Strategic Plan 2014—2019

Five Year Strategic Plan
FY2013 – FY2018

MISSION STATEMENT
Exercise exclusive state regulatory authority over public service corporations
public utilities) in the public interest;
Grant corporate status and maintain public records;
Ensure the integrity of the securities marketplace; and
Foster the safe operation of railroads and gas pipelines in Arizona.

ARIZONA CORPORATION COMMISSION
Strategic Plan 2014—2019
TABLE OF CONTENTS
Overview

3

Organization

3

Division Overview
Administration
Broadcast Services
Corporations
Hearings
Information Technology
Legal
Safety
Securities
Utilities
Table of Organization

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Division Mission Statement
Administration
Broadcast Services
Corporations
Hearings
Information Technology
Legal
Safety
Securities
Utilities

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Goals
Administration
Broadcast Services
Corporations
Hearings
Information Technology
Legal
Safety
Securities
Utilities

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Performance Measures
Administration
Broadcast Services
Corporations
Hearings
Information Technology
Legal
Safety
Securities
Utilities

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Strategic Issues

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ARIZONA CORPORATION COMMISSION
Strategic Plan 2014—2019

O

verview

The Arizona Corporation Commission was established in the Arizona Constitution in 1912. Only
seven states have constitutionally formed Commissions. Arizona is one of thirteen (13) states with
elected Commissioners. In the other thirty-seven (37) states, Commissioners are appointed by either
the governor or the legislature.
In most states, the Commission is known as the Public Service Commission or the Public Utility
Commission. However, in Arizona the Commission also oversees the process of incorporating or
registering a company to do business in the state, registers and oversees securities offerings and
dealers, and enforces railroad and pipeline safety.
By virtue of the Arizona Constitution, the Commissioners function in an executive capacity; they
adopt rules and regulations thereby functioning in a legislative capacity; and they also act in a judicial capacity sitting as a tribunal and making decisions in contested matters. The Commission is
required by the Arizona Constitution to maintain its chief office in Phoenix and is required by law
to conduct monthly meetings.

O

rganization

Commissioners are elected by the people of Arizona for a four-year term, with two or three members standing for election in the statewide general election in alternating election cycles. In the case
of a vacancy, the Governor appoints a Commissioner to serve until the next general election. In the
2000 General Election, the Arizona Corporation Commission was the subject of a ballot proposition
expanding the Commission by two seats to a total of five members.
Ultimate responsibility for final decisions on granting or denying rate adjustments, enforcing safety
and public service requirements, and approving securities matters rests with the Commissioners.
The administrative head of the Commission is the Executive Director who serves at the pleasure of
the Commissioners. She is responsible to the Commissioners for the day to day operations of all
Divisions.

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ARIZONA CORPORATION COMMISSION
Strategic Plan 2014—2019

D

ivision Overview

The Commission is organized into nine Divisions. They are: Administration, Broadcast Services, Corporations, Hearings, Information Technology, Legal, Safety, Securities, and Utilities. Each Division
is headed by a Division Director who reports to the Executive Director. The Divisions are responsible
for revenue generation as well as being subject to legislative appropriation.

Administration
The Administrative Services Director oversees the administrative and fiscal functions of the Commission. The Administrative Services office provides accounting, payroll, purchasing, and personnel support for the entire Commission. The Division is working towards improving efficiency through modernization of electronic processing and enhancing the Division's information technology and infrastructure.

Broadcast Services
The Broadcast Services Division is responsible for the television broadcast production of all meetings
and hearings of the Commission for public viewing and for archiving. Additionally, the Division produces video tutorials and short educational segments on the many varied duties of the Commission. The Division is also responsible for the Commission’s website.

Corporations
The Corporations Division is comprised of five (5) sections including Annual Reports, Corporate Filings, Records, Call Center, and Initial Processing, as well as a small satellite office in Tucson.
The Corporations Division approves for filing all articles of incorporation, amendments to articles, mergers, consolidations, withdrawals, and dissolutions for Arizona corporations; approves corporate and
limited liability company (LLC) names; approves all articles of organization, amendments, changes and
terminations for LLCs; grants authority to foreign corporations and LLCs transacting business in this
State; propounds interrogatories when necessary; and may administratively dissolve or revoke corporations and LLCs that do not comply with specific provisions of Arizona law.
The Division collects from every corporation an annual report reflecting the current statutory agent, corporate address, amount of stock issued (for profits), lists of officers and directors, Certificate of Disclosure, Statement of Bankruptcy. The Division updates the corporation's public record with information
provided by the annual report and also when amendments or changes are submitted by the corporation.
The Division must maintain all information on corporations and LLCs in a data format conducive to
public access; respond to public questions concerning Arizona corporations and LLCs; and respond to
the needs of the business sector by disseminating information. The Division has limited investigatory
powers and no regulatory authority. Arizona corporations and LLCs, however, may be administratively
dissolved if certain statutory requirements are not met. Likewise, the authority of foreign (non-Arizona)
corporations or LLCs to transact business in Arizona may be administratively revoked.

