COMMISSION NEWS |
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ARIZONA CORPORATION COMMISSION |
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TO: EDITORS, NEWS DIRECTORS |
DATE: June 9, 1998 |
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FOR: IMMEDIATE RELEASE |
CONTACT: Perry Baker (602) 542-0844 |
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ACC Approves First Step Leading to Electric Competition |
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After two days of open meetings, the Arizona Corporation Commission has approved a plan that would begin the process of electrical competition by January 1, 1999. |
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The Commission adopted a plan that will allow industrial consumers to select their electric provider in a competitive market beginning next January. A phase-in program for residential consumers would begin next summer, and all residential consumers would be included in the competitive market by 2001. In addition, by a 2 to 1 vote, the Commission approved the critical issue of stranded costs, those utility assets built to comply with a regulated system that may be unrecoverable in a competitive market. The adopted order requires utilities to divest their generating facilities if they wish to recover stranded costs. All utilities have 60 days to provide the Commission a preliminary report on what their intentions are, and how they would go about selling off the generating plants. |
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Commissioner-Chairman Jim Irvin said, "This is a reasonable order, that allows us to remain on track for our January 1st target date for phasing in electric competition." The stranded costs issue had been "a major roadblock in our efforts to provide a comprehensive plan, a roadmap for electric competition" according to Irvin. "With this agreement in place, we can proceed with defining the details of this incredible journey that will ultimately benefit all consumers in Arizona." |
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Commissioners Irvin and Renz Jennings voted in favor of the stranded cost plan, while Commissioner Carl Kunasek voted against it. |
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