Official Summary Text
HB2782 - 572R - Senate Fact Sheet
Assigned to
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COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
FACT SHEET FOR
H.B. 2782
corporation
commission; utilities; amortization; tariffs
Purpose
Prescribes disclosure requirements for the Arizona Corporation Commission
(ACC) and public service corporations if a regulatory asset is included in rate
base or otherwise reflected in the rates based on a test year or historical
balance.
Background
Under the rules and regulations prescribed by the ACC, every public
service corporation must file with the ACC, and must print and keep open to
public inspection, schedules showing all rates, tolls, rentals, charges and
classifications to be collected or enforced, together with all rules,
regulations, contracts, privileges and facilities which in any manner affect or
relate to rates, tolls, rentals, classifications or service. The ACC may, from
time to time, approve or fix rates, tolls, rentals or charges in excess of or
less than those shown by the schedules. The ACC may also approve or fix rates,
tolls, rentals or charges that do not match with the schedules and prescribe
such changes, by order, in the form of the schedules that demonstrate expediency
(
A.R.S.
� 40-365
).
No change may be made by any public service corporation in any rate,
fare, toll, rental, charge or classification, or in any rule, regulation or
contract relating to or affecting any rate, toll, fare, rental, charge,
classification or service, or in any privilege or facility, except after 30
days' notice to the ACC and to the public. The notice must be given by filing
with the ACC and keeping open for public inspection new schedules stating
plainly the change to be made in the schedules then in force, and the time when
the change will go into effect. The ACC, for good cause shown, may allow
changes without requiring the 30 days' notice by an order specifying the
changes to be made, the time they will take effect and the manner in which they
will be filed and published (
A.R.S.
� 40-367
).
There is no anticipated fiscal impact to the state General Fund
associated with this legislation.
Provisions
1.
Requires
the ACC and a public service corporation, if a regulatory asset is included in
rate base or otherwise reflected in the rates based on a test year or
historical balance, to disclose:
a)
the unamortized balance of the regulatory asset as of the rate effective
date;
b)
the difference between the test year balance and the rate effective date
balance;
c)
the total amount of amortization expense expected to be recovered over
the period the rates are in effect; and
d)
if a
public service corporation's regulatory assets include either assets whose rate
base value remains fixed until the next rate case or assets whose rate base
value declines in proportion to the amortization of the unamortized balance,
the public service corporation must disclose the treatment applied to each
category of regulatory asset and indicate whether and how rate base will be
adjusted over time to reflect declining balances for the assets subject to such
adjustment.
2.
Specifies that nothing in the prescribed disclosure requirements
requires the ACC to adopt any particular adjustment mechanism, but the
prescribed disclosure requirements do require the ACC to ensure that the
disclosures are sufficient to compare the total amounts that will be recovered
in rates against the remaining unamortized balance of regulator asset.
3.
Contains a statement of legislative intent.
4.
Becomes effective on the general effective date.
House Action
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Prepared by
Senate Research
March 13, 2026
SB/hk
Current Bill Text
Read the full stored bill text
Chapter 0257 - 572R - H Ver of HB2782
House Engrossed
corporation
commission; utilities; amortization; tariffs
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 257
HOUSE BILL 2782
AN
ACT
amending title 40, chapter 2, article 7,
arizona revised statutes, by adding section 40-363; relating to utility
rate schedules.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 40, chapter 2, article 7,
Arizona Revised Statutes, is amended by adding section 40-363, to read:
START_STATUTE
40-363.
Commission; public utilities; establishing rates; fair value
A. If a regulatory asset is included
in rate base or otherwise reflected in rates based on a test year or historical
balance, The commission and
the public
service corporation shall
disclose all of the
following:
1. The UNAMORTIZED balance of the
REGULATORY asset as of the rate effective date.
2. The difference between the test
year balance and the rate effective date balance.
3. the
total
amount of amortization
expense expected to be recovered
over
the period the rates are in effect.
4. If a public service corporation's
regulatory assets include either assets whose rate base value remains fixed
until the next rate case or assets whose rate base value declines in proportion
to the amortization of
the Unamortized balance
, the public service corporation shall disclose the treatment applied
to each category of regulatory asset and indicate whether and how rate base
will be adjusted over time
to reflect declining balances
for the assets subject to such adjustment.
B. Nothing in this section requires
the commission to adopt any particular adjustment mechanism, but this section
does require the commission to ensure that the disclosures required by this
section are sufficient to compare the total amounts that will be recovered in
rates against the remaining unamortized balance
of
regulator asset.
END_STATUTE
Sec. 2.
Legislative intent
The legislature intends that the
corporation commission and public
service
corporations publicly post tariff schedules, including amortization schedules,
that impact rates as this provides the public with the ability to comment on
rate schedules that are set by the corporation commission.
APPROVED BY THE GOVERNOR JUNE 22, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 22, 2026.