COMMISSION NEWS |
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ARIZONA CORPORATION COMMISSION |
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TO: EDITORS, NEWS DIRECTORS |
DATE: April 23, 1998 |
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FOR: IMMEDIATE RELEASE |
CONTACT: Paul Bullis (602) 542-3402 |
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Supreme Court rejects attack on Corporation Commission Authority To Restructure Electric Industry |
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PHOENIX, AZ/April 23,1998 - The Arizona Supreme Court earlier today rejected an attempt by electric utilities to short-circuit the Arizona Corporation Commission's plans to bring retail electric competition to the state beginning January 1, 1999. |
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Several monopoly electric utilities asked the Supreme Court to overturn a decision by Maricopa County Superior Court Judge B. Michael Dann which upheld the Commission's authority to adopt rules requiring those utilities to open up their service territory to competition. The Court declined to accept the utilities' appeals, leaving intact Judge Dann's ruling in favor of the Commission. |
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In December of 1996, the Commission enacted rules to initiate and govern the transition to competition in electric services. The Commission's rules provide that other electric providers may compete with traditional utilities in what was once a monopoly market. The rules provide opportunities for all customers to take advantage of the benefits of competition for electric service. |
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Virtually all of Arizona's electric utilities appealed the Commission's decision to adopt the rules. Two Superior Court judges have issued decisions upholding the Commission's action. The utilities attempted to bypass the Court of Appeals by asking the Supreme Court directly to overturn Judge Dann's decision. As a result of the Supreme Court's refusal to hear the case now, the utilities must go to the Court of Appeals if they wish to seek to overturn Judge Dann's decision. In the meantime, the Commission's rules remain in effect. |
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"This action supports what we have been saying all along, that the Commission has the authority to bring the benefits of electric competition to the ratepayers of Arizona," said Commissioner Carl Kunasek. |
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"The Supreme Court's refusal to hear this case is a clear victory for the customer, who will be able to escape the stranglehold over the customer's ability to choose their electric energy provider," said Commissioner Renz D. Jennings. "The Commission remains on track for bringing competition to Arizona on January 1, 1999. The utilities should stop trying to set up roadblocks to competition, and focus on making the transition as easy as possible for their customers." |
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The Supreme Court issued a written decision this afternoon. |
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