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REFERENCE TITLE: corporation commission; utilities; amortization; tariffs |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HB 2782 |
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Introduced by Representative Carter N
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AN ACT
amending title 40, chapter 2, article 7, arizona revised statutes, by adding section 40-363; relating to utility rate schedules.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 40, chapter 2, article 7, Arizona Revised Statutes, is amended by adding section 40-363, to read:
40-363. Commission; public utilities; establishing rates; fair value; definitions
A. The commission shall consider the fair value when determining a just and reasonable rate as prescribed in section 40-361.
B. The commission and a public utility shall publish the commission's and the public utility's tariff schedule, including the amortization schedule of how costs associated with regulatory assets are recovered over time. For the purposes of this section, the Unamortized balance shall be reduced by the amount of revenue that is collected from customers to cover amortization expenses.
C. For the purposes of this section:
1. "Fair value":
(a) means the book value of utility property at the time service is provided to consumers and rates are effective.
(b) Includes the unamortized balance on the books of the public utility at the time the public utility provides service to consumers.
2. "Public utility" includes public service corporations, municipally owned systems and districts that are subject to article XIII, section 7, Constitution of Arizona.
Sec. 2. Legislative intent
The legislature intends that the corporation commission and a public utility publicly post tariff schedules, including amortization schedules, that impact rates as this provides the public with the ability to comment on rate schedules that are set by the corporation commission.