Bill > HB2782

This bill requires the Arizona Corporation Commission, which oversees public utilities, and public service corporations to disclose specific financial information when a "regulatory asset" is included in their rate base or reflected in their rates. A regulatory asset is essentially an accounting item that allows a utility to recover certain costs over time through customer rates, often related to past expenses or investments that were not immediately recovered. The bill mandates that these entities must clearly state the remaining balance of the regulatory asset, any difference between projected and actual balances, and the total amount of amortization expense (the gradual recovery of the asset's cost) that customers will pay over the period the current rates are in effect. Furthermore, if a utility has different types of regulatory assets, some with fixed values and others that decrease as they are amortized, the bill requires disclosure of how each type is treated and how the rate base will be adjusted over time to reflect these declining balances. While the bill doesn't dictate specific accounting methods, it ensures that the disclosed information allows for a clear comparison between the total amounts customers will pay and the outstanding balance of the regulatory asset. Additionally, the legislature intends for tariff schedules, including amortization schedules that affect rates, to be publicly posted to allow for public comment on rate decisions.