ARIZONA STATE SENATE
Phoenix, Arizona
ballot measures; publicity
pamphlet
(NOW: residential utility
consumer office; authority)
Allows the Residential Utility Consumer Office (RUCO) to represent consumer interests before federal courts, regulatory agencies and commissions that establish rates if the proceedings involve a rate, tariff, charge or term of service and the interests of residential utility consumers, and requires the Director of RUCO to adopt a consumer outreach and education program. Repeals the statutes relating to the Residential Utility Consumer Board (Board).
Established in 1983, RUCO serves as an advocate for residential consumers of public utilities in rate hearings before the Arizona Corporation Commission (ACC). Of 39 states with similar utility ratepayer advocate offices, 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 several deregulation implementation programs under the jurisdiction of the FERC and the ACC. In addition, the FERC has invited input from western state policymakers, including Arizona, to help shape the design of the California wholesale electric market, which will impact the Arizona market. Further, the FCC imposes several charges on Arizona telephone bills, which RUCO would like to be involved with setting. H.B. 2418 expands the statutory authority of RUCO to represent, in consultation with the Governor, consumers interests at hearings before federal regulatory agencies and commissions where rates are established and federal court proceedings involving rates, tariffs, charges or terms of service and the interests of residential utility consumers.
In response to electric deregulation, RUCO has initiated a consumer outreach program. H.B. 2418 expands the Director’s powers and duties to formalize the education and outreach activities that are currently being performed.
In 1999, the Office of the Auditor General (OAG) conducted a performance audit of both RUCO and the Board. In its findings, the OAG found RUCO is often successful at having its position adopted by the ACC and limiting rate increases for residential consumers. The audit report also included a finding that the Board has not effectively fulfilled the requirements of its statutory mandates.
During the 2000 legislative session, H.B. 2239 was passed by the Legislature and signed by the Governor (Chapter 325) continuing RUCO for ten years, while the bill continuing the Board was held in the House of Representatives, effectively terminating the Board. As they are no longer necessary. H.B. 2418 removes all statutory references to the Board.
H.B. 2418 consists of the provisions of S.B. 1048 and S.B. 1049, as passed by the Senate.
There is no
anticipated fiscal impact to the state general fund associated with this
measure. According to a fiscal note
prepared by the Joint Legislative Budget Committee, any costs arising from
RUCO’s expanded authority will be incurred in currently budgeted
activities. RUCO has indicated that it
does not believe any additional costs will result from the measure and does not
have any intention of requesting additional resources for the activities.
Provisions
1. Allows RUCO to represent consumer interests in proceedings before federal regulatory agencies and commissions where rates are established and federal court proceedings involving rates, tariffs, charges or terms of service and the interests of residential consumers furnished by 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 such proceedings before federal regulatory agencies, commissions and courts. 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. Repeals statutes related to the Board.
5. Makes technical and conforming changes.
6. Provides for a general effective date.
Amendments
Adopted by Committee
1. Adopted the strike everything amendment.
Senate Action House Action
GOV 4/9/01 DPA/SE 6-0-0-0 JUD 1/23/01 DP 10-0-0-0
3rd Read 4/17/01 29-0-1-0 3rd Read 2/12/01 53-3-4-0
Prepared by Senate Staff
April 17, 2001