ARIZONA STATE SENATE
Phoenix, Arizona
residential utility consumer
office; functions
Purpose
Allows the Residential Utility Consumer Office (RUCO), in consultation with the Governor, to represent residential 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). Forty-one other states and the District of
Columbia have similar utility ratepayer advocate offices. Of the 41 states, 24 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 be involved in the development of deregulation implementation programs, such
as the Arizona Independent Scheduling Administrator Association and West
Connect, which are under the jurisdiction of FERC and ACC.
In addition, FERC has
invited input from western state policymakers, including RUCO, 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. 1101 provides RUCO with statutory authority to represent the
interests of residential utility consumers at rate hearings before federal
regulatory agencies and commissions where rates are established and federal
court proceedings involving rates, tariffs, charges or terms of service.
The agency is also seeking
statutory authority for a consumer outreach program initiated in response to
electric deregulation, which includes a speaker’s bureau, an informational
campaign and the development and maintenance of a web site on RUCO
activities. S.B. 1101 expands the
Director’s powers and duties to authorize a consumer outreach and education
program.
There is no anticipated
fiscal impact, to either the state general fund or the residential utility
consumer office revolving fund from which RUCO establishes its budget,
associated with this measure.
Provisions
1. Allows RUCO to represent the interests of residential ratepayers before federal regulatory agencies, commissions and courts if those proceedings involve a rate, tariff, charge or term of service and the interests of residential utility consumers.
2. Allows the Director, in consultation with the Governor, to represent and appeal for residential ratepayers before federal regulatory agencies, commissions and courts if those proceedings involve a rate, tariff, charge or term of service and the interests of residential utility consumers.
3. Prohibits the Director from participating in proceedings with federal regulatory agencies, commissions and courts that involve a member-owned nonprofit cooperative corporation.
4. 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 the program.
5. Makes conforming changes.
6. Provides for a general effective date.
Prepared by Senate Staff
January 25, 2002