ARIZONA STATE SENATE
Phoenix, Arizona
CORRECTED
residential utility consumer
office; functions
Purpose
Allows the Residential
Utility Consumer Office (RUCO) to represent ratepayers before federal
regulatory agencies, commissions and courts and requires the Director of RUCO
to adopt a consumer outreach and education program.
Background
Established in 1983, RUCO
serves as an advocate for residential consumers of public utilities in rate
hearings before the Arizona Corporation Commission (ACC). Thirty-eight other states and the District
of Columbia have similar utility ratepayer advocate offices. Of the 39 states,
32 allow their consumer advocate offices to represent ratepayers before federal
agencies, commissions and courts, such as the Federal Energy Regulatory
Commission (FERC) and the Federal Communications Commission (FCC).
RUCO currently does not have
the statutory authority to represent residential utility consumers before
federal agencies, commissions and courts.
However, with the onset of electric deregulation, RUCO has been invited
to participate in the development of deregulation implementation programs, such
as the Arizona Independent Scheduling Administrator Association and the Desert
Southwest Transmission and Reliability Operator, which are under the
jurisdiction of the FERC and ACC.
In addition, the FERC,
recognizing the regional, interstate character of the western marketplace, has
invited input from western state policymakers, including Arizona, to help shape
the design of the California wholesale electric market, which has impacts on
the Arizona market. Further, the FCC
imposes several charges on Arizona telephone bills, which, according to RUCO,
the Office would like to be involved with setting. S.B. 1048 provides RUCO with statutory authority to represent the
interests of residential utility consumers at rate hearings before federal
regulatory agencies, commissions and courts.
In response to electric
deregulation, RUCO has initiated a consumer outreach program, which includes a
speaker’s bureau, an informational campaign and the development and maintenance
of a web site on RUCO activities. S.B.
1048 expands the Director’s powers and duties to authorize a consumer outreach
and education program.
There is no anticipated
fiscal impact to the Residential Utility Consumer Office revolving fund
associated with this measure. The Joint
Legislative Budget Committee (JLBC) staff recommends as part of their budget recommendations
for FY 2002 and FY 2003 an additional FTE to support the consumer outreach and
education program and that RUCO absorb previously appropriated monies for the
program in the agency’s existing budget.
RUCO concurs with the budget recommendations of JLBC staff.
Provisions
1. Allows RUCO to represent the interests of residential utility consumers in proceedings before federal regulatory agencies, commissions and courts if those proceedings involve the interests of residential consumers of public service corporations under the ACC’s jurisdiction.
2. Allows the Director to represent and appeal for residential consumers at proceedings before federal regulatory agencies, commissions and courts if those proceedings involve the interests of residential consumers of public utilities under the ACC’s jurisdiction.
3. Requires the Director to adopt a consumer outreach and education program and allows the Director to present information relating to the research, study and analysis of residential utility consumer interests as part of that program.
4. Makes conforming changes.
5. Provides for a general effective date.
Prepared by Senate Staff
January 17, 2001