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 R14-2-1606 - Services Required to be Made Available

Current through Register Vol. 30, No. 28, July 12, 2024
A. On the date its service area is open to
				competition under
				R14-2-1602,
				each Affected Utility or Utility Distribution Company shall make available
				Standard Offer Service and Noncompetitive Services at regulated rates. After
				January 1, 2001, Standard Offer Service and Noncompetitive Services shall be
				provided by Utility Distribution Companies who shall also act as Providers of
				Last Resort.
B. After January 1,
				2001, power purchased by an investor owned Utility Distribution Company for
				Standard Offer Service shall be acquired from the competitive market through
				prudent, arm's length transactions, and with at least 50% through a competitive
				bid process.
C. Standard Offer
				Tariffs
1. By July 1, 1999, or pursuant to
				Commission Order, whichever occurs first, each Affected Utility shall file
				proposed tariffs to provide Standard Offer Service. Such rates shall not become
				effective until approved by the Commission. Any rate increase proposed by an
				Affected Utility or Utility Distribution Company for Standard Offer Service
				must be fully justified through a rate case proceeding.
2. Standard Offer Service tariffs shall
				include the following elements, each of which shall be clearly unbundled and
				identified in the filed tariffs:
a.
				Competitive Services:
i. Generation, which
				shall include all transaction costs and line losses;
ii. Competition Transition Charge, which
				shall include recovery of generation related regulatory assets;
iii. Generation-related billing and
				collection;
iv. Transmission
				Services;
v. Metering
				Services;
vi. Meter Reading
				Services; and
vii. Optional
				Ancillary Services, which shall include spinning reserve service, supplemental
				reserve, regulation and frequency response service, and energy imbalance
				service.
b.
				Non-Competitive Services:
i. Distribution
				services;
ii. Required Ancillary
				services, which shall include scheduling, system control and dispatch service,
				and reactive supply and voltage control from generation sources
				service;
iii. Must-Run Generating
				Units;
iv. System Benefit Charges;
				and
v. Distribution-related billing
				and collection.
3. Affected Utilities and Utility
				Distribution Companies may file proposed revisions to such rates with the
				Commission through Docket Control. Any rate increase proposed by an Affected
				Utility or Utility Distribution Company for Standard Offer Service must be
				fully justified through a rate case proceeding, which may be expedited at the
				discretion of the Utilities Division Director.
4. Such rates shall reflect the costs of
				providing the service.
5. Consumers
				receiving Standard Offer Service are eligible for potential future rate
				reductions as authorized by the Commission.
6. After January 2, 2001, tariffs for
				Standard Offer Service shall not include any special discounts or contracts
				with terms, or any tariff that prevents the customer from accessing a
				competitive option, other than time-of-use rates, interruptible rates, or
				self-generation deferral rates.