When utility rates include a regulatory asset based on a test year or past balance, the Arizona Corporation Commission and the utility must disclose its remaining balance and how much will be recovered through rates, so the 2 amounts can be compared.
Official title: corporation commission; utilities; amortization; tariffs
- September 12, 2026
What changes
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NowWhen a regulatory asset (generally, a cost a utility is allowed to recover from customers over time) is included in rates based on a test year or historical balance, the Corporation Commission and the utility must disclose the asset's unamortized (not yet paid off) balance as of the date the new rates take effect.
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NowThey must also disclose the difference between the test year balance and the balance on the date rates take effect, and the total amortization expense expected to be recovered while the rates are in effect.
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NowIf a utility has regulatory assets whose rate base value stays fixed until the next rate case, or whose value declines as the balance is paid down, the utility must disclose how each category is treated and whether and how rate base will be adjusted over time to reflect declining balances.
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NowThe commission is not required to adopt any particular adjustment method, but it must make sure the disclosures are enough to compare the total amount to be recovered in rates against the remaining unamortized balance.
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NowThe law states the Legislature intends for the commission and utilities to publicly post tariff schedules, including amortization schedules, that affect rates so the public can comment on them.
Who it affects
- Utility customers
- Public service corporations (regulated utilities)
- Arizona Corporation Commission
What you need to do
Nothing.
What the law doesn't answer
- Where, how and when the disclosures must be made or posted
- Whether the disclosure requirement applies to rate cases already underway
- Any penalty if a utility or the commission does not make the disclosures
- Whether any change to rates will result from the disclosures
- Which specific utilities have regulatory assets covered by this rule
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.