Phoenix, Ariz.— During the week of September 23, 2024, Commissioner Nick Myers traveled to Washington, D.C. to meet with commissioners and staff of the Federal Energy Regulatory Commission (FERC) in Washington, D.C. to discuss their experience with using formula rates. 

Immediately upon taking office in 2023, Commissioner Myers opened a docket (AU-00000A-23-0012) to explore possible modifications to the Arizona Corporation Commission’s Test Year Rules. The Commission currently uses a historical test year but is exploring the possibility of using different or additional methods like a hybrid or future test year or formula rates. The Commission held its first workshop on the topic on March 19, 2024, with a second workshop scheduled for October 3, 2024.

“My discussions of formula rates with FERC commissioners, directors, and staff from various departments was invaluable as I continue to evaluate this approach,” stated Commissioner Myers, “From my multiple conversations, it appears formula rates would improve regulatory lag, promote gradualism, and reduce the burden on our Arizona Commission staff; however, I would need stronger customer protections like annual true-ups and periodic mandatory rate cases for me to support the idea of Arizona utilities using formula rates.”  

For more information, please contact Amanda Hasty at myers-web@azcc.gov