Corporation Commission Expedites the Value-of-Solar Findings in Unisource Case

Lake Havasu City, AZ – The Arizona Corporation Commission in a 4 to 1 vote, with Commissioner Robert “Bob” Burns voting no, passed phase 1 of Unisource Energy Company’s rate change application. In a compromised amendment this afternoon, Commissioners agreed to Unisource’s proposal to raise the base fee to $15 from the current $10 fee. For those who opt-in to the electric company’s time of use plan the base fee will only go up to $12. “Back in April, Unisource dropped its demand charge proposal for all customers. While this was a victory for ratepayers, the implementation of raising the base fee for customers is not justified or warranted,” Supervisor Buster Johnson stated. Unisource’s original application asked for a customer base charge increase of $10. The $5 increase was a compromise between Unisource, the Corporation Commission, and other concerned parties. Unisource Energy serves about 90,000 customers in Mohave and Santa Cruz County. “A $5 increase would equal more than $450,000 more a month for the utility company,” Johnson said. “That is a $5.4 million a year increase!” Johnson stated that he saw nothing that would warrant this 50% increase. “We should not be satisfied with this compromised deal!” Johnson stated. Johnson also fears a move towards new time of use plans may end up costing residents more. Under Unisource’s plan, current ratepayers will see a $3 savings in their base fee should they chose a time of use plan. New customers will automatically be put onto the plan with the option to opt-out. The plan rewards households for using kilowatts during offpeak hours and penalizes them for using kilowatts during onpeak hours. Under the current rate structure, ratepayers pay a flat rate for all hours. “For working parents, going onto a time of use plan may be difficult. Our lives should not revolve around what hours are best for the Electric Company. Onpeak hours are going to be those hours when the kids get home from school, when dinner is being cooked, and when laundry need to be done for the next day,” Johnson stated. Uniource’s current time of use plan has onpeak hours from 2pm-8pm on weekdays. Aside from the rise in the base fee, Commissioners approved an amendment that would raise solar customer’s rates $1.58 per month to cover additional meter costs. Unisource’s original proposal had asked for a $7 increase. The Commissioners also said further analysis of the value of solar will need to take place before proceeding with changes to net metering. Unisource argued that postponing a delay on changes in solar customer’s rates would just be pushing the can further down the road. Commissioner Andy Tobin made an amendment to ensure that did not happen by requiring the investigation to be done by October, and Chairman Doug Little made an amendment to expedite the value-of-solar findings to be addressed by March. To read all the amendments and documentation in the case please visit: http://edocket.azcc.gov/Docket/DocumentDetailSearch?docketId=18997#docket-detail-container1

SB1071 Fails on Reconsideration

Law Would Have Cost County Taxpayers Thousands Lake Havasu City, AZ – Reconsideration of SB1071 failed 28 to 31 yesterday in the Arizona House of Representatives. The bill, originally sponsored by Arizona State Senator Steve Smith, would have put a $500 cap on fees that a county treasurer may charge for a tax lien deed where ten or more parcels are involved. Supervisor Buster Johnson, Chair of the Arizona Association of Counties (AACo) Legislative Committee, reached out in opposition to the bill. “This was special legislation aimed at helping a private investor in Pinal County,” Supervisor Johnson stated. “I want to thank Representative Cobb for voting against this bill and for recognizing that this was poorly written and would have harmed Arizona’s counties,” Johnson continued. According to AACo, the majority of the treasurer’s in Arizona were against SB1071 stating that if passed it would have set a president for future tax liens that would have cost county taxpayers hundreds of thousands of dollars. “If this bill would have passed a million dollar investor would have end up paying a little over .17 cents per parcel in tax lien deed fees while regular county taxpayers are still paying $50,” Johnson explained. The bill was originally brought about after Phoenix area attorney and multi-million dollar investor Wayne Howard purchased 2,922 tax lien properties in Pinal County resulting in him having to pay a fee of $146,100 to get them deeded through the Pinal County Treasurer’s Office. “Anyone who buys a lien knows the costs when bidding and they make a business decision at that time as to the worth and their investment,” Johnson stated. Current state law allows third parties to purchase properties through tax lien sales after a property owner is delinquent on their taxes for three years. The owners of the lien may then initiate foreclosure proceedings if the landowner does not pay what they owe plus penalties. If the third party obtains a court-ordered judgment on the foreclosure, the third party is then required to obtain a deed transferring the property from the debtor to the third party. The current fee for the issuance of each deed is $50 according. According to Johnson, the current fee only covers half of what it costs the treasurer’s office to transfer the deed. “A breakdown of the actual cost to process these deeds amounts to $97 per deed,” Johnson explained. “At the $50 level we can process them and it still costs the county taxpayers some money,” Johnson continued. “If we put a $500 cap on deeds of ten or more, regular citizens are still being forced to pay the $50 fee while multi-million dollar investors are getting over a 90% reduction,” Johnson stated. Johnson also believes that the language of the bill would not have held up in court. “Legally you cannot bundle multiple deeds. They need to be done individually,” Johnson stated. “If it is a subdivision for example with multiple lots it cannot be put back as one piece … Continue Reading →