Official Summary Text
HB2113 - 572R - Senate Fact Sheet
Assigned to
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COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
REVISED
FACT SHEET FOR
H.B. 2113
public service
corporation; rates; intervenor
Purpose
Requires the Director of the Residential Utility Consumer
Office (RUCO) to intervene in a public service corporation rate case if the
impact of the public service corporation's proposed rate increase to
residential customers is 100 percent or more.
Background
The rates
charged by Arizona's investor-owned utilities are established by the Arizona
Corporation Commission (ACC). The ACC authorizes a utility to charge rates
which will recover expenditures that are appropriate and prudently incurred and
also provides an opportunity to earn a fair return on the utility's capital
investment. A utility initiates the process to obtain a rate increase by filing
an application with the ACC. The application must be based on a test year of
actual expenses and investments during a recent 12-month period. All the
utility's cost data are drawn from its own records. The ACC requires the
utilities to follow a standardized system of accounting procedures that assures
that the data can be easily reviewed and verified by the ACC, RUCO and others (
RUCO
).
The Director of
RUCO may: 1) research, study and analyze residential utility consumer interests;
2) prepare and present briefs, arguments, proposed rates or orders and
intervene or appear on behalf of residential utility consumers before hearing
officers and the ACC as a party in interest and also participate as a party in
interest in proceedings relating to rate making or rate design and involving
public service corporations; 3) make and execute contracts and other
instruments as necessary to perform the Director of RUCO's duties: 4) hire
employees as necessary for prescribed purposes; and 5) employ such attorneys as
are required to represent the interests of residential utility consumers. The
Director of RUCO must adopt administrative rules necessary to carry out RUCO's statutorily
prescribed powers and duties. RUCO may advise the consumer of other agencies
that may be of further assistance and must refer the consumer to the ACC
Utilities Division (
A.R.S.
� 40-464
).
The Joint Legislative Budget Committee
(JLBC) fiscal note estimates that H.B. 2113 would result in an increase in
costs to the RUCO Revolving Fund associated with a larger caseload for RUCO. RUCO
testified in the Senate Natural Resources Committee that the bill would
increase their costs by $2 million, create an additional 16 cases and require
13 additional FTE positions.
JLBC has requested supporting written
documentation of the cost projection RUCO provided in testimony but has not yet
received a response and therefore is not able to comment on the validity of
RUCO's estimate
(
JLBC fiscal note
).
Provisions
1.
Requires the Director of RUCO to intervene in a public service
corporation rate case if the impact of the public service corporation's
proposed rate increase to residential customers is 100 percent or more.
2.
Makes technical changes
3.
Becomes effective on the general effective date.
Revisions
�
Updates the fiscal impact statement.
House Action
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Prepared by Senate Research
April 8, 2026
SB/NRG/hk
Current Bill Text
Read the full stored bill text
HB2113 - 572R - H Ver
House Engrossed
public service
corporation; rates; intervenor
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2113
AN
ACT
amending section 40-464, arizona
revised statutes; relating to the residential utility consumer office.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Section 40-464, Arizona Revised
Statutes, is amended to read:
START_STATUTE
40-464.
Powers and duties
A. The director may:
1. Research, study and analyze residential utility
consumer interests.
2. Prepare and present briefs, arguments, proposed
rates or orders and intervene or appear on behalf of residential utility
consumers before hearing officers and the corporation commission as a party in
interest and also participate as a party in interest pursuant to sections 40-254
and 40-254.01 in proceedings relating to rate making or rate design and
involving public service corporations, except that the director shall not
participate in any proceedings pursuant to this paragraph involving a member-owned
nonprofit cooperative corporation.
3. Make and execute contracts and other instruments
as necessary to perform
his
the director's
duties.
4. Hire employees subject to title 41, chapter 4,
article 4 as necessary to carry out this article and contract for special
services as needed.
5. Employ such attorneys as are required to
represent the interests of residential utility consumers.
B. The director shall adopt administrative rules
necessary to carry out the purposes of this article.
C. All contacts by residential utility consumers
with regard to quality or quantity of service provided by a public service
corporation shall be recorded by the office for the purpose of determining
general concerns of consumers.� The office may advise the consumer of other
agencies that may be of further assistance and shall refer the consumer to the
corporation commission utilities division consumer services section established
in
by
section 40-110.
D. The director shall intervene in a
public service corporation rate case if the impact of the public service
corporation's proposed rate increase to residential customers is one hundred
percent or more.
END_STATUTE