Arizona Administrative Code › Title 14 - PUBLIC SERVICE CORPORATIONS; CORPORATIONS AND ASSOCIATIONS; SECURITIES REGULATION › Chapter 2 - CORPORATION COMMISSION - FIXED UTILITIES › Article 16 - RETAIL ELECTRIC COMPETITION › Section R14-2-1601 - Definitions

Current through Register Vol. 30, No. 28, July 12, 2024
In this Article, unless the context otherwise
				  requires:
1. "Affected Utilities" means the following public service
				  corporations providing electric service:
Tucson Electric Power Company, Arizona Public Service
				  Company, Citizens Utilities Company, Arizona Electric Power Cooperative, Trico
				  Electric Cooperative, Duncan Valley Electric Cooperative, Graham County
				  Electric Cooperative, Mohave Electric Cooperative, Sulphur Springs Valley
				  Electric Cooperative, Navopache Electric Cooperative, Ajo Improvement Company,
				  and Morenci Water and Electric Company.
2. "Aggregation" means the combination and consolidation of
				  loads of multiple customers.
3. "Aggregator" means an Electric Service Provider that, as
				  part of its business, combines retail electric customers into a purchasing
				  group.
4. "Ancillary Services" means those services designated as
				  ancillary services in Federal Energy Regulatory Commission Order 888, including
				  the services necessary to support the transmission of electricity from resource
				  to load while maintaining reliable operation of the transmission system in
				  accordance with good utility practice.
5. "Bundled Service" means electric service provided as a
				  package to the consumer including all generation, transmission, distribution,
				  ancillary and other services necessary to deliver and measure useful electric
				  energy and power to consumers.
6. "Competition Transition Charge" (CTC) is a means of
				  recovering Stranded Costs.
7. "Competitive Services" means all aspects of retail
				  electric service except those services specifically defined as "Noncompetitive
				  Services" pursuant to
				  R14-2-1601(29)
				  or noncompetitive services as defined by the Federal Energy Regulatory
				  Commission.
8. "Consumer Education" is the provision of impartial
				  information to consumers about competition or Competitive and Noncompetitive
				  Services and is distinct from advertising and marketing.
9. "Control Area Operator" is the operator of an electric
				  system or systems, bounded by interconnection metering and telemetry, capable
				  of controlling generation to maintain its interchange schedule with other such
				  systems and contributing to frequency regulation of the interconnection.
10. "Current Transformer" (CT) is an electrical device used
				  in conjunction with an electric meter to provide a measurement of energy
				  consumption for metering purposes.
11. "Delinquent Accounts" means customer accounts with
				  outstanding past-due payment obligations that remain unpaid after the due
				  date.
12. "Direct Access Service Request" (DASR) means a form that
				  contains all necessary billing and metering information to allow customers to
				  switch electric service providers. This form must be submitted to the Utility
				  Distribution Company by the customer's Electric Service Provider.
13. "Distribution Primary Voltage" is voltage as defined
				  under the Affected Utility's Federal Energy Regulatory Commission (FERC) Open
				  Access Transmission Tariff, except for Meter Service Providers, for which
				  Distribution Primary Voltage is voltage at or above 600 volts (600V) through
				  and including 25 kilovolts (25 kV).
14. "Distribution Service" means the delivery of electricity
				  to a retail consumer through wires, transformers, and other devices that are
				  not classified as transmission services subject to the jurisdiction of the
				  Federal Energy Regulatory Commission; Distribution Service excludes Metering
				  Services, Meter Reading Services, and billing and collection services, as those
				  terms are used herein.
15. "Electric Service Provider" (ESP) means a company
				  supplying, marketing, or brokering at retail any Competitive Services pursuant
				  to a Certificate of Convenience and Necessity.
16. "Electric Service Provider Service Acquisition Agreement"
				  or "Service Acquisition Agreement" means a contract between an Electric Service
				  Provider and a Utility Distribution Company to deliver power to retail end
				  users or between an Electric Service Provider and a Scheduling Coordinator to
				  schedule transmission service.
17. "Electronic Data Interchange" (EDI) is the
				  computer-to-computer electronic exchange of business documents using standard
				  formats which are recognized both nationally and internationally.
18. "Generation" means the production of electric power or
				  contract rights to the receipt of wholesale electric power.
19. "Green Pricing" means a program offered by an Electric
				  Service Provider where customers elect to pay a rate premium for renewable
				  generated electricity.
20. "Independent Scheduling Administrator" (ISA) is an
				  entity, independent of transmission-owning organizations, intended to
				  facilitate nondiscriminatory retail direct access using the transmission system
				  in Arizona.
21. "Independent System Operator" (ISO) is an independent
				  organization whose objective is to provide nondiscriminatory and open
				  transmission access to the interconnected transmission grid under its
				  jurisdiction, in accordance with the Federal Energy Regulatory Commission
				  principles of independent system operation.
22. "Load Profiling" is a process of estimating a customer's
				  hourly energy consumption based on measurements of similar customers.
23. "Load-Serving Entity" means an Electric Service Provider,
				  Affected Utility, or Utility Distribution Company, excluding a Meter Service
				  Provider, and Meter Reading Service Provider.
24. "Meter Reading Service" means all functions related to
				  the collection and storage of consumption data.
25. "Meter Reading Service Provider" (MRSP) means an entity
				  providing Meter Reading Service, as that term is defined herein and that reads
				  meters, performs validation, editing, and estimation on raw meter data to
				  create billing-ready meter data; translates billing-ready data to an approved
				  format; posts this data to a server for retrieval by billing agents; manages
				  the server; exchanges data with market participants; and stores meter data for
				  problem resolution.
