PHOENIX - In preparation for an evidentiary hearing set for March 25, the Arizona Corporation Commission is scheduling three public comment sessions on Citizens Communications' request to recover costs stemming from an increase in the cost of electricity. The primary purpose for the meetings is to hear from consumers on the purchased power and fuel adjustment clause case, which could increase electric bills. Additionally, the Commissioners plan to set aside time for a limited discussion of increased natural gas costs since the same company also provides gas service.

In September 2000, Citizens applied to the Commission to place a temporary increase on electric bills that would allow the company to recover money it has already spent to buy power. Citizens does not own enough power plants to serve all of its customers so it has to contract with other suppliers for the power it needs. At the time, the company was under contract to purchase power from Arizona Public Service. Recent documents filed by the utility company assert that the firm has spent more than $99 million dollars more than it has recovered from customers through the existing rate structure. In other words, to get power to its customers, Citizens says it had to go "in the red" by $99 million more than it has collected from consumers.

The Arizona Corporation Commission staff is in the process of evaluating the merits of Citizens' application in preparation for a courtroom-style administrative hearing. Personnel from the Commission are auditing records and assessing whether those costs should be recovered and, if so, to what extent and over what period of time. Other parties, such as the Residential Utility Consumer Office (RUCO), are doing their own audits and analysis in preparation for the hearing. Companies, organizations and individuals that have formally intervened will have an opportunity to question the company and argue their position at a March 25 hearing in Phoenix. An administrative law judge will preside over the hearing and assess the validity of each party's position.

Before the hearing begins, the Commissioners want to hear from members of the public who will be affected by the outcome of the case. The Commissioners, representatives from the utility and local government officials will attend the public comment sessions. The schedule is as follows:

Nogales
Tuesday, February 19, 2002 at 6:00 p.m.
Nogales City Hall
1018 Grand Avenue
Nogales, Arizona 85621

Kingman
Thursday, February 28, 2002 at 6:00 p.m.
Board of Supervisors Meeting Room
809 East Beale Street
Kingman, Arizona 86402

Lake Havasu City
Friday, March 1, 2002 at 10:00 a.m.
Mohave County Library
1770 North McCulloch
Lake Havasu City, Arizona 86403

Public comment sessions are formal proceedings and all comments will be transcribed by a court reporter. The Commissioners may limit the duration of each individual's comments to allow everyone a fair opportunity to speak.

No date has been set for the Commissioners to make a final decision on the case. The hearing in front of the administrative law judge may last several days. The judge then waits for any final briefs to be filed, for the transcripts to come in and begins working on a recommendation for the Commissioners to consider. This can take six to eight weeks or more, depending on whether the parties are ordered to submit summary briefs. Consumers should, however, be aware and anticipate that this case could result in an increase to their electric bills.

For those who cannot attend in person, the Commission encourages the timely submission of written comments. Submit comments to the Docket Control Center and they will be distributed to all registered parties or intervenors. Be sure to reference docket number E-01032C-00-0751 so that the letter is properly catalogued and referenced. Send to:

Arizona Corporation Commission
Docket Control Center
1200 West Washington
Phoenix, AZ 85007