News Release      
  For Immediate Release | 5-22-18      
  Media Contact | Nick Debus      
  Direct | 602-542-0728      
  E-Mail |      
Arizona Corporation Commission to Hold Workshop to Examine the Taxation of Contributions and Advances in Aid of Construction

PHOENIX – The Arizona Corporation Commission, on Tuesday, May 29, 2018, will hold a workshop to examine the potential impact on companies due to the Tax Cuts and Jobs Act of 2018. Many of our regulated utilities routinely receive Contributions in Aid of Construction and Advances in Aid of Construction from developers or customers whose demands on a utility system require additions to infrastructure. Previously, the law had exemptions for water and wastewater utilities, excluding these contributions from taxable gross income. The workshop will examine potential ways to address the tax liability that will now be due on these contributions under the new federal tax law.
Commissioners will seek input from Utilities Division Staff, affected utilities, and other interested parties to determine the appropriate method to address this new tax liability.
In a companion tax matter, following Commissioner Justin Olson’s January 3, 2018 Tax Reform Workshop, commissioners voted unanimously to approve the requirement that all public service corporations listed in the docket to address ratemaking impacts resulting from federal tax reform. Commissioners are committed to ensuring that all utility customers receive tax break benefits by requiring public service corporations to pass on any financial gains incurred as a result of federal tax reform to their ratepayers. To date the Arizona Corporation Commission has approved $165,030,000 million in total savings to be passed on to the ratepayers of Arizona Public Service Company, Arizona Water Company, Inc., Tucson Electric Power Company, UNS Electric, Inc., and UNS Gas, Inc. Customers of these utilities will receive between $2.00 - $5.00 in savings on their monthly bills for the remainder of 2018.  
All items relating to tax reform efforts can be found in the Corporation Commission’s online docket at and entering docket number AU-00000A-17-0379.
To watch the workshop live go to /livebroadcast.
Dial-in Phone Number: 1-800-689-9374 (Passcode: 415962 for Public Comment or 415960 to Listen Only)
When: Tuesday, May 29, 2018 10 a.m.
Where: Arizona Corporation Commission
              Hearing Room One
              1200 W. Washington St.
              Phoenix, AZ 85007
  1. Commissioner Introductions
  2. Commissioner Discussion regarding Tax Treatment of Contributions and Advances in Aid of Construction
  3. Utility Comments
  4. Public Comments
  5. Commissioner Closing Remarks
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The Arizona Corporation Commission was established by the state’s constitution to regulate public utilities and business incorporation. The five Commissioners elected to the Corporation Commission oversee executive, legislative, and judicial proceedings on behalf of Arizonans when it comes to their water, electricity, telephone, and natural gas resources as well as the regulation of securities, pipeline, and railroad safety. To learn more about the Arizona Corporation Commission and its Commissioners, visit