Energy Choice Matters: Arizona Introduces Draft Limited Retail Electric Choice Rules

Staff of the Arizona Corporation Commission (ACC) have filed a report regarding "possible" modifications to the ACC's retail electric competition rules. Under the draft rules, customers eligible for retail electric choice would be defined only as all non-residential consumers who use more than 100 kW demand monthly.

The draft would allow for Community Choice Aggregation (CCA), also known as municipal aggregation. A CCA is defined under the draft as a program that allows local governments to "procure" power on behalf of their "residents, businesses, and municipal accounts," from an alternative supplier while still receiving transmission and distribution service from their incumbent utility. The draft recommends CCAs be allowed in Arizona only for municipalities.

As a result of Phelps Dodge and the ACC's constitutional mandate, the daft would strike the provision in the legacy rules which states that a retail supplier's market rates shall be deemed just and reasonable. Instead, each Electric Service Provider (retail supplier) would be required to have on file with the Commission tariffs describing the minimum, current and maximum rates for its services, and the services may not be provided until the Commission has approved the tariffs.