COMMISSION NEWS |
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ARIZONA CORPORATION COMMISSION |
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TO: EDITORS, NEWS DIRECTORS |
DATE: May 29 1998 |
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FOR: IMMEDIATE RELEASE |
CONTACT: Paul Bullis (602) 542-3402 |
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COURT OF APPEALS REJECTS ATTACK ON CORPORATION COMMISSION AUTHORITY TO RESTRUCTURE ELECTRIC INDUSTRY |
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PHOENIX, AZ/May 29,1998 - The Arizona Court of Appeals, on May 28, 1998, rejected another 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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"Yesterday's decision by the Arizona Court of Appeals affirms what we have been saying all along, that the Corporation Commission does have the authority to begin the process of electric competition and bring the benefits to the ratepayers of Arizona," said Commissioner - Chairman Jim Irvin. "Practically speaking, the Court's action will ensure that Arizona will implement retail competition this coming January, keeping the Commission on schedule. This is a tremendous victory for all the citizens of this state." |
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Several monopoly electric utilities asked the Court of Appeals 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 territories to competition. The Court declined to accept the utilities' appeals, leaving intact the Superior Court's ruling in favor of electric competition. |
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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 allow other electric providers to compete with traditional utilities in what was once a monopoly market, providing opportunities for all customers to take advantage of the benefits of competition for electric service. |
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Since the utilities have challenged the move towards competition, two Superior Court judges have issued decisions upholding the Commission's action. In April, the utilities attempted to bypass the Court of Appeals by asking the Arizona Supreme Court directly to overturn Judge Dann's decision. The Supreme Court rejected the utilities' appeal on April 23, 1998. Now, the Court of Appeals has rejected a similar attempt to overturn the Commission's plans. As a result of the Court's action, the Commission's rules remain in effect, and retail electric competition will begin January 1, 1999. |
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Commissioner Renz D. Jennings reacted to the news by noting, "The time has come for the utilities to embrace competition and focus their efforts on making the coming transition as easy as possible for their customers." |
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