Corp Comm considering how utilities seek rate changes

The Arizona Corporation Commission is considering changing the way utility companies apply for rate changes. At a meeting Tuesday, commissioners discussed allowing utility companies to use future year cost and investment estimates to apply for rate increases, rather than the current standard that requires companies to use historical year cost and investment numbers. Commission Chair Jim O’Connor said using a future year could help reduce regulatory lag, but that the change is still in the early stages of discussion. “Our intention is to explore as rigorously as possible the best for ratepayers and our utility companies here in the state,” O’Connor said. The commission voted to hold workshops in August or September to explore the possibilities. However, Commissioner Anna Tovar – the lone Democrat on the commission – expressed concerns that the change might not be within the commission’s jurisdiction under the Constitution. An attorney for the board said some of the new formulas being considered for rate case applications could require a change to the state constitution, but those legal concerns will be explored as the commission considers the idea. Multiple utility companies filed letters of support for the plan to the commission, saying it would make rate case applications easier and put Arizona on par with other states in terms of regulatory lag. Commissioner Nick Myers, who opened the inquiry into changing test year considerations, said the state’s regulatory lag can be seen in the fact that his letter opening the inquiry was filed in January 2023. O’Connor acknowledged the significance of the proposed change and said the commission will carefully consider its options. “What we are considering here is a major change in how we have historically approached rate cases,” he said. “And there are meaningful impacts to any decision we make in the future with regard to our approach to test year considerations.”

Voucher program cost the state nearly $714 million this year

The latest estimates from the Dept. of Education show the ESA program cost $713.9 million and enrolled about 75,000 students at the end of FY2024. But the start of the new school year is likely to show more than 80,000 students enrolled in the program. As of July 1, ADE reported 58,252 students in the program, with the caveat that about 22,000 students are still in the process of renewing their contracts. The reality of the FY2024 funding and enrollment slightly contrasts with earlier projections and predictions by ADE, JLBC and the governor’s office. In January, a report from the Depart. of Education and ESA director John Ward predicted the program would grow to 85,000 students and cost $732 million by the end of the fiscal year, which shrank from the department’s prediction in June 2023 that about 100,000 students would be enrolled by July 2024. The governor’s office cited projections of its own in July 2023, estimating the program would cost $943.8 million by the end of FY2024 based on the assumption that 97,580 students would be participating in the program. Matt Ladner, senior advisor for education policy for the Heritage Foundation, said 100,000 seemed “like a scary number” for Hobbs and the Democrats and an “ambitious” number for the department. “I’m not shocked we didn’t hit (100,000),” Ladner said. Though universal expansion brought an influx of students, Lander said, “at some point it was going to plateau.” He continued, “At the end of the day this is still an incremental process. It’s not a gold rush.” The JLBC, on the other hand, predicted a $703 million cost by the end of FY2024, and by the end of FY2025, enrollment is expected to grow to 82,000 at a total cost of $825 million. ESAs were budgeted at $625 million in FY2024 with an anticipated enrollment of 68,000. By the end of the fiscal year, 74,822 students were enrolled in the program, eclipsing the budgeted cost by $88.9 million. As for the next school year, the department noted a more sound enrollment figure would be available in September when all renewal contracts are returned.

