS Electric customers, expected to reduce monthly costs during peak summer usage.
According to a Wednesday press release, the Commission approved an $18.50 monthly credit for customers with average usage of 884 kilowatt-hours. The credit will be in effect from May 1, 2026, through December 31, 2026. The measure was approved in a 5–0 vote during the Commission’s open meeting on April 8.
The adjustment is tied to the Purchased Power and Fuel Adjustment Clause (PPFAC), a mechanism which utilities use to recover fuel and purchased power costs. The Commission stated that utilities do not earn a profit on expenses recovered through the PPFAC.
Commissioner Kevin Thompson said in the release that the credit follows the Commission’s earlier action to address a significant under-collection in the PPFAC balance.
In May 2023, the Commission approved a temporary surcharge to reduce the balance, which was accruing interest costs that were being passed on to ratepayers.
“The Commission had to make a tough vote in 2023 to pay down significant fuel cost debt that had been allowed to build as a result of circumstances outside the utilities’ control,” Thompson said. “As a result of the temporary surcharge, UNS was able to rapidly pay down the debt and save ratepayers money in the long run. Asking ratepayers to pay more in their monthly bills to pay down costs is never an easy task, but this solution removes the massive debt hanging over the heads of the ratepayers and provides additional bill relief when customers need it most.”
The surcharge was eliminated in December 2025 after the balance was paid down. The Commission said that the change reduced the average residential customer’s bill by approximately $20 per month.
Following the removal of the surcharge, the utility reported a positive PPFAC balance of $5.6 million in mid-February 2026, which has continued to grow.
According to the release, UNS Electric began experiencing under-collection in October 2021, which grew to approximately $48 million. The deficit was attributed to increased natural gas prices during the COVID-19 pandemic, extreme weather events including Winter Storm Uri, and global energy market impacts related to the Russian invasion of Ukraine.
“As we are approaching the summer heat, I am glad the Commission was able to provide some rate relief for customers in Kingman, Lake Havasu, Nogales, and other smaller communities in Mohave and Santa Cruz counties,” Chairman Nick Myers said in a statement.
With the new temporary credit in place, the Commission said a typical residential customer is expected to see an average monthly reduction of approximately $38 this summer compared to the same period last year.
“As regulators we often have to make difficult decisions as we balance the various interests involved in ratemaking,” Myers said. “In this case, I am pleased that our difficult decision to address the PPFAC in 2023 has resolved the problem and resulted in a meaningful reduction in rates for UNSE customers through the end of the year.”
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.
by Staff Reporter | Mar 8, 2026 | News
By Staff Reporter |
A retirement community in Eloy had its water rates raised significantly through a recent Arizona Corporation Commission (ACC) vote.
The ACC approved the rate increases narrowly, 3-2, during its meeting on Wednesday. Commissioners Kevin Thompson and Lea Marquez Peterson voted against the rate increases.
Marquez Peterson said the utility companies should have done more to conduct public outreach prior to engaging in the rate increase process.
“We received many public comments concerning the dramatic rate increase though an increase was certainly expected from a utility who hadn’t filed a rate case in over 25 years. I believe that more could have been done to promote gradualism in the sewer rate case,” said Marquez Peterson.
Picacho Water and Picacho Sewer Company serve the retirement community Robson Ranch, located south of Casa Grande. The community has historically enjoyed low water and sewer rates due mainly to subsidization from the developer behind the community, Robson Companies. The developer absorbed the cost of increased expenses rather than pass them onto the residents.
The rate increases would result in increases of just shy of $7 for water and $65 for sewer, for a combined increase of about $76. No rate changes have occurred since the 1990s. For years, residents paid an average of about $30 per month for water and $42 per month for sewer services.
ACC declined to impose a phased increase of rates.
Commissioner Thompson said that was where the rate increase plan lost his vote.
“For decades, the developer chose to operate the water utility at a loss. No one disputes that the new owner is entitled to recover lost revenues and earn a reasonable profit on those investments,” said Thompson. “But rate increases should adhere to principles of gradualism, and as a regulator, I felt I had a duty to advocate for a resolution that strikes an appropriate balance between all parties and not subject these ratepayers to the consequences of business decisions that were no fault of their own.”
The decision to adjust utility rates after nearly 30 years came after another company, JW Water, acquired both companies from Robson Companies in 2024.
Robson Ranch residents spoke out against the rate increases during Wednesday’s meeting. They accused JW Water of seeking to maximize shareholder return.
The residents also blamed Robson Companies for covering increased expenses rather than passing the cost along to the customers. Residents said they had no knowledge their rates were being subsidized all those years; they said low rates were marketed as a perk of buying within the community.
Jay Shapiro, speaking on behalf of Picacho Water and Picacho Sewer during the meeting, said the rate case was “difficult for everybody involved” and that no one would be happy with the final results.
Shapiro denied exploitation of customers. He argued the longstanding rates were no longer recovering the cost of service. He said the rates were “just and reasonable,” and not a result of “price gouging” to benefit foreign investors. Shapiro accused critics of the rate increases of conducting a smear campaign.
“Rate shock was inevitable — rate shock sure sucks,” said Shapiro. “It’s an unintended consequence of some rate filings.”
Chairman Nick Myers agreed with JW Water that these rate increases were a necessity for services provided, not a means of making up for lost profits.
“Though I personally would prefer not to approve rate increases, we have a constitutional duty as Commissioners to set just and reasonable rates,” said Myers.
Vice Chair Rachel Walden concurred.
