HB 2782

House Engrossed
corporation
  commission; utilities; amortization; tariffs
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 257
HOUSE BILL 2782
AN
ACT
amending title 40, chapter 2, article 7,
arizona revised statutes, by adding section 40-363; relating to utility
rate schedules.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 40, chapter 2, article 7,
Arizona Revised Statutes, is amended by adding section 40-363, to read:
START_STATUTE40-363. Commission; public utilities; establishing rates; fair value
A. If a regulatory asset is included
in rate base or otherwise reflected in rates based on a test year or historical
balance, The commission and the public service corporation shall disclose all of the
following:
1. The UNAMORTIZED balance of the
REGULATORY asset as of the rate effective date.
2. The difference between the test
year balance and the rate effective date balance.
3. the total
amount of amortization expense expected to be recovered
over the period the rates are in effect.
4. If a public service corporation's
regulatory assets include either assets whose rate base value remains fixed
until the next rate case or assets whose rate base value declines in proportion
to the amortization of the Unamortized balance, the public service corporation shall disclose the treatment applied
to each category of regulatory asset and indicate whether and how rate base
will be adjusted over time to reflect declining balances
for the assets subject to such adjustment.
B. Nothing in this section requires
the commission to adopt any particular adjustment mechanism, but this section
does require the commission to ensure that the disclosures required by this
section are sufficient to compare the total amounts that will be recovered in
rates against the remaining unamortized balance of
regulator asset.END_STATUTE
Sec. 2. Legislative intent
The legislature intends that the
corporation commission and public service
corporations publicly post tariff schedules, including amortization schedules,
that impact rates as this provides the public with the ability to comment on
rate schedules that are set by the corporation commission.
APPROVED BY THE GOVERNOR JUNE 22, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 22, 2026.