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ARIZONA CORPORATION COMMISSION
Strategic Plan 2014—2019

D

ivision Overview
(cont.)

Corporations (cont.)
The Division acts as an agent for Arizona corporations and limited liability companies whenever either
entity does not maintain a statutory agent or when the agent cannot be located. In these instances, services of process directed to the entity are accepted by the Records Section on behalf of the entity. The
Division is working toward improving efficiency through modernization of electronic processing and
enhancing the Division's information technology and infrastructure.

Hearings
The Hearing Division exercises the Commission’s authority to hold public evidentiary hearings on matters involving the regulation and deregulation of public service corporations, the sale of securities and the
registration of non-municipal corporations. Under the direction of the presiding Administrative Law
Judge (“ALJ”), proceedings are conducted on a formal basis through the taking of sworn testimony, the
cross-examination of witnesses, the admission of documentary and other physical evidence, and the submission of oral arguments or post-hearing briefs.
Evidentiary and procedural rulings are made by the presiding Administrative Law Judge. Rate and Certificate of Convenience and Necessity (“CC&N”) applications are processed under the procedural schedule established by the Administrative Law Judges, in order to ensure that recommended Opinion and Orders are issued in a timely manner within the framework of the Commission’s rules.
The Division is also responsible for Commission record-keeping through its Docket Control Center.
The Division is working toward improving efficiency through modernization of electronic processing
and enhancing the Division's information technology and infrastructure.

Information Technology
The Information Technology Division provides technology services and support such as application development, network services, hardware support, and project management for the entire Commission. The
Division is working toward improving efficiency through modernization of electronic processing and
enhancing the Commission's information technology and infrastructure.

Legal
Matters handled by the Legal Division fall into five general categories: Commission dockets; federal
regulatory dockets; litigation; other administrative matters; and special projects. Most of the division's
resources are devoted to Commission proceedings and to litigation. The Legal Division represents the
Commission in all matters relating to public utility-rate setting, and in other areas not associated with the
Securities Division. Securities-related legal cases are litigated by the Securities Division. The Legal Division is working toward improving efficiency through modernization of electronic processing and enhancing the Division's information technology and infrastructure.

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ARIZONA CORPORATION COMMISSION
Strategic Plan 2014—2019

D

ivision Overview
(cont.)

Safety
The Safety Division consists of two sections—Pipeline Safety and Railroad Safety. The Pipeline Safety Section enforces the Arizona Underground Facilities Law and oversees the construction, operations and maintenance of all intrastate and interstate natural gas, other gases, liquefied natural gas, and hazardous liquid pipeline facilities operating within the State of Arizona. Pursuant to authorization from the US DOT Office of
Pipeline Safety, the ACC’s Pipeline Safety Section performs the required federal inspections and audits of
interstate operators with facilities in Arizona. The Railroad Safety Section oversees the operation and maintenance of all railroad operations, transportation of hazardous materials by rail (including compliance with applicable Federal regulations), track maintenance (railroad tracks, locomotives and railcars, railroad crossing
warning signals, and train control signals and devices) and railroad/street grade crossings. The Division is
working toward improving efficiency through modernization of electronic processing and enhancing the Division's information technology and infrastructure.

Securities
The Division is responsible for licensing and registration of investment advisers, investment adviser representatives, dealers and salesmen; the enforcement of the Securities Act and Investment Act; and Investor Education Outreach. The Division also reviews prospective offerings of securities to ascertain that full and fair
disclosure is made to potential securities investors and that the terms of offerings are not inherently fraudulent. Securities dealers and salespersons are required to register with the Division. Investment advisers and
their representatives are required to be licensed by the Division unless exempt. The Division reviews these
applications and monitors the conduct of dealers and salespersons, investment advisers, and their representatives and investigates possible violations. Where the evidence warrants, the Division brings administrative,
civil, or criminal enforcement actions. The Division is working toward improving efficiency through modernization of electronic processing and enhancing the Division's information technology and infrastructure.

Utilities
The Utilities Division carries out its responsibilities through five organizational sections: Finance and Regulatory Analysis, Telecom and Energy, Engineering, Compliance, and Consumer Services.
The Utilities Division makes specific recommendations to the Commissioners to assist them in reaching decisions regarding public utility rates, financial condition and quality of service for approximately 670 traditional utilities. The Division implements the Commission rules for deregulation of segments of the telecommunications and electric industries. The Division conducts research, presents evidence in hearings, and contracts
with utility rate analysts and expert witnesses in carrying out its responsibilities. The Division also monitors
compliance with Commission decisions. The staff conducts public workshops and other public proceedings
on various regulatory topics. The Division is working toward improving efficiency through modernization of
electronic processing and enhancing the Division's information technology and infrastructure.

