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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
VETOED
residential utilities; consumer office; definition
Purpose
Defines represents the interests of as advocating for the safest and most reliable utility service achievable at the lowest retail rate possible.
Background
The Arizona Constitution establishes the Arizona Corporation Commission (ACC) and grants the ACC the power to prescribe just and reasonable classifications to be used and just and reasonable rates and charges to be made and collected by public service corporations (Ariz. Const. art. 15 § 3). To increase rates, a utility initiates the rate-making process by filing an application with the ACC. Upon deeming the application sufficient, the Residential Utility Consumer Office (RUCO) and other interested parties may intervene in the rate-making process on behalf of the utility consumers (RUCO).
RUCO is established to
represent the interests of residential utility consumers in regulatory
proceedings involving public service corporations before the ACC (A.R.S. § 40-462). The Director of RUCO can: 1) prepare and present briefs, arguments and proposed rates or orders; 2) intervene
or appear on behalf of residential utility consumers before hearing officers
and the ACC as a party in interest; and 3) participate
as a party in interest in proceedings relating to rate making or rate design
and involving public service corporations. The Director of RUCO can also employ
such attorneys as are required to represent the interests of residential
utility consumers (A.R.S.
§ 40-464).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Defines represents the interests of as advocating for the safest and most reliable utility service achievable at the lowest retail rate possible.
2. Makes technical changes.
3. Becomes effective on the general effective date.
Amendments Adopted by Committee
· Modifies the definition of represents the interest of to mean advocating for the safest and most reliable utility service achievable at the lowest retail rate possible, rather than the lowest retail electric rate possible.
Governor's Veto Message
The Governor indicates in her veto message that S.B. 1119 hampers the ability of RUCO to protect Arizona consumers and serve as a public defender in utility rate cases.
Senate Action House Action
NR 1/28/25 DPA 5-3-0 NREW 3/11/25 DP 5-4-0-1
3rd Read 2/26/25 17-12-1 3rd Read 3/25/25 37-21-2
Vetoed by the Governor 3/31/2025
Prepared by Senate Research
March 31, 2025
SB/SN/ci