PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2346
(Reference to printed bill)
Strike everything after the enacting clause and insert:
"Section 1. Title 42, chapter 14, article 4, Arizona Revised Statutes, is amended by adding section 42-14159, to read:
42-14159. Computing valuation of distribution cooperatives; standard market value factor; definition
A. the department shall determine the valuation of the electric distribution and transmission property of a distribution cooperative as defined in section 42-14154 THAT is OPERATING IN THIS STATE as follows:
1. compute THE VALUE of the property PURSUANT TO SECTION 42-14154.
2. multiply THE value computed under paragraph 1 of this subsection BY THE STANDARD MARKET VALUE FACTOR determined under subsection b of this section.
b. the standard market value factor shall be determined as follows:
1. using the most recent publicly available data obtained from annual reports produced by the federal energy regulatory commission for each investor-owned electric utility operating in this state, calculate the following standard factors for each investor-owned electric utility:
(a) megawatt hours sold to ultimate customers per ultimate customer.
(b) megawatt hours sold to ultimate customers per net dollar invested in distribution plant.
(c) megawatt hours sold to ultimate customers per dollar of operating and maintenance expense.
(d) megawatt hours sold to ultimate customers per dollar of distribution operating and maintenance expense.
(e) The number of ultimate customers per net dollar invested in distribution plant.
(f) The number of ultimate customers per mile of distribution line.
2. Determine the average of each of the six standard factors under paragraph 1 of this subsection for the investor-owned electric utilities operating in this state as follows:
(a) For each factor, add the values obtained for that factor for all investor-owned electric utilities operating in this state.
(b) divide the sum obtained under subdivision (a) of this paragraph for each factor by the number of investor-owned electric utilities operating in this state that were included in the calculation under subdivision (a) of this paragraph for that factor.
3. Using information obtained from the most recent report filed with the department under section 42-14152, calculate each of the standard factors under paragraph 1 of this subsection for the distribution cooperative.
4. Divide each of the six standard factors for the distribution cooperative calculated under paragraph 3 of this subsection by the corresponding average standard factors calculated under paragraph 2 of this subsection.
5. Add the six ratios calculated pursuant to paragraph 4 of this subsection, and divide that sum by six. The quotient is the standard market value factor.
C. For the purposes of this section, "investor-owned electric utility" means a business organization that provides electric power production and distribution, is regarded as a utility and is managed as a private enterprise rather than a function of a government or as a utility cooperative."
MICHELLE UGENTI |
C: LRH