26. "Meter Service Provider" (MSP) means an entity providing
				  Metering Service, as that term is defined herein.
27. "Metering and Metering Service" means all functions
				  related to measuring electricity consumption.
28. "Must-Run Generating Units" are those local generating
				  units that are required to run to maintain distribution system reliability and
				  to meet load requirements in times of congestion on certain portions of the
				  interconnected transmission grid.
29. "Net Metering" or "Net Billing" is a method by which
				  customers can use electricity from customer-sited solar electric generators to
				  offset electricity purchased from an Electric Service Provider. The customer
				  only pays for the "Net" electricity purchased.
30. "Noncompetitive Services" means Distribution Service,
				  Standard Offer Service, transmission, and any ancillary services deemed to be
				  non-competitive by the Federal Energy Regulatory Commission, Must-Run
				  Generating Units services, provision of customer demand and energy data by an
				  Affected Utility or Utility Distribution Company to Electric Service Providers,
				  and those aspects of Metering Service set forth in
				  R14-2-1612(K).
31. "OASIS" is Open Access Same-Time Information System,
				  which is an electronic bulletin board where transmission-related information is
				  posted for all interested parties to access via the Internet to enable parties
				  to engage in transmission transactions.
32. "Operating Reserve" means the generation capability above
				  firm system demand used to provide for regulation, load forecasting error,
				  equipment forced and scheduled outages, and local area protection to provide
				  system reliability.
33. "Potential Transformer (PT)/Voltage Transformer (VT)" is
				  an electrical device used to step down primary voltages to 120V for metering
				  purposes.
34. "Provider of Last Resort" means a provider of Standard
				  Offer Service to customers within the provider's certificated area whose annual
				  usage is 100,000 kWh or less and who are not buying Competitive
				  Services.
35. "Public Power Entity" incorporates by reference the
				  definition set forth in A.R.S. § 30-801.16.
36. "Retail Electric Customer" means the person or entity in
				  whose name service is rendered.
37. "Scheduling Coordinator" means an entity that provides
				  schedules for power transactions over transmission or distribution systems to
				  the party responsible for the operation and control of the transmission grid,
				  such as a Control Area Operator, Arizona Independent Scheduling Administrator,
				  or Independent System Operator.
38. "Self-Aggregation" is the action of a retail electric
				  customer that combines its own metered loads into a single purchase
				  block.
39. "Standard Offer Service" means Bundled Service offered by
				  the Affected Utility or Utility Distribution Company to all consumers in the
				  Affected Utility's or Utility Distribution Company's service territory at
				  regulated rates including metering, meter reading, billing and collection
				  services, demand side management services including but not limited to
				  time-of-use, and consumer information services. All components of Standard
				  Offer Service shall be deemed noncompetitive as long as those components are
				  provided in a bundled transaction under
				  R14-2-1606(A).
40. "Stranded Cost" includes:
a. The verifiable net difference between:
i. The net original cost of all the prudent jurisdictional
				  assets and obligations necessary to furnish electricity (such as generating
				  plants, purchased power contracts, fuel contracts, and regulatory assets),
				  acquired or entered into prior to December 26, 1996, under traditional
				  regulation of Affected Utilities; and
ii. The market value of those assets and obligations directly
				  attributable to the introduction of competition under this Article;
b. Reasonable costs necessarily incurred by an Affected
				  Utility to effectuate divestiture of its generation assets;
c. Reasonable employee severance and retraining costs
				  necessitated by electric competition, where not otherwise provided; and
d. Other transition and restructuring costs as approved by
				  the Commission as part of the Affected Utility's Stranded Cost determination
				  under
				  R14-2-1607.
41. "System Benefits" means Commission-approved utility low
				  income, demand side management, Consumer Education, environmental, renewables,
				  long-term public benefit research and development, and nuclear fuel disposal
				  and nuclear power plant decommissioning programs, and other programs that may
				  be approved by the Commission from time to time.
42. "Transmission Primary Voltage" is voltage above 25 kV as
				  it relates to metering transformers.
43. "Transmission Service" refers to the transmission of
				  electricity to retail electric customers or to electric distribution facilities
				  and that is so classified by the Federal Energy Regulatory Commission or, to
				  the extent permitted by law, so classified by the Arizona Corporation
				  Commission.
44. "Unbundled Service" means electric service elements
				  provided and priced separately, including, but not limited to, such service
				  elements as generation, transmission, distribution, Must Run Generation,
				  metering, meter reading, billing and collection, and ancillary services.
				  Unbundled Service may be sold to consumers or to other Electric Service
				  Providers.
45. "Universal Node Identifier" is a unique, permanent,
				  identification number assigned to each service delivery point.
46. "Utility Distribution Company" (UDC) means the electric
				  utility entity regulated by the Commission that operates, constructs, and
				  maintains the distribution system for the delivery of power to the end user
				  point of delivery on the distribution system.
47. "Utility Industry Group" (UIG) refers to a utility
				  industry association that establishes national standards for data
				  formats.
The Arizona
				  Corporation Commission has determined that the following Section is exempt from
				  the Attorney General approval provisions of the Arizona Administrative
				  Procedure Act (A.R.S. § 41-1041 ) by a court order (State ex. rel. Corbin
				  v. Arizona Corporation Commission, 174 Ariz. 216 848 P.2d 301 (App.
				  1992)).