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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: NREW DPA 5-3-0-2 |
HB 2782: corporation commission; utilities; amortization; tariffs
Sponsor: Representative Carter N, LD 15
Caucus & COW
Overview
Requires the Arizona Corporation (ACC) to consider the fair value when determining a just and reasonable rate. Additionally requires the publishing of tariff schedules of how costs associated with regulatory assets are recovered over time.
History
The ACC is established in the Constitution of Arizona to regulate public service corporations, which includes non-municipal corporations that furnish gas, oil or electricity for light, fuel or power (Constitution of Arizona, Article 15, § 2). Specifically, the ACC has the full power to prescribe rules, regulations and orders that govern a public service corporation's rates, charges and classifications, which is collectively referred to as its ratemaking authority. Additionally, the ACC can prescribe the forms of contracts and systems of accounts these corporations employ and can make and enforce reasonable rules, regulations and orders for the convenience, comfort, safety and preservation of health of the corporation's employees and patrons (Constitution of Arizona, Article 15, § 3).
Tariff means the documents filed with the ACC which list the services and products offered by the utility and which set forth the terms and conditions and a schedule of the rates and charges for those services and products (ACC).
Provisions
1. Requires the ACC to consider the fair value when determining a just and reasonable rate. (Sec. 1)
2. Mandates the ACC and a public power utility publish each of their respective tariff schedules of how costs associated with regulatory assets are recovered over time. (Sec. 1)
3. Requires, for purposes of this act, the unamortized balance be reduced by the amount of revenue that is collected from customers to cover amortization expenses. (Sec. 1)
4. Defines fair value and public utility. (Sec. 1)
5. Contains a legislative intent clause. (Sec. 2)
Amendments
Committee on Natural Resources, Energy and Water
1. Removes the requirement that the Commission must consider fair value when determining a just and reasonable rate. (Sec. 1)
2. Requires the ACC and Public Service Corporation, if a regulatory asset is included in rate base or otherwise reflected in rates based on a test year or historical balance, to disclose specified information. (Sec. 1)
3. Specifies that nothing in this act requires the ACC to adopt any particular adjustment mechanism however it does require the ACC ensure that the disclosures are sufficient to compare the total amounts that will be recovered in rates against the remaining unamortized balance of regulator asset. (Sec. 1)
4. Modifies the legislative intent section. (Sec. 2)
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8. Initials CW HB 2782
9. 2/18/2026 Page 0 Caucus & COW
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