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House Engrossed |
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State of Arizona House of Representatives Forty-ninth Legislature Second Regular Session 2010
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HOUSE BILL 2451 |
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AN ACT
Amending section 40‑361, Arizona Revised Statutes; relating to utilities; providing for conditional enactment.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 40-361, Arizona Revised Statutes, is amended to read:
40-361. Public service corporations; line extensions; utility infrastructure; charges; applicability; rules; definitions
A. Charges demanded or received by a public service corporation for any commodity or service shall be just and reasonable. Every unjust or unreasonable charge demanded or received is prohibited and unlawful.
B. Every public service corporation shall furnish and maintain such service, equipment and facilities as will promote the safety, health, comfort and convenience of its patrons, employees and the public, and as will be in all respects adequate, efficient and reasonable.
C. All rules and regulations made by a public service corporation affecting or pertaining to its charges or service to the public shall be just and reasonable.
D. A public service corporation shall only charge a customer or applicant for a residential subdivision or a master plan community development for the just and reasonable costs associated with the installation of a line or service lateral or for any necessary utility infrastructure provided to a customer or applicant.
E. For the purposes of this section:
1. "Master plan community development" means developments that consist of a number of separately subdivided parcels for residential subdivisions.
2. "Residential subdivision" means any tract of land that has been divided into four or more contiguous lots with an average size of one acre or less.
Sec. 2. Line extension study committee; membership; report; delayed repeal
A. The line extension study committee is established consisting of the following nine members:
1. One member who represents an electric utility provider that is regulated by the Arizona corporation commission and who is appointed by the speaker of the house of representatives.
2. One member who represents a statewide association representing the real estate industry and who is appointed by the president of the senate.
3. One member who represents an association representing the home building industry and who is appointed by the speaker of the house of representatives.
4. One member who represents a statewide association representing the agricultural industry and who is appointed by the president of the senate.
5. One member who is a residential electric utility rate payer, who lives in a county with a population of less than eight hundred thousand persons and who is appointed by the speaker of the house of representatives.
6. One member who is a residential electric utility rate payer, who lives in a county with a population of eight hundred thousand persons or more and who is appointed by the president of the senate.
7. One member who owns a small business and who is appointed by the speaker of the house of representatives.
8. One member of the house of representatives who is appointed by the speaker of the house of representatives.
9. One member of the senate who is appointed by the president of the senate.
B. Members of the line extension study committee serve at the pleasure of the person who made the appointment. The legislative members of the study committee shall serve as cochairpersons. Study committee members are not eligible to receive compensation or reimbursement for expenses.
C. The line extension study committee shall evaluate the following:
1. The economic impact of each regulated utility's line extension policy.
2. The costs versus the benefits of offering free line extensions, credits for line extensions or refundable deposits for the installation of utility infrastructure.
3. The process by which rate increases and settlement agreements are adopted at the Arizona corporation commission.
4. The costs associated with policies adopted by the Arizona corporation commission.
D. Until June 30, 2011, a representative of the Arizona corporation commission shall report to the study committee on a monthly basis the progress of the Arizona corporation commission's line extension workshops.
E. On or before December 15, 2010, the line extension study committee shall provide the committee's evaluation pursuant to subsection C to the government committee, or its successor committee, of the house of representatives and the natural resources, infrastructure and public debt committee, or its successor committee, of the senate.
F. This section is repealed from and after June 30, 2011.
Sec. 3. Conditional enactment
This act does not become effective unless the Constitution of Arizona is amended by vote of the people at the next regular general election to authorize the legislature to regulate and prescribe charges of public service corporations related to line and service extensions for electric service, credits for utility infrastructure, extension agreements and related audits as provided in House Bill 2451, forty-ninth legislature, second regular session.