COMMISSION NEWS

ARIZONA CORPORATION COMMISSION
1200 W. WASHINGTON STREET
PHOENIX, AZ 85007

TO: EDITORS, NEWS DIRECTORS

DATE: April 9, 1998

FOR: IMMEDIATE RELEASE

CONTACT: Stephen Ahearn (602) 542-0844


COMMISSION BEGINS ELECTRIC INDUSTRY EDUCATION PROCESS

PHOENIX, AZ/April 9, 1998 - The Arizona Corporation Commission ("ACC") has begun a formal customer education process to prepare Arizona citizens for the restructured electric utility industry.

The Customer Education Working Group has been formed to develop a plan for educating Arizona electric customers about retail electric competition, which is scheduled to begin in Arizona on January 1, 1999. The ACC wants Arizona consumers to receive objective, unbiased information so that they will be able to make informed choices concerning who will supply their electric generation needs in the future.

"The Commission will continue to be vigilant about any fraudulent claims and unethical business practices of the many new electricity suppliers who we expect will be entering the Arizona market," said Commissioner-Chairman Jim Irvin, "but there is no substitute for an informed buyer and consumer."

Attending the initial meeting were representatives from Arizona and non-Arizona electric suppliers, consumer groups, government agencies, environmental groups and other interested parties. Three subcommittees have been formed to address specific areas of the education process: Research, Audiences and Messages, and Funding.

"As we move to competition, consumers will be choosing the types of electric power generation rather than the utilities," said Commissioner Renz Jennings. "Customer disclosure and the ability to easily compare price, terms, power generation sources, labor information and environmental impact will be especially important in the restructured electricity market."

The cost of the education process will also be an important consideration. "California spent almost $90 million trying to educate their consumers about retail electric competition," said Commissioner Carl Kunasek. "The ACC will instead use a collaborative process with the many stakeholders to assure the delivery of a thorough, objective and cost-effective message to Arizona consumers."

For information about attending meetings of the working group or its subcommittees, contact Barbara Keene at 542-0853. In addition, meeting agendas and minutes will be posted on the ACC's website at www.cc.state.az.us.