Our meme called it yesterday

Arizona for Abortion Access plans to file a lawsuit by Wednesday over the way their initiative is currently summarized in the description pamphlet that is sent to voters ahead of the election, Communications Director Dawn Penich told our reporter. The hearing for the pamphlet description for the Arizona Abortion Access Act met backlash from Democrat lawmakers on Monday. “We are profoundly disappointed that the Arizona Legislative Council today chose to disregard its statutory duty to produce an impartial summary of the Arizona Abortion Access Act by rejecting our common-sense request to use neutral, universally-recognized medical terminology in their ongoing effort to put extremist politics above Arizona voter’s rights,” Penich said in a prepared statement. The group is planning to sue in order to “ensure Arizona voters are presented with clear and accurate information before they cast their ballots,” Penich said. Gutierrez said during the hearing Tuesday that“scientific language is the most appropriate to use” and suggested an amendment to the initiative’s description which would have changed “unborn human being” to “fetus,” but it did not pass. Attorney Austin Yost, representing the Arizona for Abortion access campaign committee, said Monday the legislative staff did an “excellent job” preparing the summary but suggested the same amendment. “This amendment would make the summary neutral, objective and medically accurate, and it would be consistent throughout,” Yost said, pointing to a later line item in the description which used the term “fetus.” Yost said the council has a statutory duty to provide an impartial analysis and the term “unborn human being” is “tinged with partisan coloring.” Republican lawmakers disagreed, and said the use of both terms provided a balanced description of what the constitutional amendment would do. Stahl-Hamilton, said “fetus” is the most-medically accurate word to use, just as “spontaneous abortion” is the term for an accurate way to describe a miscarriage. However, Republicans said they were more focused on how the public understands terminology. “I’m not a doctor, Representative Stahl-Hamilton, I don’t care what the medical accurate term is,” Toma said. “The average person doesn’t refer to it that way. They refer to it as a miscarriage, and we commonly refer to it as that, because there’s a distinction, and the words actually matter.” With an 8-6 vote, the panel voted to leave the language the way it was.

Governor backs federal water measure to benefit tribes

Hobbs expressed support for federal legislation introduced Monday that would secure water rights for the Navajo Nation, the Hopi Tribe and the San Juan Southern Paiute Tribe. The bill, introduced by Kelly and Sinema in the U.S. Senate, would ratify and fund the Northeastern Arizona Indian Water Rights Settlement Agreement. It would provide $6.75 billion for water development and distribution projects and would guarantee the tribes access to a portion of the Colorado River. In a statement released Monday, Hobbs said, “The State of Arizona is thrilled to support the Northeastern Arizona Indian Water Rights Settlement Act, which will, at long last, provide access to safe, reliable water supplies to the Navajo Nation, Hopi Tribe, and San Juan Southern Paiute Tribe.” In April, Hobbs signed onto a water rights settlement with the Colorado River Indian Tribes. That settlement came from legislation also introduced by Kelly. The bill introduced Monday received bipartisan support from Arizona’s congressional delegation, with Ciscomani, Grijalva, Stanton and Schweikert signing on. The Colorado River River Indian tribes settlement bill took about a year to move through Congress, but members of the Northeastern tribes are eager to get the new bill moving. “We look forward to seeing Congress work to ensure this bill becomes the law of the land,” said Robbin Preston Jr., president of the San Juan Southern Paiute Tribe.

Nixon starts ‘dream job’ as Gov. Kelly’s communications director

Ana Nixon was introduced Tuesday as Gov. Laura Kelly’s new communications director — a position that’s been vacant since Brianna Johnson’s departure in February.

“I’m super-honored for the opportunity,” Nixon told State Affairs. “It’s definitely a dream job.” 

Nixon said she pursued the prominent position because of a desire to return to a public-facing role. She spent the past eight years at the Federal Reserve Bank of Kansas City, most recently in a senior role overseeing the agency’s internal communications team. 

“I feel like I’m prepared and have all the skills I need to succeed in the role,” Nixon said. 

But her six-year stint as Grandview, Missouri’s public information officer was the most “challenging, rewarding and meaningful” of her career — proving to be a far cry from the Federal Reserve’s corporate culture. Nixon said she views her gig in the governor’s office similarly to her time in Grandview but on “a much higher level.” That work covered media and public relations, as well as crisis communications.

Nixon said results from a resident survey showed she helped increase “communications services satisfaction” by 23% during her time there. 

“I’m very service-oriented and love to work with the public and constituents, and my personality matches with this type of work,” she said. “This is a great opportunity for me to grow and enhance those skills.”

Kelly also believes Nixon will excel in the role. 

“I am confident that Ana’s skills and leadership experience will make her an invaluable part of my team,” Kelly said in a news release. “I welcome her expertise and look forward to working with her in this role.”

Nixon earned a Bachelor of Science in Journalism from Federal University of Juiz de Fora in her native Brazil and a Master of Arts in Communications from the University of Kansas.

“I’m excited to help Kansans learn more about our important work we do here,” she said.

Matt Resnick is a Statehouse reporter at State Affairs Pro Kansas/Hawver’s Capitol Report. Reach him at [email protected].

