September 17, 2025 Open Meeting Highlights

Phoenix, Ariz. - The Arizona Corporation Commission voted on 25 matters, including water, telecommunications, safety, and electric items. Highlights from the meeting include:

Utilities

• Gila Bend Power Partners L.L.C.
• UNS Electric, Inc.
• Tucson Electric Power Company
• Verizon Communications, Inc. and Frontier Communications Corporations Parent, Inc. et al
• Southwest Gas Corporation (G-01551A-23-0341)

ACC

• Electric Energy Efficiency Standards Rules

Gila Bend Power Partners L.L.C. (L-00000V-00-0106 and L-00000V-01-0109)- The Commission voted to extend the time frame of the Certificate of Environmental Compatibility (CEC) authorizing the construction of a natural gas-fired, combined cycle generating plant, switchyard, and related facilities, including a 500 kilovolt (kV) transmission line. The original CEC for the generating plant was granted in 2001. The independent power provider has not begun construction on the generating plant, however, now with the projected load growth for the region and current conditions, the Company says it will move forward with the project, which will add 845 MW to the electricity grid. The authorization to construct now expires February 7, 2032.

UNS Electric, Inc. (E-04204A-15-0142) and Tucson Electric Power Company (E-01933A-19-0028)- The Commission voted 5-0 to approve a reduction in the Lost Fixed Cost Recovery (LFCR) surcharges for Tucson Electric Power Company (TEP) and UNS Electric, Inc. (UNSE) customers. The LCFR surcharge was approved by the Commission in 2013, and aims to offset the loss of revenue for the utilities when customers reduce their bills through energy efficiency and renewable energy programs. Without the surcharge and the frequent adjustments, utilities would be unable to recover the full costs of system improvements that benefit all customers. Effective October 1, 2025, TEP customers will see a decrease of approximately $1.31 on a residential bill with an average monthly usage of 807 kWh, and UNSE customers will see a decrease of approximately $0.77.

Verizon Communications, Inc. and Frontier Communications Corporations Parent, Inc. et al(T-20679A-24-0252, T-01954B-24-0252; T-02115A-24-0252; T-20680A-24-0252; T-03214A-24-0252; T-20681A-24-252 and T-04036A-24-0252) - The Commission voted unanimously to approve a settlement agreement reached with Verizon Communications Inc. (Verizon) and Frontier Communications Inc. et.al., allowing Verizon to acquire ownership of Frontier and its Arizona Operating Subsidiaries. On several occasions in recent years, Intermittent telecommunication outages in parts of northern and eastern Arizona have left communities without the ability to call 911, and law enforcement agencies without the ability to dispatch emergency crews. The outages have affected land lines, cell phone and internet service in Navajo County. "I'm glad to see Verizon take over this historically neglected system in Navajo County and my hope is that emergency service reliability will improve along with service for existing and future customers," said Chair Kevin Thompson.

Southwest Gas Corporation (G-01551A-23-0341) - The Commission voted to approve Southwest Gas Corporation's (SWG) request to recover the remaining balance associated with the Customer Owned Yard Line (COYL) program, which was terminated in SWG's last rate case earlier this year. COYL is the exterior gas piping that connects the SWG meter to the customer's meter, which customers are responsible for repairing and replacing. Under the COYL program, all SWG customers were formerly required to pay a monthly surcharge that helped fund the replacement of customers with COYL's at "no charge." Simultaneously the Commission rejected the establishment of a newly proposed Low-Income COYL program that would have reinstated customer-funded replacement of COYLs for SWG customers who utilize the Low-Income Ratepayer Assistance (LIRA) Program and own their homes.

ACC - Utility Division (RE-00000A-24-0025) - After a lengthy debate and discussion with stakeholders, the Commission voted unanimously to direct Staff to take the next step to repeal the Electrical Energy Efficiency Standards Rules which were established by the Commission in 2010, requiring retail electric utilities to achieve 22% of annual energy efficiency (EE) savings as a percentage of retail energy sales by 2020 through EE programs, load management, or demand-response (DR) programs. "We have reconfirmed that as of 2024, APS is at 26.2% and TEP is currently at 28.52%. Both utilities have exceeded the standard which is out of date," said Commissioner Márquez Peterson. A repeal of the energy efficiency rules does not require electric energy efficiency (EE) programs to cease, although critics expressed concern about electric utilities eliminating its EE programs if the mandate is repealed. "Current Demand-Side Management and EE programs will continue in effect and will be evaluated on a case-by-case basis by the Commission. These programs, when properly structured, play an important role in our utilities' energy mix and certainly fit within the Commission's all-of-the-above approach when it to comes to meeting Arizona's energy needs," said Vice Chair Nick Myers.