Arizona

Utility Regulatory Commission
Arizona Corporation Commission
1-800-222-7000 or 1-800-535-0148
www.cc.state.az.us

Consumer advocate
Residential Utility Consumer Office
602-364-4835
www.azruco.com

Grassroots groups
Arizona Community Action Association
602-604-0640
www.azcaa.org/
ACAA works to ensure that low-income consumers and programs are not lost in the shuffle during the transition to utility deregulation. Specifically, ACAA wants to ensure that low-income consumers benefit from promised rate reductions and that existing low-income programs are not be reduced.

The Public Interest Coalition on Energy
www.cc.state.az.us/working/unbun-8.htm
Public Interest Coalition on Energy is a consortium of energy consumer interests which includes: Arizona Association of Industries, Arizona Retailers Association, Arizona Small Business Association, Arizona Hotel/Motel Association, Arizona Multihousing Association, Arizona Mobile Home Parks Association, Arizona Food Marketing Association, National Federation of Independent Businesses, Arizona Mining Industry Gets Our Support, and Lake Havasu Manufacturing Group.

Disconnection policy

• A utility may disconnect customers for any of the following reasons if it meets Commission notice requirements:

1. customer violation of any of the utility's tariffs;
2. failure to pay a delinquent bill for utility service;
3. failure to meet or maintain the utility's deposit requirements;
4. failure to provide the utility reasonable access to its equipment and property; or
5. customer breach of a written contract for service between the utility and customer.

• Each utility must maintain a record of all terminations of service with notice for one year.
• Each utility must give at least five days' advance written notice prior to termination, by leaving a copy of the notice with the customer or posting it first class to the customer's last known address. After the period of time allowed by the notice has elapsed, if the delinquent account has not been paid or payment arrangements made with the utility, the utility may terminate service on or after the day specified in the notice without giving further notice.
• Service may only be disconnected in conjunction with a personal visit to the premises by an authorized representative of the utility.

Customer service

• All utilities must provide potential customers with a concise summary of:

1. the rate schedule applied for, including the monthly minimum or customer charge;
2. the amount of the charge; and
3. the specific amount of usage included in the minimum charge;
4. rate blocks, where applicable; and any adjustment factor and method of calculation.

• The utility must identify which tariff that is most advantageous to the customer.
• At customer request, a utility must make available, not later than 60 days after service commencement, a concise summary of the utility's tariffs and the Commission's rules and regulations on deposits, termination of service, billing and collection, and complaint handling.
• At customer request, a utility must provide a written statement of actual consumption by the customer for each billing period during the past 12 months.
• Each utility must inform all new customers of their right to obtain the above information.
• All utilities are required to inform residential customers of any changes in tariffs within 60 days of the effective date of the change.
• Deposits must be interest bearing, with an interest rate and method of calculation approved by the Commission. Customers who cannot produce the receipt for their deposit do not lose their right to receive a refund of the deposit reflected on the utility's records.
• A utility may require a residential customer to establish or reestablish a deposit if the customer becomes delinquent in the payment of two bills within a 12-consecutive-month period or has been disconnected for service during the last 12 months.
• The amount of a residential customer's deposit cannot exceed two times the customer’s estimated average monthly bill.
• If a utility distribution company customer with an established deposit signs on for competitive services from an electric service provider, the distribution company must refund a portion of the customer’s deposit in proportion to the expected decrease in monthly billing, if the customer owes no back payments to the distribution company.
• A customer returning to standard offer service may be required to increase an established deposit in proportion to the expected increase in monthly billing.
• If a competitive supplier is going to cease service to customers, it must provide at least 45 days written notice to allow customers the time to procure service from other suppliers.
• If a customer will be returned to standard offer service, the supplier must give 5 days notice.

