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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
AMENDED
corporation commission; electric generation resources.
Purpose
Prohibits the Arizona Corporation Commission (ACC) from regulating the types of electric generation resources used or acquired by public service corporations, applicable to policies, decisions or rules adopted beginning June 30, 2020.
Background
The Arizona Constitution establishes the ACC to regulate public service corporations, facilitate the incorporation or organization of companies under Arizona law, oversee railroad and pipeline safety, and regulate the sale of securities. The ACC is composed of five commissioners who are elected at the general election to four-year terms, subject to a limit of two consecutive terms. The Arizona Constitution authorizes the Legislature to prescribe commissioner qualifications by law (Ariz. Const. art. 15).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits the ACC from adopting or enforcing a policy, decision or rule that directly or indirectly regulates the types of critical electric generation resources used or acquired by public service corporations within Arizona's energy grid without express legislative authorization.
2. Specifies that the prohibition does not apply to the ACC exercising its ratemaking authority or to any policy, decision or rule adopted before June 30, 2020.
3. Defines critical electric generation resources as any generation resource used or acquired by a public service corporation, including solar, wind, biomass, geothermal, nuclear, hydroelectric, fuel-cell technology, natural gas or coal or any other petroleum fuel source.
4. Contains a statement of legislative findings.
5. Becomes effective on the general effective date, retroactive to June 29, 2020.
Amendments Adopted by Committee
· Replaces the specification that this legislation does not prohibit the ACC from setting electricity rates with a specification that this legislation does not prohibit the ACC from exercising its ratemaking authority.
Senate Action
NREW 1/27/21 DPA 5-4-0
Prepared by Senate Research
January 28, 2021
KN/gs