CD1 Dem candidates better get busy

Political pollsters at Noble Predictive Insights say the CD1 Democratic Primary race is a toss-up. The company published its polling data for the race Tuesday and none of the six candidates got more than 20% of respondents to support them. "This race is a mess. And that's not a surprise. National politics has sucked all of the air out of the room. None of these candidates are particularly well-known. And on the Democratic side of the aisle, there’s no single issue that focuses and divides up primaries," said David Byler, the chief of research at Noble. “Many Democrats haven’t tuned in, and those who have are split and unsure.” All candidates also may have difficulty with name recognition with at least 20% of respondents indicating they’ve never heard of every candidate. Candidates Andrei Cherny and Amish Shah polled the best, with both getting support from 16% of respondents, but 35% of respondents said they’re not sure who they’ll vote for and Byler said that likely underestimated the number of persuadable voters in the race. Marlene Galán-Woods received support from 14% of respondents and Connor O’Callaghan got 11%. “It’s interesting that this close to Election Day, no candidate has reached at least 20% support. Democrats might be a little rusty in their campaigning having had no competitive primaries in a long time and since Arizona has become a battleground,” said Noble CEO Mike Noble. The poll was conducted from June 25-27 and surveyed 420 CD1 likely Democratic primary voters.

Some Dems already showing us the money

A couple of Democratic candidates in swing districts released their fundraising numbers a few days earlier than when campaign finance reports are due for quarter two. The Arizona Democratic Legislative Campaign Committee informed our reporter that LD4 candidates Kelli Butler and Karen Gresham both broke records for how much money a state House candidate has raised in the second quarter fundraising period. Butler raised more than $150,000 and Gresham raised more than $140,000. They face Gress, who raised $70,000 in the first quarter and ended the period with $177,000 in cash balance. “Last quarter's fundraising clearly shows voters want elected officials who will focus on real problems we face, especially protecting access to abortion and contraception and supporting our public schools. I'm grateful for all the voters who understand that our LD4 House race is a real opportunity to create a new, democratic majority who will prioritize these important issues,” Butler said in a written statement to our reporter. Republican Pamela Carter is also running in LD4 and raised $23,000 in the first quarter, which was nearly as much as Butler and Gresham combined during that period. Schwiebert also raised $166,000 for her LD2 Senate campaign. She had $161,000 at the end of the first quarter. Her opponent, Bolick, raised $113,000 at the end of the first quarter, while Schwiebert nearly doubled how much she outraised Bolick by in quarter one.

Plan for weekend I-17 southbound restriction in north Valley

PHOENIX – Drivers planning to use southbound Interstate 17 in the north Valley this weekend should budget extra time with pavement improvement work reducing the freeway to one lane at Loop 303/Sonoran Desert Drive and with traffic exiting and re-entering at Jomax Road. 

 

The lane restrictions and the closure at Jomax Road, with traffic using the off- and on-ramps, are scheduled to begin at 9 p.m. Friday and end by 5 a.m. Monday, July 15. Drivers should plan for delays, especially from afternoon into early evening on Saturday and Sunday, and may want to consider traveling through the area earlier or later. 

 

Continuing a much-needed project to improve the ride on 6 miles of I-17 between Happy Valley Road and State Route 74, crews will be replacing bridge deck joints, among other work, in the stretch between Loop 303/Sonoran Desert Drive and Jomax Road. The project has already removed the top layer of older, worn asphalt pavement and later will smooth the remaining concrete surface through a process called diamond grinding. 

 

Other details:
  • To help keep traffic moving through the work zone this weekend, east- and westbound Jomax Road will be closed at I-17. Southbound I-17 drivers wanting to access Jomax Road can continue to Happy Valley Road and use northbound 19th Avenue.
  • Drivers wanting to enter southbound I-17 at Jomax Road will be directed onto northbound I-17 to access southbound I-17 at Loop 303/Sonoran Desert Drive.
  • The southbound I-17 off-ramp at Loop 303/Sonoran Desert Drive will be closed from 9 p.m. Friday until 8 a.m. Saturday, July 13, and from 9 p.m. Saturday until 5 a.m. Sunday, July 14.
  • Earlier in the week, on Wednesday and Thursday nights, July 10 and 11, southbound I-17 will be narrowed to one lane between Loop 303 and Dixileta Drive from 9 p.m. to 5 a.m. The southbound I-17 on-ramp at Loop 303/Sonoran Desert Drive also will be closed during the same hours. 

