Current through Register Vol. 30, No. 38, September 20, 2024
A. Any Electric Service Provider intending to
supply Competitive Services shall obtain a Certificate of Convenience and
Necessity from the Commission pursuant to this Article. An Affected Utility
need not apply for a Certificate of Convenience and Necessity to continue to
provide electric service in its service area during the transition period set
forth in
R14-2-1604. A
Utility Distribution Company providing Standard Offer Service, or services
authorized in
R14-2-1615,
after January 1, 2001, need not apply for a Certificate of Convenience and
Necessity. All other Affected Utility affiliates created in compliance with
R14-2-1615(A)
shall be required to apply for appropriate Certificates of Convenience and
Necessity.
B. Any company desiring
such a Certificate of Convenience and Necessity shall file with the Docket
Control Center the required number of copies of an application. In support of
the request for a Certificate of Convenience and Necessity, the following
information must be provided:
1. A
description of the electric services that the applicant intends to
offer;
2. The proper name and
correct address of the applicant, and
a. The
full name of the owner if a sole proprietorship,
b. The full name of each partner if a
partnership,
c. A full list of
officers and directors if a corporation, or
d. A full list of the members if a limited
liability corporation;
3. A tariff for each service to be provided
that states the maximum rate and terms and conditions that will apply to the
provision of the service;
4. A
description of the applicant's technical ability to obtain and deliver
electricity if appropriate and to provide any other proposed
services;
5. Documentation of the
financial capability of the applicant to provide the proposed services,
including the most recent income statement and balance sheet, the most recent
projected income statement, and other pertinent financial information. Audited
information shall be provided if available;
6. A description of the form of ownership
(for example, partnership, corporation);
7. For an applicant that is an affiliate of
an Affected Utility, a statement of whether the Affected Utility has complied
with the requirements of
R14-2-1616,
including the Commission Decision approving the Code of Conduct, where
applicable; and
8. Such other
information as the Commission or the staff may request.
C. The applicant shall report in a timely
manner during the application process any changes in the information initially
reported to the Commission in the application for a Certificate of Convenience
and Necessity.
D. The applicant
shall provide public notice of the application as required by the
Commission.
E. At the time of
filing for a Certificate of Convenience and Necessity, each applicant shall
notify the Affected Utilities, Utility Distribution Companies, or an electric
utility not subject to the jurisdiction of the Arizona Corporation Commission
in whose service territories it wishes to offer service of the application by
providing a copy of the application to the Affected Utilities, Utility
Distribution Companies, or an electric utility not subject to the jurisdiction
of the Arizona Corporation Commission. No later than 10 days after application
is filed, each applicant shall provide written notice to the Commission,
through Docket Control, that it has provided notification to each of the
respective Affected Utilities, Utility Distribution Companies, or an electric
utility not subject to the jurisdiction of the Arizona Corporation Commission.
The attachment to the CC&N application should include a listing of the
names and addresses of the notified Affected Utilities, Utility Distribution
Companies or an electric utility not subject to the jurisdiction of the Arizona
Corporation Commission.
F. The
Commission may issue a Certificate of Convenience and Necessity that is
effective for a specified period of time if the applicant has limited or no
experience in providing the retail electric service that is being requested. An
applicant receiving such approval shall have the responsibility to apply for
appropriate extensions.
G. The
Commission may deny certification to any applicant who:
1. Does not provide the information required
by this Article;
2. Does not
possess adequate technical or financial capabilities to provide the proposed
services;
3. Seeks certification as
a Load-Serving Entity and does not have an Electric Service Provider Service
Acquisition Agreement with a Utility Distribution Company and Scheduling
Coordinator, if the applicant is not its own Scheduling Coordinator;
4. Fails to provide a performance bond, if
required;
5. Fails to demonstrate
that its certification will serve the public interest;
6. Seeks certification as a Load-Serving
Entity and fails to submit an executed Service Acquisition Agreement with a
Utility Distribution Company or a Scheduling Coordinator for approval by the
Director, Utilities Division, prior to the offering of service to potential
customers. Agreements are to be filed with the Compliance Section, Utilities
Division.
H. A Request
for approval of an executed Service Acquisition Agreement may be included with
an application for a Certificate of Convenience and Necessity. In all
negotiations relative to Service Acquisition Agreements, Affected Utilities or
their successor entities are required to negotiate in good faith.
I. Every Electric Service Provider obtaining
a Certificate of Convenience and Necessity under this Article shall obtain
certification subject to the following conditions:
1. The Electric Service Provider shall comply
with all Commission rules, orders, and other requirements relevant to the
provision of electric service;
2.
The Electric Service Provider shall maintain accounts and records as required
by the Commission;
3. The Electric
Service Provider shall file with the Director, Utilities Division, through the
Compliance Section, all financial and other reports that the Commission may
require and in a form and at such times as the Commission may
designate;
4. The Electric Service
Provider shall maintain on file with the Commission all current tariffs and any
service standards that the Commission shall require;
5. The Electric Service Provider shall
cooperate with any Commission investigation of customer complaints;
6. The Electric Service Provider shall obtain
all necessary permits and licenses, including relevant tax licenses;
7. The Electric Service Provider shall comply
with all disclosure requirements pursuant to
R14-2-1617;
8. Failure to comply with any of the above
conditions may result in rescission of the Electric Service Provider's
Certificate of Convenience and Necessity.
J. In appropriate circumstances, the
Commission may require, as a precondition to certification, the procurement of
a performance bond sufficient to cover any advances or deposits the applicant
may collect from its customers, or order that such advances or deposits be held
in escrow or trust.
K. Time-frames
for processing applications for Certificates of Convenience and Necessity
1. This rule prescribes time-frames for the
processing of any application for a Certificate of Convenience and Necessity
issued by the Arizona Corporation Commission pursuant to this Article. These
time-frames shall apply to applications filed on or after the effective date of
this rule.
2. Within 120 calendar
days after receipt of an application for a new Certificate of Convenience and
Necessity, or to amend or change the status of any existing Certificate of
Convenience and Necessity, staff shall notify the applicant, in writing, that
the application is either administratively complete or deficient. If the
application is deficient, the notice shall specify all deficiencies.
3. Staff may terminate an application if the
applicant does not remedy all deficiencies within 60 calendar days of the
notice of deficiency.
4. After
receipt of a corrected application, staff shall notify the applicant within 90
calendar days if the corrected application is either administratively complete
or deficient. The time-frame for administrative completeness review shall be
suspended from the time the notice of deficiency is issued until staff
determines that the application is complete.
5. Within 180 calendar days after an
application is deemed administratively complete, the Commission shall approve
or reject the application.
6. For
purposes of A.R.S. §
41-1072,
et seq., the Commission has established the following time-frames:
a. Administrative completeness review
time-frame: 120 calendar days;
b.
Substantive review time-frame: 180 calendar days;
c. Overall time-frame: 300 calendar
days.
7. If an applicant
requests, and is granted, an extension or continuance, the appropriate
time-frames shall be tolled from the date of the request during the duration of
the extension or continuance.
8.
During the substantive review time-frame, the Commission may, upon its own
motion or that of any interested party to the proceeding, request a suspension
of the time-frame rules.
The Arizona
Corporation Commission has determined that the following Section is exempt from
the Attorney General approval provisions of the Arizona Administrative
Procedure Act (A.R.S. § 41-1041) by a court order (State ex. rel. Corbin
v. Arizona Corporation Commission, 174 Ariz. 216 848 P.2d 301 (App.
1992)).
