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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
public service corporation; rates; intervenor
Purpose
Background
The rates charged by Arizona's investor-owned utilities are established by the Arizona Corporation Commission (ACC). The ACC authorizes a utility to charge rates which will recover expenditures that are appropriate and prudently incurred and also provides an opportunity to earn a fair return on the utility's capital investment. A utility initiates the process to obtain a rate increase by filing an application with the ACC. The application must be based on a test year of actual expenses and investments during a recent 12-month period. All the utility's cost data are drawn from its own records. The ACC requires the utilities to follow a standardized system of accounting procedures that assures that the data can be easily reviewed and verified by the ACC, RUCO and others (RUCO).
The Director of RUCO may: 1) research, study and analyze residential utility consumer interests; 2) prepare and present briefs, arguments, proposed rates or orders and intervene or appear on behalf of residential utility consumers before hearing officers and the ACC as a party in interest and also participate as a party in interest in proceedings relating to rate making or rate design and involving public service corporations; 3) make and execute contracts and other instruments as necessary to perform the Director of RUCO's duties: 4) hire employees as necessary for prescribed purposes; and 5) employ such attorneys as are required to represent the interests of residential utility consumers. The Director of RUCO must adopt administrative rules necessary to carry out RUCO's statutorily prescribed powers and duties. RUCO may advise the consumer of other agencies that may be of further assistance and must refer the consumer to the ACC Utilities Division (A.R.S. § 40-464).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the Director of RUCO to intervene in a public service corporation rate case if the impact of the public service corporation's proposed rate increase to residential customers is 100 percent or more.
2. Makes technical changes
3. Becomes effective on the general effective date.
House Action
NREW 2/3/26 W/D
RED 2/12/26 DP 5-1-1-0
3rd Read 2/23/26 40-17-3
Prepared by Senate Research
March 6, 2026
SB/NRG/hk