 

To learn more about this project and subscribe for updates, please visit   azdot.gov/i-17HappyValleySR74

 

The I-17 pavement work between SR 74 and Happy Valley Road is separate from the I-17 Improvement Project currently underway north of Anthem Way. For more information about that larger project visit improvingi17.com

 

Real-time highway conditions are available on ADOT’s Arizona Traveler Information site at az511.gov , the az511 app (download for Apple or Android devices) or by calling 511.

Plan for weekend I-17 southbound restriction in north Valley

PHOENIX – Drivers planning to use southbound Interstate 17 in the north Valley this weekend should budget extra time with pavement improvement work reducing the freeway to one lane at Loop 303/Sonoran Desert Drive and with traffic exiting and re-entering at Jomax Road. 

 

The lane restrictions and the closure at Jomax Road, with traffic using the off- and on-ramps, are scheduled to begin at 9 p.m. Friday and end by 5 a.m. Monday, July 15. Drivers should plan for delays, especially from afternoon into early evening on Saturday and Sunday, and may want to consider traveling through the area earlier or later. 

 

Continuing a much-needed project to improve the ride on 6 miles of I-17 between Happy Valley Road and State Route 74, crews will be replacing bridge deck joints, among other work, in the stretch between Loop 303/Sonoran Desert Drive and Jomax Road. The project has already removed the top layer of older, worn asphalt pavement and later will smooth the remaining concrete surface through a process called diamond grinding. 

 

Other details:
  • To help keep traffic moving through the work zone this weekend, east- and westbound Jomax Road will be closed at I-17. Southbound I-17 drivers wanting to access Jomax Road can continue to Happy Valley Road and use northbound 19th Avenue.
  • Drivers wanting to enter southbound I-17 at Jomax Road will be directed onto northbound I-17 to access southbound I-17 at Loop 303/Sonoran Desert Drive.
  • The southbound I-17 off-ramp at Loop 303/Sonoran Desert Drive will be closed from 9 p.m. Friday until 8 a.m. Saturday, July 13, and from 9 p.m. Saturday until 5 a.m. Sunday, July 14.
  • Earlier in the week, on Wednesday and Thursday nights, July 10 and 11, southbound I-17 will be narrowed to one lane between Loop 303 and Dixileta Drive from 9 p.m. to 5 a.m. The southbound I-17 on-ramp at Loop 303/Sonoran Desert Drive also will be closed during the same hours. 

 

To learn more about this project and subscribe for updates, please visit   azdot.gov/i-17HappyValleySR74

 

The I-17 pavement work between SR 74 and Happy Valley Road is separate from the I-17 Improvement Project currently underway north of Anthem Way. For more information about that larger project visit improvingi17.com

 

Real-time highway conditions are available on ADOT’s Arizona Traveler Information site at az511.gov , the az511 app (download for Apple or Android devices) or by calling 511.

CHC BOLD PAC’s Chairwoman Linda Sánchez Statement on Arizona Democratic Candidate Portraying an Insensitive Stereotype of Latinos

Washington, D.C. – Today, CHC BOLD PAC Chairwoman Linda Sánchez released the following statement regarding Amish Shah’s insensitive photo towards Latinos: “Over the course of history, Latinos have been subjected to mocking and diminishing stereotypes that undermine our contributions and identity. As the political arm of the Congressional Hispanic Caucus, our mission is to uplift our Latino community by electing representatives who truly represent their values and to stand against hurtful rhetoric and stereotypes of our community. At best, misappropriating traditional clothing to use as a prop mocks our culture and heritage and at worst, it serves to perpetuate harmful stereotypes. It is utterly unacceptable. We call on Amish Shah to offer a sincere apology for his behavior,” said Chairwoman Linda Sánchez.  “In a battleground district like AZ-01 that is home to over 147,000 Latinos , BOLD PAC is proud to stand with Marlene Galan-Woods, who if elected would be the first Latina to represent Arizona in Congress. We know she is the only candidate who can flip this seat and will represent our community’s values, including protecting abortion access and defending our democracy. We owe it to our communities to help elect Members of Congress who will uplift our contributions and fight for us.”

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