Section R14-2-1611. Rates

A.      Market determined rates for Competitive Services, as defined in R14-2-1601 shall be deemed to be just and reasonable.

B.       Each Electric Service Provider selling services under this Arti- cle shall have on file with the Commission tariffs describing such services and maximum rates for those services, but the services may not be provided until the Commission has approved the tariffs.

C.      Prior to January 1, 2001, competitively negotiated contracts governed by this Article customized to individual customers which comply with approved tariffs do not require further Commission approval. However, all such contracts  whose term is one year or more and for service of 1 MW or more must be filed with the Director, Utilities Division, through the Compliance Section, as soon as practicable. If a contract does not comply with the provisions of the Load Serving Entity’s approved tariffs, it shall not become effective without a Com- mission order. The provisions of such contracts shall be kept confidential by the Commission.

D.      Contracts entered into on or after January 1, 2001, which com- ply with approved tariffs need not be filed with the Director, Utilities Division. If a contract does not comply with the pro- visions of the Load Serving Entity’s approved tariffs, it shall not become effective without a Commission order.

E.       An Electric Service Provider holding a Certificate pursuant to this Article may price its Competitive Services, at or below the maximum rates specified in its filed tariff, provided that the price is not less than the marginal cost of providing the ser- vice.

F.       Requests for changes in maximum rates or changes in terms and conditions of previously approved tariffs may be filed with the Commission through Docket Control. Such changes shall become effective only upon Commission approval.

Historical Note

Adopted effective December 26, 1996, under an exemp- tion as determined by the Arizona Corporation Commis- sion (Supp. 96-4). Amended by an emergency action effective August 10, 1998, pursuant to A.R.S. § 41-1026, in effect for a maximum of 180 days (Supp. 98-3). Emer- gency amendment replaced by exempt permanent amend- ment effective December 31, 1998 (Supp. 98-4). Former Section R14-2-1611 renumbered to R14-2-1610; new Section R14-2-1611 renumbered from R14-2-1612 and amended by exempt rulemaking at 5 A.A.R. 3933, effec- tive September 24, 1999 (Supp. 99-3). Amended by exempt rulemaking at 6 A.A.R. 4180, effective October 13, 2000 (Supp. 00-4).

Note

Editor’s Note: The Arizona Corporation Commission has determined that the following Section is exempt from the Attorney General approval provisions of the Arizona Administrative Proce-

Corporation Commission – Fixed Utilities

dure Act (A.R.S. § 41-1041) by a court order (State ex. rel. Corbin

v. Arizona Corporation Commission, 174 Ariz. 216 848 P.2d 301 (App. 1992)).