How are electric rates set?
The Arizona Corporation Commission sets rates that provide the company a fair rate of return while balancing the needs of ratepayers. Rate cases are lengthy processes that begin with a company's application stating what they would like the new rate to
be along with supporting testimony as to why the increase is justified. Then the Commission staff and other interested parties begin examining and auditing all of the costs associated with providing service in Arizona. Rate cases typically involve
months of sworn testimony, audits and examinations to ensure the basis for the rate is legal and justified. Ultimately, the Commissioners vote on the rates in public Open Meetings.
We were notified that our electric company wants to change their rates. How can I have input on this?
You can always call the Arizona Corporation Commission and speak with a representative of our Consumer Services Section to find out
more information about the electric company's proposed rate increase. Your comments become part of the data that the Commissioners review prior to making their decision. Our staff can also assist you or your community with procedures for filing petitions,
arranging for a public comment session or providing information on becoming an official party to the case (called "intervention").
Click here for a Public Utilities Comment Form
Click here for an Intervention Guideline Form
Can I choose another electric service provider?
Yes and no. If you are a customer of Tucson Electric Power, Arizona Public Service, Ajo Improvement Authority or Navopache Electric Cooperative, competition is allowed in your area. Those
service areas have been opened for competition, along with Salt River Project's territory (
the ACC does not regulate the Salt River Project
). But there's more to the equation than just opening a territory to competition. Once you open an area, then you have to wait for alternative
providers to state that they wish to serve customers in that area. Although the Arizona Corporation Commission has granted certificates to several providers, none of these providers are offering competitive residential or small commercial service in Arizona yet. So for all practical purposes, consumers do not yet have a choice of providers.
Under the old regulatory regime, a company got a certificate to serve any and all customers within a certain geographic area. Now, with the advent of electric competition, those geographic boundaries are no longer the sole determining factor of what company
can serve customers.
Click here for a current list of Electric Service Providers.
Did California's deregulation problems change anything here?
Yes. Because the Arizona Corporation Commission has a duty to balance the needs of ratepayers with the needs of the utilities serving the state, the Commission is taking
another look at electric competition. There are several aspects being examined through an open, collaborative process. Consumer groups, industry representatives and the Commissioners are working to ensure that utility customers do not experience problems
during the transition to competition. The goal is to avoid any of the pricing, structure or power supply problems that our neighbors to the west experienced. Several important changes may be made before all is said and done. Keep watching this area for