News Release

Phoenix, Ariz. — The Arizona Corporation Commissioners voted on 8 matters, including electric and water utilities items. Highlights from the meeting include:

• $170 Million in Financing for Energy Modernization and Capital Projects Approved for AEPCO
• Hearing Ordered on Changes for Future Rooftop Solar Customers
• Sun Valley Farms: Rate Case and Well Rehab Update
• 5-Year Review of the Corporations Division Administrative Rules

$170 Million in Financing for Energy Modernization and Capital Projects Approved for AEPCO

Arizona Electric Power Cooperative, Inc. (AEPCO), a not-for-profit electric generation and transmission service, filed for interim and long-term debt financing up to $170 million. The funding, sought from the National Rural Utilities Cooperative Finance Corporation and CoBank, aims to bridge the gap until long-term financing is secured.

The requested capital will be allocated to construct a 180MW natural gas generation facility. This endeavor aligns with AEPCO's objectives of integrating renewable energy, increasing reserve margins, and replacing aging units. The project is designed to modernize AEPCO's energy portfolio and enhance service efficiency for its six-member distribution cooperatives, five of which are based in Arizona.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at edocket.azcc.gov and entering docket number E-01773A-23-0203

Hearing Ordered on Changes for Future Rooftop Solar Customers

The Commission instructed the hearing division to open a miscellaneous docket to explore possible changes to the annual 10% RCP rate reduction cap and the 10-year lock-in period for future rooftop solar customers. The aim is not to reopen discussions on the overall value of solar, but solely to address these two specific issues for future customers. The Commission requested an expedited hearing schedule and expressly excluded cooperatives from the future proceedings per their request.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at edocket.azcc.gov and entering docket number E-00000J-14-0023

Sun Valley Farms: Rate Case and Well Rehab Update

At the September 21 meeting, the Commissioners probed Sun Valley Farms' preparedness for a year-end rate case submission, while Staff committed to deeper scrutiny and secured municipal backing for the company.

Following this, the Commission ordered a reassessment of storage needs once the well is operational, a postponement of well casing liner documentation until additional financing is obtained, and an extension of the rate case deadline to December 31, 2023.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at edocket.azcc.gov and entering docket numbers W-02425A-19-0186 and W-02425A-19-0189

5-Year Review of the Corporations Division Administrative Rules

In Decision No. 78544 on April 28, 2022, the Commission established a Rules Review Procedure (RRP) mandating a five-year review of all its rules to assess the need for amendments or repeals. Each Division must produce a 5-Year Rule Review Report in compliance with the RRP.

Corporations Division rules are categorized into two main sections: "In General" rules, which have been deemed outdated and unenforceable, and Corporate Naming Standards, which lack clarity in the context of current enforceable policies. The Commission directs a modernization and simplification of these rules, calling for stakeholder engagement to propose new, relevant guidelines. A primary objective set by the Commissioners is to combat business identity theft and fraud, issues that have led to numerous complaints.

Under current protocols, any filing that satisfies statutory requirements must be accepted; the Commission also orders looking into the implementation of ID verification and a nexus requirement for filers. Additionally, the Commission directs to update name distinguishability standards, originally established in the 1970s, to enable easier differentiation between entities.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at edocket.azcc.gov and entering docket number AC-00000A-22-0284