News

 Valley Lights Stay On

Hatch-Miller Heaps praise on Valley for energy conservation efforts.

In a meeting with top utility executives, Commissioner Jeff Hatch-Miller praised Arizonans for preventing blackouts during the valley's power crunch. Everyone turned off their lights and turned up their air conditioners, saving enough power to fuel 90,000 homes everyday.

The power saga began on June 14, when a great blue hearing left organic material behind on an extremely-high-voltage power line (500 kv) as it took off. The line heated up and fell to the ground, short-circuiting the system. The main breaker, just like the breaker in your house only bigger, was supposed to trip, but didn't for 38 seconds-an eternity for high voltage electricity.

The disruption to the system caused Palo Verde to shut down, and my have caused stress on the overall system. On the fourth of July, a fire started at the Westwing substation. The Westwing substation had to be taken offline which reduced the amount of power that could be brought into the valley. Weeks later another fire broke out, nearby, at the Deer Valley substation.

This unfortunate chain of events-started by a blue hearing-has truly brought the valley together. Keep up the good work!

 Water Rates Increase

Two of Arizona's largest private water companies had their rates reviewed during 2004. The Commission recommended a combination of increases and decreases, based upon the costs to install, maintain and operate each of the systems.

The average increase was 9.6%. Given that these increases are the first since the early 1990s, the average yearly increase is quite small.

While the Companies asked for fairly large increases, the Commission determined that only small increases in rates were justified. A few isolated communities saw larger increases due to unique water delivery problems.

Many Arizona water companies are working to conform to new federal Environmental Protection Agency (EPA) requirements to lower the amount of arsenic in our drinking water. See "Feds Offer Help" for more information about this expensive challenge.
Because of Arizona's drought and the Commission's conservation efforts, additional actions were taken to conserve water. Citizens that use the least water will now pay the least per gallon. Hatch-Miller has led efforts to ensure that every company has a plan for cutting back on water use when supplies are limited.

At the Commission we're working overtime to ensure that safe drinking water is available and affordable for everyone.

 Fuel Pipeline Repaired

On July 30 of 2003, the pipeline transporting the Valley's gasoline burst, causing local gasoline prices to soar and a shortage of the exotic blend of gasoline required by the EPA for use in Phoenix. The break caused large amounts of gasoline to spill into the environment tainting groundwater and residential homes in Pima County.

The ACC Pipeline Safety Division has crews under contract by the Federal Office of Pipeline Safety (OPS) to inspect interstate pipelines. In our opinion, the federal OPS did not allow for a sufficient number of days to conduct adequate operational and safety inspections. The Kinder Morgan Pipeline was one of these under-inspected interstate pipelines. Up until very recently, the crews were given only 10 days by OPS to inspect all the interstate pipelines in Arizona. As early as June of 2000, the ACC had asked OPS for more authority in regards to inspecting interstate pipelines.

The Federal OPS has now granted an unlimited number of days for inspections, and Kinder Morgan was fined $375,000, the largest fine ever imposed by the OPS. This is a result of our demands for strong action.

But there is still a lot of work to be done. I am calling for improvements in the federal/state relationship because we need to take back some of the power from the Federal government and return it to our own state agency, the ACC. I am committed to working tirelessly both with our Congressional delegation and the OPS to achieve this and protect our citizens from the type of environmental and economic fiasco that occurred last summer.

Solar Power -- Supersize It!

Where is the world's largest solar power facility?

     A. Italy, 
     B. Philippines 
     C. Germany 
     D. Arizona 

You'll be surprised to learn that the answer is D, Arizona. Tucson Electric Power Company's (TEP) Springerville Solar Power Generating Station produces nearly 4 million watts (MW) of electricity. That makes it the world's largest grid-connected solar array. 

Being grid-connected means that the power can be used by everyone, whether they live in Yuma, Page, Tucson or elsewhere. 

The Springerville Generating Station is being built in phases, eventually covering 88 acres and capable of generating 8 million watts of electricity. 

Italy, the Philippines and Germany are also expanding their solar power plants -- so the title "world's largest" may change hands from time to time. But right now, we're in first place, and working to keep our title. 

By the way, Arizona has another world class solar energy site, this one owned and operated by Arizona Public Service. Located near Prescott, Arizona, it currently produces 1.8 million watts of solar energy. Eventually, the plant will produce 5.5 MW, giving it a world class ranking.

 Feds Offer Help

Commissioner Hatch-Miller traveled to Washington, D.C. to raise awareness in Arizona's congressional delegation on the huge cost of Arsenic compliance that will be borne by rural and small-system water users. Those in Washington promised to help, but that help is still forthcoming. With less than a year and a half before companies will be fined, time is of the essence. Hatch-Miller is working with state leaders, water users and suppliers to continue to raise awareness on the issues and keep the issue on the radar screen in Washington.

Arizona is one of only a handful of states where Arsenic is present in the water. Arsenic occurs naturally in our drinking water and removing it is expensive. We have the technology to do the job but paying for the new treatment systems presents a major challenge to use all.

Click here for more information on the arsenic issue.

 Scam Artists Caught

"Not everyone selling investments in Arizona is honest. A few people are willing to say or promise anything to get us to hand over our hard-earned savings," Hatch-Miller said, reflecting on some of the more notorious investment scams in recent memory.

In the case of The Baptist Foundation, deceptive salesmen enticed 11,000 people to invest over one-half billion dollars. Fortunately, these activities were uncovered by Corporation Commission staff. A lock was put on the accounts. Much of the money was returned to investors. Criminal prosecution was conducted by the Attorney General.

Tragic examples are all too frequent: partnerships in a non-existent Costa Rican mine, shares of pay telephone stock, promises of high returns for no effort. These scam artists are smooth talkers who use every trick in the book to get your cash. Sadly, in many of these "too good to be true" scams, those that hand over their hard earned dollars are lucky to get 10 or 15 percent of their money back.

So don't be fooled. You can call the Arizona Corporation Commission's Security Division at 602-542-0428 for more information. Or check them out at www.ccsd.cc.state.az.us.

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