The bill amends section 40-209 of the Arizona Revised Statutes, focusing on the regulation of electricity suppliers providing electric generation service. Under current law, cities, towns, and counties cannot require franchises or impose rents, charges, or taxes on electricity suppliers for providing electric generation service within their jurisdiction. However, they may charge a fee equivalent to the franchise fee of the electric distribution utility for any retail electricity sales not otherwise subject to a franchise fee, specifically for sales made using electric distribution facilities in franchised service territories as of August 20, 1998.

The new bill language clarifies that the prohibition on requiring franchises and imposing fees applies specifically to electric generation service, while maintaining the authority of local governments to require franchises for electricity suppliers providing electric distribution service. This distinction emphasizes the separation between generation and distribution services, ensuring that local jurisdictions retain control over distribution while limiting their ability to impose fees on generation services.

Statutes affected:
Introduced Version: 40-209