The proposed bill would amend current statutes by adding a new section to Title 40, Chapter 2, Article 7 of the Arizona Revised Statutes, specifically Section 40-363. This new section mandates that if a regulatory asset is included in the rate base or reflected in rates based on a test year or historical balance, both the Arizona Corporation Commission (ACC) and public service corporations must disclose specific information. This includes the unamortized balance of the regulatory asset as of the rate effective date, the difference between the test year balance and the rate effective date balance, the total amount of amortization expense expected to be recovered, and details on how the rate base will be adjusted over time for certain regulatory assets.

Additionally, the bill clarifies that the ACC is not required to adopt any specific adjustment mechanism but must ensure that the disclosures are adequate for comparing the total amounts to be recovered in rates against the remaining unamortized balance of the regulatory asset. The legislation also expresses the intent for the ACC and public service corporations to publicly post tariff schedules, including amortization schedules, to enhance public engagement and transparency regarding rate-setting processes.

Statutes affected:
Introduced Version: 40-363
House Engrossed Version: 40-363