HB2440

THE CONTEXT: Public service corporations are private, investor-owned utilities that provide a variety of services to customers such as telephone, water, electricity and sewer service ( Constitution of Arizona, Article 15, 2 ). The Arizona Corporation Commission oversees public service corporations by prescribing rules, regulations and orders that govern these corporation's rates, charges and classifications, which is collectively referred to as its "ratemaking authority.

WHAT THE BILL DID: The final vetoed version would direct public power entities and public service corporations to conduct infrastructure planning and investments to maintain reliable and affordable electric service, require a public power entity's governing board to provide electric service at just and reasonable rates, and require a public service corporation to provide electric service at just and reasonable rates as determined by the Arizona Corporation Commission.

WHY IT MATTERED: The practical reason for this bill was to turn the Legislature's standard for electric energy into an enforceable rule. It would direct public power entities and public service corporations to conduct infrastructure planning and investments to maintain reliable and affordable electric service, and would also require a public power entity's governing board to provide electric service at just and reasonable rates, rather than leave the current rule unchanged.