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APS to Pay $3.25 Million for 2011 Outage
APS to Pay $3.25 Million for 2011 Outage

Robert Anglen, The Republic | azcentral.com 8:23 a.m. MST July 8, 2014

Federal regulators found APS' violations undermined operation of the bulk power system, However, since the blackout, they said APS has taken steps to increase reliability and ensure better safety.

Arizona Public Service Co. has agreed to pay $3.25 million in civil fines and system improvements to end an investigation into its role in a 2011 power outage that affected millions of customers in Arizona, California and Mexico.

The settlement agreement, announced Monday, ends a joint investigation by the Federal Energy Regulatory Commission and the North American Electric Reliability Corporation, which found APS' failure to communicate with neighboring power companies contributed to the cascading blackout.

"Enforcement staff and NERC found APS' violations ... to be serious deficiencies undermining reliable operation of the bulk power system," FERC officials said in a statement Monday. "However, since the blackout, APS has worked cooperatively with Enforcement staff and NERC, as well as on its own, to improve reliability."

APS officials said Monday the settlement does not imply the company accepts blame.

"APS neither admits nor denies the violations cited in the settlement," APS spokesman Jim McDonald said. "Resolving this issue enables us to move forward and continue working with the other entities to implement measures to help avoid similar future events."

The settlement calls for APS to pay $1 million each to the U.S. Treasury and to NERC, which regulates power systems in the United States, Canada and the northern portion of Baja California, Mexico. It also will pay $1.25 million for new "enhancement measures."

APS has already added equipment in substations north of Yuma to handle increased power demands and also has installed a control system in Phoenix to better monitor the power grid throughout the Southwest.

The outage left about 5 million people, primarily in Southern California and Mexico, without power for up to 12 hours.

A joint report released by investigators in 2012 said the outage exposed the need for improved preparation and communication among power-grid operators.

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Commission Candidates Debate Solar Taxes
Commission Candidates Debate Solar Taxes

Ryan Randazzo, The Republic | azcentral.com 8:16 p.m. MST June 28, 2014 -- Candidates for the Arizona Corporation Commission are spending more time debating where their political support is coming from than the utility policies they would pursue if elected.

The five-member commission that regulates utilities, securities, pipelines and railroad crossings in the state has two open seats this year.

Candidates Lucy Mason and Vernon Parker are running as a team in the Republican primary. They have been endorsed by a solar-industry group that frequently has business matters decided by the commission.

Mason and Parker have accused their competitors, Tom Forese and Doug Little, of receiving support from Arizona Public Service Co. A political independent-expenditure committee called Arizona 2014 supports Forese and Little. APS has not responded to questions regarding support of the committee, and utility officials have said they will not guarantee the company will stand on the sidelines of the election.

The winners in the Republican primary in August will face Democrats Sandra Kennedy and Jim Holway in the November general election.

During a televised debate Wednesday, the Republicans struggled to put distance between themselves, agreeing in general that protecting utility ratepayers is paramount to the job and highlighting their respective qualifications.

However, they split widely when asked about property taxes on rooftop solar.

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Tax on Leased Solar Panels Enlivens ACC Debate
Tax on Leased Solar Panels Enlivens ACC Debate

Mason Parker Lucy Mason and Tom Forese

June 27, 2014  •  By Howard Fischer Capitol Media Service •  PHOENIX — Two Republicans hoping to sit on the Arizona Corporation Commission lashed out at a decision by the state Department of Revenue to impose property taxes on leased solar panels.

“We have unelected officials in our state passing laws that affect seniors, churches, schools,” complained Vernon Parker. He said if the panels are to be taxed, that should have been a decision by the Legislature.

Lucy Mason, running as a team with Parker, agreed that the levy is unjustified.

“I don’t like it at all,” she said during a debate Wednesday night sponsored by the Citizens Clean Elections Commission.

But candidate Doug Little said it’s not that simple. He said that exempting the solar panels leased by individual homeowners from the annual property tax creates an inequity with firms that are in the business of actually selling electricity.

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APS May Take the Gloves Off as Election Advocate
APS May Take the Gloves Off as Election Advocate

azcapitoltimes.com/By: Luige del Puerto June 23, 2014 , 5:33 pm --- In response to pointed questions raised by two Republican candidates, Arizona Public Service, the state’s biggest electricity provider, insisted that it has not contributed to campaigns for the Corporation Commission.

But the utility also maintained that nothing legally precludes it from doing so, and in in a letter from one of its executives, it signaled its willingness to play a more aggressive advocacy role in elections.

In a letter to Corporation Commission candidates Lucy Mason and Vernon Parker, APS executive Mark Schiavoni said instead of electioneering, APS has provided all of the candidates “equal access” to information on energy policies and issues affecting it.

“But as you are undoubtedly aware, the political landscape is changing,” wrote Schiavoni, who is APS’s executive president and chief operating officer. “Because of the tactics a number of organizations are employing to misrepresent important regulatory issues, we may need to respond in the future to set the record straight on issues of importance to Arizona, our customers.”

Schiavoni didn’t specify how APS may respond to “set the record straight,” but his letter raised the specter of APS breaking from tradition and spending on Corporation Commission races.

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Candidates Suspect APS Influencing Corporation Commission Race
Candidates suspect APS influencing Corporation Commission Race
Republicans Want Reassurance Company Not Funding Campaigns of Utility Regulators

Ryan Randazzo, The Republic | azcentral.com 5:31 p.m. MST June 19, 2014 -- Two Republicans running for the Arizona Corporation Commission, which regulates utilities, are concerned that Arizona Public Service Co. might be donating money to their opponents.