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Broadcast

Legal

Five Corporation Commissioners

Informa on

Executive Director

Hearings

Safety

ARIZONA CORPORATION COMMISSION

Corpora ons

CORPORATION COMMISSION

Administration

Securi es

U li es

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ARIZONA CORPORATION COMMISSION
Strategic Plan 2014—2019

D

ivision Mission Statements

Administration
Mission: To pr ovide the executive leader ship and decision-making authority for the timely
resolution of matters coming before the Commission. To plan, coordinate and direct the administrative
and fiscal activities necessary to support the Commissioners and all divisions of the Commission.
Broadcast Services
Mission: To pr oduce and br oadcast all meetings and hear ings of the Commission for public viewing
and for archiving. To produce video tutorials and short educational segments on the many varied duties of
the Commission. To develop and maintain the Commission’s website.
Corporations
Mission: To appr ove cor por ate names and gr ant cor por ate or limited liability company status to
entities organizing under the laws of the State of Arizona; to approve applications from foreign corporations and limited liability companies to transact business in this State; to collect annual reports from all
corporations of record; and to maintain corporate and limited liability company records for the benefit of
public record and service of process
Hearings
Mission: To pr eside over administr ative hear ings and pr ocedur al confer ences concer ning complex
utility and securities matters, and to write and submit Proposed Opinion and Orders for the Commissioners'
consideration at Open Meeting.
Information Technology
Mission: To pr ovide accur ate, efficient, and timely technology design, development, implementation,
communications and maintenance support services to the agency and its respective divisions.
Legal
Mission: To pr ovide legal r epr esentation to the Cor por ation Commission in the per for mance of all of
its powers and duties, except for matters pertaining to the activities of the Securities Division.
Safety
Railroad
Mission: To ensur e that the citizens of Ar izona as well as r ailr oad employees thr oughout the State
have a Railroad System that is operated and maintained in as safe a manner as possible.
Pipeline
Mission: To enfor ce feder al and state pipeline safety r egulations and to pr ovide tr aining and guidance to pipeline operators to ensure safe operation of pipeline facilities. To enforce the Arizona Underground Facilities Law and to provide training to facility owners and excavators in an attempt to reduce
damage to underground facilities and to eliminate personal injuries and deaths associated with underground
facilities.
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ARIZONA CORPORATION COMMISSION
Strategic Plan 2014—2019

D

ivision Mission Statements
(cont.)

Securities
Mission: To ensur e the integr ity of the secur ities mar ketplace thr ough investigative actions as well as
the registration and/or oversight of securities, securities dealers and brokers, investment advisers, and their
representatives; to enhance legitimate capital formation; and to minimize the unnecessary burden and expense of regulatory compliance by legitimate businesses.
Utilities
Mission: To conduct r esear ch and analysis and pr ovide r ecommendations to the elected commissioners on all matters relating to the regulation of public service corporations (public utilities) under the state
constitution and statutes to ensure their actions are consistent with the public interest.

G

oals

Administration
1. To ensure all matters coming before the Commission are resolved in a timely manner, in accordance
with administrative procedures.
2. To manage the day to day operations of the Commission.
Broadcast Services
1. Maintain high standards of broadcast and production services for the Commission and the viewing
public.
2. Develop and maintain an informative and easily accessed internet website for the public doing business with Commission Divisions or participating in Commission business.
Corporations
1. To provide customers with timely processing of their business documents.
2. To provide customers the most expedient public information services possible.
3. To streamline and improve internal customer-related administrative/ operational functions.
4. To expand training opportunities for division staff members.
5. To continually improve customer service and customer satisfaction.
Hearings
1. To conduct fair and impartial hearings, and to propose timely, factually, and legally sound Orders for
the Commissioners' consideration.
2. To provide timely and efficient docket services to regulated utilities and consumers.

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ARIZONA CORPORATION COMMISSION
Strategic Plan 2014—2019

G

oals
(cont.)

