Current through Register Vol. 30, No. 38, September 20, 2024
A. On the date its service area is open to
competition under
R14-2-1602,
each Affected Utility or Utility Distribution Company shall make available
Standard Offer Service and Noncompetitive Services at regulated rates. After
January 1, 2001, Standard Offer Service and Noncompetitive Services shall be
provided by Utility Distribution Companies who shall also act as Providers of
Last Resort.
B. After January 1,
2001, power purchased by an investor owned Utility Distribution Company for
Standard Offer Service shall be acquired from the competitive market through
prudent, arm's length transactions, and with at least 50% through a competitive
bid process.
C. Standard Offer
Tariffs
1. By July 1, 1999, or pursuant to
Commission Order, whichever occurs first, each Affected Utility shall file
proposed tariffs to provide Standard Offer Service. Such rates shall not become
effective until approved by the Commission. Any rate increase proposed by an
Affected Utility or Utility Distribution Company for Standard Offer Service
must be fully justified through a rate case proceeding.
2. Standard Offer Service tariffs shall
include the following elements, each of which shall be clearly unbundled and
identified in the filed tariffs:
a.
Competitive Services:
i. Generation, which
shall include all transaction costs and line losses;
ii. Competition Transition Charge, which
shall include recovery of generation related regulatory assets;
iii. Generation-related billing and
collection;
iv. Transmission
Services;
v. Metering
Services;
vi. Meter Reading
Services; and
vii. Optional
Ancillary Services, which shall include spinning reserve service, supplemental
reserve, regulation and frequency response service, and energy imbalance
service.
b.
Non-Competitive Services:
i. Distribution
services;
ii. Required Ancillary
services, which shall include scheduling, system control and dispatch service,
and reactive supply and voltage control from generation sources
service;
iii. Must-Run Generating
Units;
iv. System Benefit Charges;
and
v. Distribution-related billing
and collection.
3. Affected Utilities and Utility
Distribution Companies may file proposed revisions to such rates with the
Commission through Docket Control. Any rate increase proposed by an Affected
Utility or Utility Distribution Company for Standard Offer Service must be
fully justified through a rate case proceeding, which may be expedited at the
discretion of the Utilities Division Director.
4. Such rates shall reflect the costs of
providing the service.
5. Consumers
receiving Standard Offer Service are eligible for potential future rate
reductions as authorized by the Commission.
6. After January 2, 2001, tariffs for
Standard Offer Service shall not include any special discounts or contracts
with terms, or any tariff that prevents the customer from accessing a
competitive option, other than time-of-use rates, interruptible rates, or
self-generation deferral rates.
D. By the effective date of these rules, or
pursuant to Commission Order, whichever occurs first, each Affected Utility or
Utility Distribution Company shall file an Unbundled Service tariff that shall
include a Noncompetitive Services tariff. The Unbundled Service tariff shall
calculate the items listed in
R14-2-1606(C)(2)(b)
on the same basis as those items are calculated in the Standard Offer Service
tariff.
E. To manage its risks, an
Affected Utility or Electric Service Provider may include in its tariffs
deposit requirements and advance payment requirements for Unbundled
Services.
F. Affected Utilities and
Utility Distribution Companies must accept power and energy delivered to their
distribution systems by other Load-Serving Entities and offer distribution and
distribution-related ancillary services comparable to services they provide to
themselves at their Noncompetitive Services tariffed rates.
G. Customer Data
1. Upon written authorization by the
customer, a Load-Serving Entity shall release in a timely and useful manner
that customer's billing data, including consumption, demand, and power factor
(if available), for the most recent 12-month period to a customer-specified
properly certificated Electric Service Provider.
2. The Electric Service Provider requesting
such customer data shall provide an accurate account number for the
customer.
3. The form of data shall
be mutually agreed upon by the parties and such data shall not be unreasonably
withheld.
4. Utility Distribution
Companies shall be allowed access to the Meter Reading Service Provider server
for customers served by the Utility Distribution Company's distribution
system.
H. Rates for
Unbundled Services
1. The Commission shall
review and approve rates for Competitive Services and Noncompetitive Services
subject to Commission jurisdiction, before such services can be
offered.
2. Such rates shall
reflect the costs of providing the services.
3. Such rates may be downwardly flexible if
approved by the Commission.
I. Electric Service Providers offering
Competitive Services under this
R14-2-1606
shall provide adequate supporting documentation for their proposed rates. Where
rates are approved by another jurisdiction, such as the Federal Energy
Regulatory Commission, those rates shall be provided as part of the supporting
documentation.
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)).