Deposits/fees

• A utility cannot require a deposit from a new applicant for residential service if the applicant has not made delinquent energy payments more than twice in the past 12 months or been disconnected for non-payment.
• In lieu of a deposit, a new applicant may provide a Letter of Guarantee from a governmental or nonprofit entity or a surety bond as security.
• Deposits must be interest bearing, with an interest rate and method of calculation approved by the Commission. Customers who cannot produce the receipt for their deposit do not lose their right to receive a refund of the deposit reflected on the utility's records.
• A utility may require a residential customer to establish or reestablish a deposit if the customer becomes delinquent in the payment of two bills within a 12-consecutive-month period or has been disconnected for service during the last 12 months.
• The amount of a residential customer's deposit cannot exceed two times the customer’s estimated average monthly bill.
• If a utility distribution company customer with an established deposit signs on for competitive services from an electric service provider, the distribution company must refund a portion of the customer’s deposit in proportion to the expected decrease in monthly billing, if the customer owes no back payments to the distribution company.
• A customer returning to standard offer service may be required to increase an established deposit in proportion to the expected increase in monthly billing.

Deferred payments

• Before discontinuing service, a utility may offer a deferred payment plan to qualifying residential customers to retire unpaid bills. The payment agreement will require customers to pay a reasonable amount of the outstanding bill at the time the deferred payment agreement begins; to pay all future bills; and to pay a reasonable portion of the remaining outstanding balance in installments over a period no longer than six months.
• To determine a reasonable installment payment schedule, the utility and the customer must consider the size of the delinquent account, the customer’s ability to pay and payment history, how long the debt has been outstanding, and the circumstances that resulted in the debt being outstanding.
• A deferred payment agreement may include a finance charge.
• Any customer who wants to enter into a deferred payment agreement must establish the agreement before the utility’s scheduled termination date for nonpayment of bills.
• If a customer does not fulfill the terms of a deferred payment agreement, the utility has the right to disconnect service. Under such circumstances, the utility is not required to negotiate a deferred payment agreement prior to disconnection.

Right to cancel

• A residential customer may rescind authorization to change providers of any service within three business days, without penalty, by providing written notice to the provider.

Billing and collections

• Electric service providers must ensure that bills issued on their behalf include their address and toll-free telephone numbers for billing, service, and safety inquiries. The bill must also include the address and toll-free telephone numbers for the Phoenix and Tucson Consumer Service Sections of the Arizona Corporation Commission Utilities Division.
• Electric service providers must ensure that billing and collections services rendered on its behalf comply with all Arizona Corporation Commission rules.
• Distribution utilities and competitive suppliers must provide customers with a consumer information label. The label will include the price to be charged for generation services, price variability information, customer service information, and the time period for which this information is valid.

Supplier licensing

• All electric service providers must be authorized (certified) by the Commission to do business in Arizona.
• The Commission may deny certification to any applicant that: does not provide the information required; does not possess adequate technical or financial capabilities to provide the proposed services; seeks certification as a load-serving entity but does not have an electric service provider service acquisition agreement with a utility distribution company; fails to provide a performance bond, if required; fails to demonstrate that its certification will serve the public interest; seeks certification as a load-serving entity and fails to submit an executed service acquisition agreement with a utility distribution company for approval by the Commission before offering service.
• In appropriate circumstances, the Commission may require, as a precondition to certification, a performance bond to cover any advances or deposits the applicant may collect from its customers, or order that advances or deposits be held in escrow or trust.

Slamming

• Customers must provide written authorization to change service providers. If a customer is switched without written authorization ("slammed"), the new provider must pay the costs of switching the customer back to the previous provider and refund the entire amount of generation-related charges for three months or the period of unauthorized service, whichever is greater.

Fraud

• Arizona electricity consumers are entitled to protection from "scams" and other unfair business practices.

Dispute resolution

• Any utility customer who disputes a portion of a bill for utility service must pay the undisputed portion of the bill and notify the utility's designated representative that the unpaid amount is in dispute.
• Upon receipt of the customer notice of dispute, the utility must:

1. Notify the customer within five working days that it received the written dispute notice.
2. Initiate a prompt investigation.
3. Withhold disconnection of service until the investigation is completed and the customer is informed of the results.
4. Inform the customer of the right of appeal to the Commission.

• Once the customer has received the results of the utility's investigation, the customer must submit payment within five working days for any disputed amounts.
• Failure to make full payment is grounds for termination of service.

Disclosure

• Upon the request of a customer, a supplier must provide information on the fuel mix and emissions characteristics of the resource portfolio. Suppliers must also prepare an annual disclosure report that aggregates the resource portfolios of the supplier and its affiliates.

Advertising/marketing/trade practices

• Arizona electricity consumers are entitled to protection from "scams" and other unfair business practices.

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