Vernon Parker and Lucy Mason wrote a letter to APS CEO Don Brandt this week saying that donations to their opponents would be inappropriate because the elected officials would regulate the utility if they win their races.

"It is our opinion that it would be highly inappropriate for APS or its parent company Pinnacle West (Capital Corp.) to influence the elections of its regulators in any way," they wrote.

Mason and Parker cite an independent committee named Arizona 2014, which sent a recent mass email soliciting donations for Republicans Tom Forese and Doug Little, who also are running for the two open seats on the five-member commission.

Mason and Parker want to know if APS or its parent company, Pinnacle West Capital Corp., are funding the committee.

The independent expenditure committee is chaired by Max Fose, president of the IWS advertising agency, according to records filed with the Secretary of State.

It would be illegal for Forese and Little to coordinate with such an independent committee, however, the committees can campaign on behalf of candidates, or in opposition of others, without the candidates' cooperation. Forese and Little's campaign spokesman declined to comment for this story.

APS has a corporate policy prohibiting participation in Corporation Commission elections.

Utility officials have previously said it is improper to support commission candidates because, unlike other elected state and federal offices, the Corporation Commission deals directly with APS and decides how much the company is allowed to charge customers.

But APS has broken those policies at least twice in recent years.

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UNS Buyout Gets Mostly Cheers Hearing
UNS Buyout Gets Mostly Cheers at Hearing

6/17/2014/Arizona Daily Star/By David Wichner -- The planned buyout of Tucson-based UNS Energy Corp. by Canadian utility giant Fortis Inc. won the endorsement of key parties at formal hearings on the deal that opened Monday.

But the parent of Tucson Electric Power Co. and its suitor still faced some questions about the $4.3 billion deal, including queries about the recent closure of a UNS office in Nogales.

Under a deal announced in December, Fortis would acquire UNS Energy in a cash deal worth $60.25 per share, or about $4.3 billion including the assumption of about $1.8 billion in debt.

In a settlement agreement unveiled in May, Fortis has agreed to 66 conditions, including agreeing to provide $30 million in customer billing credits over five years, as well as an immediate equity injection of $220 million.

Besides giving shareholders a premium on their shares, UNS says joining Fortis would improve its access to capital needed to fund a move away from a reliance on coal, including the planned purchase of a gas-fired plant in Gila Bend, as well as boost investment in other infrastructure improvements.

“While things always change, I would argue that all the changes going on in the electric utility industry will require significant capital,” said Phil Dion, senior vice president of public policy and customer solutions for UNS Energy.

The Canadian utilities giant has said it would retain local management and allow local control of company operations, as it has done with other acquisitions, Dion noted.

“Yeah, they are far off, and they’re going to stay far off,” Dion said.

Fortis has also agreed to avoid any layoffs at UNS for four years, at the request of unions representing about 1,000 workers.

UNS wants the Arizona Corporation Commission to approve the merger by mid-September so the deal can close by Oct. 1, Dion said. An administrative law judge is conducting the hearings in Tucson and will make a recommendation to the five-member state utility commission.

An official of the Residential Utility Consumer Office, a state watchdog agency, said the agency believes the deal will leave UNS and its utility subsidiaries in better shape than the status quo.

RUCO lawyer Daniel Pozefsky cited the billing credits and capital injections, which will help give TEP and sister rural utilities UNS Energy Services (UES) better access to capital at better rates.

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Two Commission Candidates Oppose Solar Property Taxes
Two Commission Candidates Oppose Solar Property Taxes
The candidates said Thursday the Arizona Department of Revenue's rationale for taxing leased solar panels is counter to state law.

Ryan Randazzo, The Republic | azcentral.com 5:58 p.m. MST June 12, 2014 -- Two candidates hoping to regulate electric utilities in Arizona spoke out Thursday against the state's plans to collect property taxes on rooftop solar panels that are leased. Rooftop panels that people own are exempt from such taxes.

Arizona Corporation Commission candidates Lucy Mason and Vernon Parker, both Republicans, attended a protest last week sponsored by SolarCity Corp., Sunrun Inc. and other companies involved in rooftop solar leases.

The two are running as a team for two open seats this year on the five-member commission that regulates utilities.

The candidates said Thursday the state Department of Revenue's rationale for taxing leased solar panels is counter to state law.

"There is little doubt in my mind that this is an attempt by large special interests in our state to silence their opposition by putting them out of business," Parker said in a prepared statement.

In the Republican primary, Parker and Mason will face Tom Forese and Doug Little, who also are running as a team.

The winners will face Democrats Sandra Kennedy and Jim Holway in the general election. The Democrats also attended the solar rally last week.

Read more...
 
TEP to Provide Power Outage Updates on New, Mobile-Friendly Online Map
TEP to Provide Power Outage Updates on New, Mobile-Friendly Online Map TEP CMYK full logo 2

TUCSON, Ariz.--(BUSINESS WIRE)-- Tucson Electric Power (TEP) is unveiling a new, mobile-friendly outage map featuring updates about local service interruptions.

The new outage map on tep.com is updated every five minutes using data collected from customer reports, TEP crews and electric system monitoring equipment. The map shows the approximate location of outages, the number of customers affected and the number of customers whose service has been restored. It also provides information about the type of outage and an estimated time of restoration for those who remain without service.

“We’re excited to provide a new tool our customers can use to learn about storm damage and other conditions that can interrupt their electric service and find out when we expect service to be restored,” said Philip Dion, Senior Vice President of Public Policy and Customer Solutions for TEP and its parent company, UNS Energy (NYSE: UNS).

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