“JW Water is NOT recovering revenue losses over the course of the past 25+ years, nor are they recovering the purchase price of the utilities,” said Walden. “This rate case is ONLY about setting rates to cover the cost of service. I put forth a verbal amendment that was supported in full to ensure that future growth will pay for itself.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Matthew Holloway | Dec 19, 2025 | Economy, News
By Matthew Holloway |
The Arizona Corporation Commission (ACC) and the North American Securities Administrators Association (NASAA) are cautioning investors to remain vigilant this Christmas season amid an increase in sophisticated fraud schemes.
Drawing on data from NASAA’s 2025 Enforcement Report and its annual survey of investor threats, the ACC identified a dozen types of scams that state securities regulators say investors should watch for as fraudsters employ new technology, including artificial intelligence (AI), to target victims.
According to NASAA’s report, state securities regulators conducted more than 8,800 active investigations in 2024, resulting in fines and restitution totaling over $259 million. The report found that while scammers increasingly use technological tools to make schemes appear legitimate, the underlying goal remains to separate victims from their money.
“The rapid growth of technology and the rise of artificial intelligence gives scam artists new tools to steal your money,” said NASAA President Marni Rock Gibson.
ACC Chair Kevin Thompson echoed Gibson, emphasizing the role of advancing technology in enabling fraud, saying in the release that AI and other tools give “scam artists new tools to steal your money,” and that many fraudulent investment pitches play on investors’ fears rather than genuine innovation.
“Fraudsters are pitching new investments that often have nothing to do with latest tech developments and instead play on the fear of missing out on the next ‘best thing,’” he explained.
The 12 investor threats outlined by the Commission’s Securities Division include:
- Affinity or “Pig Butchering” schemes — long-term romance-based cons that build trust before prompting victims to invest in bogus platforms.
- Deepfake impersonations — use of AI-generated video and voice clones of celebrities or contacts to solicit funds.
- Phantom AI trading bots — fraudulent algorithms marketed as guaranteed return systems.
- Digital asset and crypto fraud — scams involving unregistered securities and exaggerated return promises.
- Fake AI equity pitches — sales of equity in fictitious AI companies or “pump and dump” schemes.
- Social media lures — investment scams originating on platforms such as Facebook or X.
- Short-form video hype — slick social media clips touting “get rich quick” opportunities.
- Text and WhatsApp traps — unsolicited messages that pivot into fraudulent investment offers.
- Targeting older investors — senior citizens are disproportionately targeted with both traditional and digital scams.
- Account takeovers — phishing and AI-assisted hacks that seize control of accounts to solicit funds from contacts.
- Website and app spoofing — cloned sites designed to harvest login credentials and funds.
- Unregistered solicitors — individuals selling investments without proper licensing; regulators opened 944 investigations in 2024 involving unregistered sellers.
The ACC’s Securities Division encourages investors to exercise skepticism, conduct independent due diligence, and contact a trusted third party before committing funds to any investment, the commission said, quipping they should review the list of threats and “check it twice to avoid ending up with a stocking full of coal.”
Investors looking to check the license status or disciplinary history of an investment promoter can contact the Securities Division’s Duty Officer at 602-542-0662 or SecuritiesDiv@azcc.gov, or visit azcc.gov/azinvestor for more information.
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.
by Jonathan Eberle | Dec 10, 2025 | News
By Jonathan Eberle |
The Arizona Corporation Commission recently approved an amendment from Chair Kevin Thompson that he claims cuts more than half of the Arizona Public Service Company’s proposed budget for demand-side management and energy-efficiency programs—removing roughly $51 million in annual surcharges that would have been passed on to ratepayers.
The vote comes as the Commission continues the process of repealing a 2010 energy-efficiency mandate that has driven more than $1 billion in cumulative surcharges on customer bills over the past 15 years. Those surcharges have funded utility-run programs intended to reduce energy consumption and defer the need for new power generation.
APS’ amended 2025 Demand Side Management (DSM) and Energy Efficiency (EE) plan sought $90.9 million—an increase from the $79.4 million approved in 2022. Commissioners unanimously rejected APS’ proposed funding increases for several existing and new programs. Thompson said the cuts were necessary to rein in programs that had expanded far beyond their original purpose.
“I support energy efficiency and demand side management programs that reduce the need for additional generation and lower the costs for all ratepayers,” Thompson said. “But APS’ annual budget for these programs had become a bloated Christmas tree of incentives and rebates for special interests and customers who should be paying for these upgrades on their own.”
According to Thompson, previous Commissions allowed the DSM/EE program to grow beyond its intended goals, resulting in programs that offered rebates for equipment ranging from horticulture fans and livestock ventilation systems to incentives for electric golf carts, off-road utility vehicles, EV charging stations in multifamily buildings, and advanced power strips. The Commission also ended a long-standing practice of providing incentives to home builders and contractors for installing energy-efficient appliances—upgrades already mandated elsewhere in state law.
APS had also proposed new incentives for builders, including a $1,000 rebate per home for installing ENERGY STAR NextGen-certified systems requiring connected heat pumps, water heaters, and smart thermostats. The company had additionally sought to increase its “EV-ready home” incentive from $100 to $200. All of those proposals were rejected.
With Thompson’s amendment, the budget was cut by more than 50%. The approved spending plan now focuses on what commissioners described as core, ratepayer-benefiting programs. Thompson said the revised plan maintains assistance for vulnerable Arizonans while delivering broad relief to all APS customers through lower surcharges.
“We have accomplished a major course correction,” he said, “one that will save APS ratepayers more than $50 million in annual costs while preserving programs that truly help the most vulnerable members of our society.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
