By Rachel Leingang | Arizona Capitol Times
A bill to ease regulations for Arizona’s electric cooperatives stalled after questions about its constitutionality.
But there could still be a push for a future ballot measure to remove co-ops from regulation by the Arizona Corporation Commission.
HB2524, sponsored by Republican Rep. Rusty Bowers, would have declared that a proposed rate increase by a member-owned nonprofit cooperative was presumed to be justified, as long as the cooperative’s board of directors approved it.
Now, the Corporation Commission regulates cooperatives, just as it regulates larger investor-owned utilities like Arizona Public Service and Tucson Electric Power. That means the commission decides if a rate is just and reasonable as part of a rate case proceeding.