ARIZONA STATE SENATE
Phoenix, Arizona
REVISED
residential utility consumer
office; functions
Purpose
Allows the Residential
Utility Consumer Office (RUCO) to represent residential utility consumers at
regulatory hearings before federal regulatory agencies and commissions where
rates are established and federal court proceedings involving rates, tariffs,
changes or terms of service, 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 hearings before federal
regulatory agencies and commissions where rates are established and federal
court proceedings involving rates, tariffs, charges or terms of service.
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 and commissions where rates are established and federal court proceedings involving rates, tariffs, changes or terms of service if those proceedings involve the interests of residential consumers of public service corporations under the ACC’s jurisdiction.
2. Allows the Director, in consultation with the Governor, to represent and appeal for residential consumers at proceedings before federal regulatory agencies and commissions anywhere rates are established and federal court proceedings involving rates, tariffs, charges or terms of service if those proceedings involve the interests of residential consumers of public utilities under the ACC’s jurisdiction. Prohibits the Director from participating in such proceedings that involve a member-owned nonprofit cooperative corporation.
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.
Amendments
Adopted by Committee
1. Requires that Ruche's intervention at the federal level be exercised in consultation with the Governor and that it be exercised at federal agencies where rates are established and federal court proceedings involving rates, tariffs, charges or terms of service.
2. Prohibits the Director of RUCO from participating in such proceedings at the federal level that involve a member-owned nonprofit cooperative corporation.
Senate Action
COM 1/31/01 DPA 6-0-0-0
Prepared by Senate Staff
January 31, 2001