Information Technology
1. To provide electronic interaction effectively with the public and other governmental entities. In addition, to implement effective protocols, software, and communication with the public to allow them to
retrieve and submit data, forms, and all other documents.
2. To use information technologies effectively to enhance intra-agency Communications.
3. To improve employees' preparation to use technology and react to their job-specific needs.
Legal
1. To provide efficient, high-quality legal representation.
2. To provide high-quality representation in administrative matters before the Corporation Commission
3. To provide high-quality representation in Judicial matters before various courts.
4. To provide high-quality legal advice to the Commission.
Safety
Railroad
1. To promote and ensure the safe operation of Arizona railroads.
2. To ensure rail/highway grade crossings safety.
Pipeline
1. To protect the public and the environment by providing the highest level of pipeline safety awareness
2. To ensure the pipeline operators in Arizona operate gas pipeline systems as safely as possible.
3. To receive and maintain an interagency agreement with the Federal Dept. of Transportation to ensure
safe operations of interstate pipeline.
4. To maintain and improve the professional skills of the ACC pipeline staff.
Securities
1. To ensure that registered securities offered to public investors are structured fairly and equitably and
fully disclose all information necessary for an investor to make an informed decision.
2. To reduce the public investor losses and protect Arizona's reputation from damage caused by fraudulent sales and services peddled to victims by unlicensed and unregistered frauds.
3. Continue to monitor the integrity of the investment marketplace to allow for enhanced capitol formation while deterring and adjudicating fraudulent practices.
Utilities
1. To ensure that utility service within the Commission's jurisdiction is available to all consumers at
authorized rates.
2. To promote the transition of the telecommunications and electricity generation markets from the current regulated monopoly structure to one of competition while ensuring safe and reliable service.
3. To maximize the Division's operating efficiency through modernization of electronic processing and
enhancing the Division's information technology.
4. To maintain public involvement, accessibility, and regulatory oversight by conducting workshops,
forums, and community outreach programs.
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ARIZONA CORPORATION COMMISSION
Strategic Plan 2014—2019

P

erformance Measures

Administration
1. Increase rate-case efficiencies by reducing the interval between “sufficiency” and final disposition.
2. Monitor the number of division purchase orders issued.
Broadcast Services
1. Monitor the quality of audio and video broadcasts for public access.
2. Develop and evaluate the effectiveness of a newly designed internet website..
Corporations
1. Measure processing times of regular and expedited filings.
2. Compare the number of public information requests by type and response time.
3. Measure internal agency document processing activities.
4. Maintain and promote professional staff development.
5. Evaluate and utilize feedback from customer satisfaction surveys
Hearings
1. Monitor the number of re-hearings due to Hearing Officer error.
2. Maintain efficient processing times and protect the integrity of all public record papers.
Information Technology
1. Monitor electronic public access and electronic filings.
2. Monitor internal agency electronic usage.
3. Maintain updated staff development through IT training courses.
Legal
1. Maintain current attorney/staff continuing legal education.
2. Monitor legal activities by task and caseload.
3. Monitor appeals of commission decisions and related pleadings.
4. Monitor attorney caseload by the number of appearances and by type of hearing.
Safety
Railroad
1. Track the frequency of inspections (by type), violations, derailments, complaints, safety presentations; monitor Hazmat accidents/incidents.
2. Monitor grade crossings and signal/train control inspections.
Pipeline
1. Monitor violations and inspections (by type), and track public awareness seminars.
2. Measure the number of intrastate violations and master meter violations corrected; maintain safety
training classes for Master Meter and Blue Stake, and track class attendance.
3. Maintain renewal of interstate agreements for gas and liquids.
4. Maintain professional staff development and training.
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ARIZONA CORPORATION COMMISSION
Strategic Plan 2014—2019

P

erformance Measures
(cont.)

Securities
1. Examine all incoming applications/filings, registrations/exemptions, examinations, dealer and
salesmen registrations and measure internal agency review time.
2. Measure and monitor the number of enforcement actions/proceedings by type and outcome.
Utilities
1. Measure the annual number of rate cases and tariff applications against the number of utilities
regulated.
2. Monitor the number of filings, applications and interconnection agreements.
3. Track of the number of consumer complaints/requests submitted electronically.
4. Track the number of public programs conducted.

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ARIZONA CORPORATION COMMISSION
Strategic Plan 2014—2019

S

trategic Issues

Strategic Issue 1:

Electronic filing agency-wide at the Arizona Corporation Commission

Description: Electronic filing at the Commission will allow the public to submit and access different types of filings regarding proceedings, rulemakings, licensing, authorizations,
complaints, annual reports and other official forms.
Objective:

To complete the process of transitioning to an agency-wide electronic filing platform
by FY2018.

Strategies:




Beginning in FY2013 and continuing through FY2018, the Commission will:
Perform a detailed review of all filings at the Commission.
Make an assessment of the transition process to electronic filing platform agency
-wide.
 Develop and integrate the necessary databases so that all public information is
gathered and processed in a streamlined manner so as to provide easy access to
filings, information and reports.

Strategic Issue 2:

Update Division database reporting capabilities

Description: Updating the database reporting capabilities of the Utilities and Securities Divisions
will better enable staff to meet the needs and demands of their customers, and the
citizens of Arizona whom they serve.
Objective:

Beginning in FY 2015, the Commission will initiate the process of assessing and updating the software needs of the Utilities and Securities divisions.

Strategies:





Review the current needs of the Divisions.
Plan and develop the requirements and configurations of the necessary software.
Install and test the new software.
Evaluate the software to rate its success.

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